Barack Obama has said GM will emerge from its Chapter 11 bankruptcy filing a stronger company.
However, he also warned that there will be more job losses and further plant closures at General Motors before the company returns to health.
The restructuring will drastically change GM, with 20,000 US workers expected to lose their jobs as the firm streamlines its operations.
"I know you've already seen more than your fair share of hard times," Obama said, referring to workers facing the loss of their job. "I want you to know that what you're doing is making a sacrifice for the next generation - a sacrifice you may not have chosen to make, but a sacrifice that you are nevertheless called to make so that your children and all of our children can grow up in an America that still makes things."
The US president said a further $60 billion ((£18.3 billion) would be pumped into the ailing car giant in return for the government taking a 60 per cent stake in the company.
However, he stressed that the US government has no interest in using its right as a shareholder to try and run the company.
"What I am not doing, what I have no interest in doing, is running GM," he said.
Obama was positive about the future and said the plan to rescue the firm was “full of promise”.