GM's chief hopes to stem falling sales and profits

Rick Wagoner's new role comes after falling sales prompted GM to announce a profit warning.

GM's Buick, Cadillac and Chevrolet cars have lost out to foreign brands.

Mr Wagoner said his move would "shorten the lines of communication and decision-making" amid "challenges" faced by GM in North America.

"I feel confident today's moves will accelerate GM's transitions to a globally integrated automotive business that takes full advantage of our global expertise and delivers the kind of products that our customers expect in each local market," he added.

Shares hit

Under the shake-up, two other executives at GM North American will also take on different positions.

Chairman Bob Lutz and president Gary Cowger will leave their roles to focus on the company's global operations.

Last month, GM said earnings this year could be around 80% below its forecast.

GM has also been hit by higher healthcare costs in North America and lower profits at its financial services subsidiary.

The company has said it may phase out one of its weaker car brands if sales fail to meet targets.