Both Canadian and U.S. politicians are on track to revise deadlines provided to General Motors and Chrysler for producing restructuring their businesses after saying the first attempts would be rejected, while in parallel announcements that General Motors’ CEO Rick Wagoner resigned Monday morning at the request of President Obama’s administration.

President Obama’s team of analysts rejected the initial submissions from both General Motors and Chrysler, saying that their business plans were not viable on their own. General Motors will receive an additional 60 days to come up with a new business proposal, while Chrysler will receive an additional thirty days to negotiate technology transfer agreements with Fiat. In the interim, the U.S. government intends to provide working capital.

If Chrysler achieves the deal, the U.S. government will inject an additional $6 billion in financing, as requested — making a deal from Fiat not only a quick turn-around in technological innovation, but also a capital guarantee for the company.

CEO of General Motors, Rick Wagoner said that he was asked to “step aside,” as the administration replaced him with Fritz Henderson GMs chief operating officer and president since 2008, previously vice chairman.

“Year after year, decade after decade, we have seen problems papered over and tough choices kicked down the road, even as foreign competitors outpaced us,” said Obama at the White House. “Well, we have reached the end of that road. And we, as a nation, cannot afford to shirk responsibility any longer. Now is the time to confront our problems head-on and do what’s necessary to solve them.”

“I’m confident if each are willing to do their part, then this restructuring, as painful as it will be in the short term … will mark the beginning, not the end, of a great American auto industry,” Obama said.

Similarly, Minister of Industry, Tony Clement along with Jim Flaherty and Michael Bryant agreed on the same terms — 60 days for General Motors’ Canadian division and 30 days for Chrysler’s deal with both Fiat and the Canadian Auto Workers. An additional $4 billion interim loan will be provided to the two companies.

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