Washington  - US carmakers General Motors Corp and Chrysler LLC Thursday said they would be willing to consider a merger as a condition for receiving a federal bail-out.

The idea was suggested by US lawmakers during a committee hearing on the three US carmakers' request for 34 billion dollars in federal aid to avoid bankruptcy in the midst of an economic recession.

Chrysler chief executive Rob Nardelli said he would accept the requirement if it meant saving his 80-year-old company.

"If in fact that's the criteria ... I would do it," Nardelli said in testimony before the Senate Banking Committee.

GM CEO Rick Wagoner also said he would also "consider it very seriously" if Congress forced it upon them, but argued it would be better to cut costs through alliances on specific models rather than a full merger.

The two companies have long been in talks about a merger, but gave up on the idea after US financial markets collapsed in September. Both said they did not have the short-term financing to go through with a deal.

The combination could save an estimated 8-10 billion dollars per year. But Ron Gettelfinger, head of the industry labour union, the United Auto Workers, voiced skepticism of the idea out of fear it would prompt significant job cuts. (dpa)