Rick Wagoner, the chairman and chief executive of General Motors (GM) is to step down as part of an agreement with the White House to get more federal aid for the struggling carmaker. The Obama administration is believed to have asked Mr Wagoner, who has led GM since 2000, to give up his dual post.

His departure came as Peugeot Citroën ousted Christian Streiff, its chief executive, as the French carmaker also struggles with falling sales.

GM has received $13.4 billion (£9.38 billion) from the US Government and has asked for a further $16.4 billion but warned that even with that aid it may still founder if car sales do not pick up next year. GM, which is the world’s second largest car company by unit sales, has made $82 billion in losses in the past four years and would have gone bust at the end of last year if the US Government had not stepped forward with the loan.

Mr Wagoner said he would work for just $1 this year after being paid $5.4 million last year. This was down from $14.1 million in 2007.

President Barack Obama is due to announce today his interim conclusions on how GM and its smaller rival Chrysler might be nursed back to health. The President told a television show yesterday that he intended to set out “a set of sacrifices for all parties involved — management, labour, shareholders, creditors, suppliers, dealers”.

He added that the two ailing car companies were not far enough down the path of restructuring to ensure a “brighter future down the road”.

GM and Chrysler have until March 31 to submit new restructuring plans to the Government’s automotive task force, which will determine whether they are capable of survival. Chrysler received $4 billion in taxpayer loans in December and wants $5 billion more.

President Obama is expected to hold off today on granting new loans so that GM and Chrysler can put more pressure on their stakeholders to restructure existing agreements. Analysts say GM has enough money to keep going for at least a month before it will need more from Washington.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax