GM president steps aside

Reports from the United States are filtering in that GM boss Rick Wagoner (pictured in black shirt) stood down from his role under increasing pressure from US President Barack Obama. Late this afternoon, GM issued the following statement from Wagoner, confirming that he was stepping down with immediate effect:

General Motors is heavily reliant on the US Government's financial aid package and Wagoner's departure appears to have been a concession the corporation needed to make for continuing support from the government. The US government Auto Task Force is currently assessing the condition of the country's car industry as both GM and Chrysler face the possibility of bankruptcy.

The Task Force is due to hand down its findings and make recommendations for the restructuring of the industry on March 31.

GM has already received US$13.4 billion in aid and said in a submission to the treasury last month that it required an additional US$16.4 billion.

Wagoner had previously stated it was his intention to stay on and he had received the support of the board. Current chief operating officer Fritz Henderson (pictured in suit) will take over the CEO position, at least temporarily. He has been charged with looking after the day-to-day running of the business in recent months as Wagoner has been busy lobbying for the company's survival.

In an official release accompanying Wagoner's statement, GM announced, along with Wagoner's departure, the complexion of the Board of management is likely to change radically in the near future.