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White House tells GM CEO: On your bike!

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White House tells GM CEO: On your bike!

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The White House has told the CEO of General Motors to resign. Rick Wagoner will step down as part of the US administration’s plans to rescue the auto industry, an unnamed official said. GM and Chrysler have asked for aid worth 16 billion euros, adding to the billions in loans approved last year.

But President Barack Obama says they need to do more to qualify: “That’s going to mean a set of sacrifices from all parties involved.” “Management, labour, shareholders, creditors, suppliers, dealers, everybody is going to have to come to the table and say it is important for us to take serious restructuring steps now in order to preserve a brighter future,” he said. Wagoner has headed GM for almost six years, after first joining the company in 1977. Critics say he has been too slow to cut costs and turn to more fuel-efficient cars, leaving the company floundering in competitors’ wake when the crisis hit. GM plans to axe 47,000 jobs, close 13 more plants and reduce its car brands by half. Whether that will be enough will be revealed when Barack Obama announces the details of his rescue package.