Car giant General Motors (GM) has filed for bankruptcy protection, marking the biggest failure of an industrial company in US history.
The widely expected move comes after GM had seen its losses widen following a steep fall in sales in recent years.
The move into bankruptcy protection has been backed by the US government, which is now expected to take a 60% stake in the company.
The White House is also due to announce an extra $30bn (£18.5bn) of aid for GM.
President Barack Obama will host a press conference on GM's future later.
GM, which had already received $20bn of state aid since the end of last year, said in its bankruptcy filing that its current debts total $173bn.
Expected job cuts
US Chapter 11 bankruptcy protection gives an American company time to restructure its finances while being protected from its creditors.
The restructuring is likely to drastically change GM, with some 20,000 US workers thought likely to lose their jobs as the firm streamlines its operations.
However, GM's European arm is likely to be spared bankruptcy following a proposed deal by Canadian car parts maker Magna International to buy GM Europe's Vauxhall and Opel brands.
It is expected that GM may be able to exist bankruptcy protection within 60 to 90 days.
GM, once the largest company in the world, has been losing market share since the early 1980s.
It has been driven to bankruptcy because of high production costs and by the collapse in credit markets and consumer spending. It made losses of $30bn last year.
GM was also slow to move away from producing gas-guzzling SUVs when consumers were looking for more fuel-efficient vehicles.
Toyota sold more vehicles than GM in 2008, putting an end to the American company's 77-year reign as the world's biggest carmaker
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