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Sources: GM, Chrysler to get more money; GM CEO to resign

  • Story Highlights
  • Departure of General Motors' CEO part of government's bailout strategy, sources say
  • GM official: White House signaled that "new leadership" was key to more aid
  • Officials: GM to get 60 days of financing; Chrysler could get $6 billion
  • GM, Chrysler were told to prove viability to Treasury Department by Tuesday
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WASHINGTON (CNN) -- The Obama administration is giving General Motors 60 days worth of financing for restructuring, according to senior administration officials.

General Motors' Rick Wagoner, CEO of the company since 2000, is on his way out, sources say.

General Motors' Rick Wagoner, CEO of the company since 2000, is on his way out, sources say.

Chrysler will receive as much as $6 billion and 30 days to complete an agreement with Italian automaker Fiat, the officials said.

Meanwhile, White House and GM sources told CNN Sunday that GM Chief Executive Rick Wagoner will resign as part of the federal government's bailout strategy for the troubled automaker.

Wagoner's departure comes as President Obama is expected to announce Monday the latest details of the government's plans for restructuring GM and Chrysler LLC, which have been pushed to the brink by huge losses and a sharp decline in sales.

Fritz Henderson, GM's chief operating officer, is expected to be named GM's interim CEO, according to two GM sources.

A GM spokesman declined to comment on reports of Wagoner's resignation. A company statement said: "We are anticipating an announcement soon from the administration regarding the restructuring of the U.S. auto industry."

GM and Chrysler face a Tuesday deadline to prove to the Treasury Department that they can be viable in the long term. Without such a finding, the government can recall the $13.4 billion it already loaned to GM and the $4 billion it loaned to Chrysler.

Wagoner, a 32-year company veteran, has been CEO of General Motors since 2000. Before becoming CEO, he was chief operating officer and led the company's North American operations. He also served as chief financial officer from 1992 to 1994.

A senior GM official official told CNN that the White House and its auto task force had "sent very clear signals" that the key to more help was "new leadership" and something that would help the administration see real change.

General Motors has been hit hard as auto sales have plummeted. Sales have continued to tumble through the early months of this year, falling 40 percent across the industry and about 50 percent at GM and Chrysler.

The companies and industry analysts have slashed their sales estimates for the year, and that has heightened the need for more loans to keep GM and Chrysler afloat.

Last month, the two companies filed reports on their restructuring efforts. GM said it needed up to $16.6 billion more in loans. Chrysler asked for an additional $5 billion, and said it would need the money by the end of March to avoid running out of cash.

The Obama administration had been widely expected to approve the requests. Obama has repeatedly spoken about the importance of saving the struggling auto industry, and on March 19, the Treasury Department announced $5 billion in federal help for GM's and Chrysler's auto parts suppliers.

CNN's Kate Bolduan and John King contributed to this report.

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