WASHINGTON, March 30, 2009 (AFP) - The White House Monday gave struggling US automaker General Motors 60 days to present a new cost-cutting plan to qualify for more government loans.

After a lengthy review of GM's restructuring plan, the US will continue to provide assistance to the company during the time it takes to come up with a new plan, the administration said in a report.

"While GM's current plan is not viable, the administration is confident that with a more fundamental restructuring, GM will emerge from this process as a stronger more competitive business," the White House said.

GM chief Rick Wagoner was also ousted from the company's driving seat with president and chief operating officer Fritz Henderson set to take over.

"In this context, the administration will provide GM with working capital for 60 days to develop a more aggressive restructuring plan and a credible strategy to implement such a plan," it added.

"The administration will stand behind GM's restructuring effort."

The task force set up by President Barack Obama found the company's current plan to shake-up its ailing business and qualify for more government loans "is not viable and will need to be restructured substantially."

"It is strongly believed, however, that such a substantial restructuring will lead to a viable GM," it said in a report, warning such a radical overhaul of the business will take many years to complete.

"GM's plan is based on a number of assumptions that will be very challenging to meet without a more dramatic restructuring in which many of its planned changes are accelerated," the report found.

The struggling automaker submitted its restructuring plan to the US Treasury as part of a request for an additional 16.6 billion dollars in US government loans on top of the 13.4 billion approved in December.