General Motors chief executive Rick Wagoner has warned that consumer demand is weakening and that aggressive tax cuts are needed in order to boost spending.

Speaking to reporters after a meeting with President Bush at the White House he said vehicle sales were beginning to slow.

'Auto sales have actually hung in pretty well over the last couple of years despite, I think, an otherwise pretty weak economy,' he explained.

'But we are definitely seeing a weakening in demand and it tracks very closely with consumer confidence,' he said.

A number of chief executives attended the meeting at the White House to discuss President Bush's $726 billion tax cut package, which Mr Wagoner said could prove crucial.

'We know this can work and we think right now is the time to put forth a very aggressive (tax cut) package and we think if that happens, that is going to greatly heighten the chance that the economy can back on a more rapid growth pace,' said Wagoner.