Toyota says U.S. auto bankruptcy undesirable

TOKYO Dec 12 (Reuters) - Toyota Motor Corp (7203.T) said on Friday that a big bankruptcy in the U.S. auto industry would worsen an already severe business environment, adding it hoped for a solution to avoid such a scenario.

"The U.S. auto market is shrinking rapidly," Japan's top automaker said in a statement. "A major bankruptcy would exacerbate an already difficult environment for Toyota and the industry. We hope to avoid this situation."

Earlier, a proposed bailout of Detroit's General Motors Corp (GM.N), Chrysler and Ford Motor Co (F.N) failed in the U.S. Senate, raising the spectre of an industry collapse and sending automaker shares tanking in Asia. [ID:nN12422697] (Reporting by Chang-Ran Kim)