White House: Chrysler can be example for GM

WASHINGTON (Reuters) - Chrysler's bankruptcy proceedings show the possibility of an orderly restructuring of a major U.S. carmaker and could be a model for General Motors, the White House said on Friday.

"Chrysler is a hopeful example for General Motors," White House spokesman Robert Gibbs told reporters.

GM is expected to file for Chapter 11 protection by Monday and President Barack Obama will likely discuss the next steps in its reorganization at that time.

Gibbs said the government, which has been directing restructuring at GM and Chrysler, believes GM has taken important steps in restructuring ahead of Monday's government-imposed deadline to prove it can survive without government aid or seek court protection to finish the job.

"I know the president is encouraged that whatever happens at the deadline, the progress that is being made to restructure General Motors and put it on a path to being a viable auto company - we have seen encouraging signs," Gibbs said.

On the Chrysler bankruptcy, the White House believes the case is winding down in New York and is headed for the result envisioned by the administration when the automaker sought court protection on April 30.

"We are hopeful in the next few days that a deal will be approved for Fiat to purchase Chrysler and put it on that same path toward viability that we talked about," Gibbs said.

(Reporting by Caren Bohan, editing by Vicki Allen)