General Motors Chairman and CEO, Rick Wagoner, will step down immediately at the request of the White House.
The news comes as US President Barack Obama prepares to unveil additional restructuring efforts to save the domestic auto industry.
Wagoner's departure indicates that more management changes may be part of the deal.
The Obama administration reportedly plans to give GM enough government aid to restructure over the next 60 days. And Chrysler will get up to six billion US dollars and 30 days to complete an alliance with Italian automaker Fiat.
Wagoner has faced sharp criticism on Capitol Hill for what many lawmakers regard as years of mistakes and arrogance by the Big Three automakers.
Obama said on Sunday that GM and Chrysler and all those with a stake in their survival need to take more hard steps to help the struggling automakers restructure.
Barack Obama, US President, said, "And that's going to mean a set of sacrifices from all parties involved. Management, labor, shareholders, creditors, suppliers, dealers. Everybody's going to have to come to the table and say it's important for us to take serious restructuring steps now in order to preserve a brighter future."
(CCTV March 31, 2009)