Rick Wagoner – the chief executive of struggling US car giant, General Motors has been ordered to step down by US President Barack Obama.
The auto task force appointed by Mr Obama released two reports on Monday on the financial health of both GM and Chrysler.
The two firms have already received substantial bail-outs but now reports have suggested that a frustrated Mr Obama will reject GM and Chrysler’s turnaround plans as unrealistic, raising the risk of the carmakers’ bankruptcy.
It also said that it would pledge to fund GM’s operations for the next 60 days only, requiring the carmaker to come up with another plan detailing further restructuring.
“While Chrysler and GM are different companies with different paths forward, both have unsustainable liabilities and both need a fresh start,” the task force said.
In an interview with US broadcaster CBS, President Obama said the firms must do more to justify further aid, saying “they’re not there yet”.
