Auto Industry | featured news

President Obama is making a formal announcement this hour about his plans for troubled automakers General Motors and Chrysler, which have already been given $17.4 billion to keep them running.

The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.

Peugeot Citroën's board ousted CEO Christian Streiff, saying that a change in leadership was needed to "unlock the group's potential."

President Barack Obama will announce the next steps to help General Motors Corp and Chrysler LLC on Monday, the White House said, amid signs of progress for GM in talks aimed at slashing its debt and cutting costs in response to slack demand.

While automakers lay off staff and shut down plants in response to the economic downturn, one automaker announced Thursday that it will open a manufacturing plant in the United States, potentially creating hundreds of jobs in the area eventually chosen.

General Motors said 7,500 of its U.S. hourly workers accepted buyout offers, as the auto maker continues to shrink its operations amid heavy losses and a global slump in demand.

The Obama administration task force is likely to recommend more aid for struggling U.S. automakers, a senior senator said on Wednesday.

A wave of indignation swept over France when it became known Tuesday that the head of a large auto parts company who was edged out because of poor results walked away with a severance package worth more than $4 million.

The tiny Nano car, being sold at a base price of $2,200, already has 1 million applicants for the 60,000 expected to roll out this year.

The U.S. Treasury Department on Thursday pledged to provide up to $5 billion in financing support to auto suppliers to help them survive a massive downturn in car sales.