In a move that rattled investors and sent General Motors stock plunging 92 cents, the federal government rejected the company's viability proposal as well as the plan set forth by Chrysler LLC.

One of the first casualties of the government's hard line was GM CEO Rick Wagoner who resigned under pressure from the administration of President Barak Obama.

In remarks delivered on Monday, March 30, Obama said the move was "not meant as a condemnation of Mr. Wagoner, who has devoted his life to this company. Rather, it's a recognition that it will take a new vision and new direction to create the GM of the future."

GM now has sixty days to consider its next move, while Chrysler has been given just one month to consolidate a proposed alliance with Fiat SpA of Italy. Obama suggested that bankruptcy proceedings were not out of the question if the move would most rapidly and efficiently bring change to the ailing companies.

Wagoner, in describing his virtual dismissal said, "In the course of that meeting, they requested that I 'step aside' as CEO of GM, and so I have." He went on to thank stakeholders and employees at GM saying, "GM is a great company with a storied history. Ignore the doubters because I know it is also a company with a great future."