G.M. CEO Resigns at Obama's Request

March 30, 2009 12:00:00 AM PDT
The White House forced a big change at one of the big three automakers Sunday, just a day before announcing new steps to keep two of them in business, and keep thousands of Americans at work.The head of General Motors is stepping down at the request of the Obama administration and more big changes could be coming in the next two months. The announcement that G.M.'s Chief Executive Officer Rick Wagoner is resigning comes just one day before President Obama will unveil his plan to rebuild the U.S. auto industry.

The White House has said if struggling automakers G.M. and Chrysler want any more government loans, they would have to agree to deep restructuring. G.M. will get enough government aid to restructure over the next 60 days.

Chrysler will get up to six billion dollars, but it has 30 days to complete an alliance with Italian automaker Fiat. Both companies are now relying on a total of $17.4 billion dollars in federal aid just to stay in business.

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