Senate Republicans on Thursday unveiled legislation that would distribute the US government's stakes in beleaguered auto companies Chrysler and General Motors to taxpayers.

The measure, backed by four lawmakers, would thwart plans by President Barack Obama's administration to obtain a 60 percent ownership stake in GM and another eight percent in Chrysler.

The Treasury would instead be required to mail stock certificates to the approximately 120 million US taxpayers who filed returns on time for 2008 within one year of the companies emerging from bankruptcy.

The move also came just days after GM filed a massive bankruptcy and a New York court approved a speedy restructuring for Chrysler.

"This is the best way to get the auto companies out of the hands of Washington bureaucrats and politicians and into the hands of the American people and the marketplace, where it belongs," Senator Lamar Alexander told reporters.

"Giving the stock to the taxpayers who actually paid for it is the only way to get the government out of the companies' hair and give them a chance to succeed. And it will create an investor fan base of 120 million or so Americans, who are now stockholders in those companies."

But Alexander, who chairs the organization grouping the Senate's 40 Republicans, said he had not yet talked to the Obama administration about his plan, which has few chances of fairing well in the Democrat-controlled Congress.

The measure, which has the backing of Alexander, Minority Whip Jon Kyl, Senator Robert Bennett and Senator Judd Gregg, would also subject the administration to corporate laws and regulations, including shareholder lawsuits.

GM aims to emerge from bankruptcy protection as a leaner company within 60 to 90 days and has obtained an additional 30 billion dollars from the US Treasury to fund its restructuring.

Chrysler, the third-biggest US automaker, also has declared bankruptcy and is seeking a tie-up with Fiat backed by US and Canadian government financing to avoid liquidation.