Much of the money lent by the US administration to beleaguered Chrysler Group LLC and General Motors Co will never be seen again, a release by the Congressional Oversight Panel yesterday.

The report, citing estimates from the Treasury Department and Congressional Budget Office, suggested the Treasury Department consider placing its massive bailout amount given to these auto giants into a separate trust.

The panel, headed by Harvard University professor Elizabeth Warren said, "Although taxpayers may recover some portion of their investment in Chrysler and GM, it is unlikely they will recover the entire amount."

The panel was formed last year to oversee the $700 billion Troubled Asset Relief Programme (TARP).

The administration had already disbursed about $50.4 billion in TARP funds to GM and has committed $14.9 billion of the bailout funds to Chrysler,which were on the brink of collapse triggering fears of thousands of job losses.

The government now owns 10 per cent of Chrysler and 61 per cent of GM.