The Obama administration gave a cautious welcome to the restructuring reports delivered by General Motors and Chrysler but warned that more painful action was required if the government was to keep supporting the companies.

“It is clear that going forward, more will be required from everyone involved – creditors, suppliers, dealers, labour and auto executives themselves – to ensure the viability of these companies going forward,” said Robert Gibbs, White House press secretary.

The administration is due to set up its President’s Task Force on Autos – led by Tim Geithner, treasury secretary, and Larry Summers, chief White House economic adviser – within days.

Tim Geithner, Treasury secretary, said the panel would “solicit the full range of input from across the administration on the restructuring necessary for these companies to achieve viability”.

Nancy Pelosi, House speaker, said in a statement that the plans represented “the next step in what has been a difficult and disappointing chapter for the American economy, but I hope will become the transformation of our domestic automobile industry into a viable, technologically advanced and globally competitive manufacturing force”.

Steny Hoyer, the House majority leader, said Congress was “committed to holding the industry accountable for achieving real reform, and will also ensure that taxpayer money is protected”.

However, a senior Republican senator warned that no more taxpayer money should be given to Chrysler until its parent company, Cerberus, agrees to inject more funds into the company.

“This is a private equity-owned company,” Judd Gregg, the New Hampshire Republican, told Dow Jones.

“I don’t see how we put any more taxpayer money into it. [Cerberus] has enough money, if it wants to put up money it should do so.”

White House officials have hinted in recent days that the administration would be open to the companies restructuring while in government-backed bankruptcy.

Mr Gibbs said the president was committed to helping the carmakers recover.

Both the White House and Democratic leaders in Congress are desperate to avoid collapse of an industry that supports tens of thousands of people.

But the Democrats are facing resistance from Republicans to escalating government intervention in the economy at a time when the administration is also mulling additional public support for the financial sector.