The chief executive of struggling US car company General Motors has been ordered to step down by US President Barack Obama.
Rick Wagoner will leave immediately, a government official confirmed.
Mr Obama is preparing to outline terms for offering more help to GM and fellow car giant Chrysler.
The two firms have already received $17.4bn (£14.4bn) in bail-outs. Chrysler has requested a further $5bn while GM says it needs $16.7bn more.
Reports have suggested that a frustrated Mr Obama will reject GM and Chrysler's turnaround plans as unrealistic, raising the risk of the carmakers' bankruptcy.
Obama: Car industry 'must do more'. Courtesy of CBS 'Face the Nation'
The auto task force appointed by Mr Obama released two reports on Monday on the financial health of both carmakers, saying that Chrysler was "not viable" in its current form.
It demanded a merger with Italy's Fiat or another carmaker if Chrysler was to survive and said the Obama administration would only provide the company working capital for the next 30 days.
It also said that it would pledge to fund GM's operations for the next 60 days only, requiring the carmaker to come up with another plan detailing further restructuring.
"While Chrysler and GM are different companies with different paths forward, both have unsustainable liabilities and both need a fresh start," the task force said.
"Their best chance at success may well require utilising the bankruptcy code in a quick and surgical way."
In an interview with US broadcaster CBS, President Obama said the firms must do more to justify further aid, saying "they're not there yet".
Richard Lister, BBC News, Detroit
The cold and grey in snowy Detroit is an accurate reflection of the mood here as people wake up to the idea that their industrial landscape has changed again. President Obama has swept aside one of the pillars of the car industry here.
Mr Wagoner was a GM veteran, so on local talk shows his resignation was met with some incredulity that he could be forced out by Washington, with one caller insisting he was the victim of and not the creator of the global recession.
In rural Michigan there is a deep set conservatism that instinctively dislikes this level of government intervention.
But there is mounting nervousness too. Mr Wagoner had already pledged to cut a fifth of GM's global workforce and close 14 factories. By forcing him to go, President Obama is clearly saying is, that's not enough.
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.