At the same time, directors now hold more frequent consultations with the company. 'We have not only regular (board) meetings, but we have weekly update information calls on all the key issues we're dealing with,' he said.

Fisher said he proposed the weekly calls recently when oil prices began to rise sharply and the housing crisis took a toll on the economy. Previously, the board held such calls in months when it was not meeting.

'The fact that they're speaking weekly is very good news but indicative that things have heated up to a point where they have to be more engaged than the normal calendar of regular board meetings,' said auto analyst Maryann Keller. She said more frequent contact did not, however, suggest that Wagoner's job was at risk.

Fisher, a retired chairman and CEO of Eastman Kodak Co., said characterizations of this week's discussions as contentious were 'totally inaccurate,' but he said outside directors did put hard questions to the management.

'Every one of our board members is an accomplished person in his or her own right, and they ask very good, tough questions.'

He described the meeting as 'a very, very good meeting that delved deeply into very serious issues.'

A source familiar with the discussions told The News on Tuesday that the tone was contentious, and a few directors were expressing concern about the automaker's performance.

Some industry analysts have criticized Wagoner for being too slow to respond to changes in the market and for bungled efforts such as a costly tie-up with Fiat SpA of Italy.

But others say no one foresaw the difficulties he now faces. 'The issues here have nothing to do with leadership but with oil prices running very high, a dramatic collapse in demand and falling revenue,' said David Cole, chairman of the Center for Automotive Research in Ann Arbor and son of a former GM president.

'I don't think he's in any difficulty with the board,' Cole said. 'Everything I've heard is that they're very strongly supportive.'

A steep downturn in the U.S. auto market this year and an even deeper plunge in demand for large trucks and SUVs have complicated GM's turnaround efforts. The automaker has been slashing jobs and closing plants, and Wagoner negotiated a landmark contract last year with the United Auto Workers to cut costs in its North American operations.

GM also has rolled out vehicles such as the Malibu sedan that have drawn excellent reviews. But its share of the U.S. auto market has fallen to 21.3 percent this year after GM's sales tumbled 17.7 percent, faster than the market as a whole.

Last month, GM's stock sank to its lowest level in more than 50 years amid concerns about the rate at which all the U.S. automakers were burning through cash.

GM announced more plant closures in July and measures to increase liquidity, including asset sales and further job cuts.

In this difficult context, GM's board members gathered in Detroit for meetings as well as test drives. The directors focused primarily on financial issues at Tuesday's board meeting, Fisher said.

He said GM's management team -- including President Frederick Henderson, Vice Chairman Bob Lutz and Chief Financial Officer Ray Young -- were dealing with many problems they hadn't created and that would take time to fix.

Wagoner has been chief executive since 2000. Henderson was appointed president in March.

'It's a very big shift that won't turn on a dime,' said Fisher, a director since 1996. 'The world is going to have to wait and see that we're right on this issue.'