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Report: Obama drops plans for industry ‘car czar’

 
4 1,808 views Feb 16, 2009
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The $500,000 limit is a far cry from the tens of millions of dollars paid to some execs

The $500,000 limit is a far cry from the tens of millions of dollars paid to some execs

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President Barack Obama has made no bones about his commitment to using the government to help prop up the ailing automotive industry, but his earlier plans to instate a ‘car czar’ to oversee the industry’s restructuring have reportedly been dropped.

The original bill passed for the Detroit 3 bailout actually called for multiple overseers to administer the funds, and whose job would also be to prohibit a carmaker merger or sale, inspect financial records of any carmaker or majority shareholder accepting funds, and to periodically evaluate the carmaker’s efforts and report their compliance.

Instead, Obama has reportedly decided to form a new task force to complete the role. The first clue was with the appointment of Treasury Secretary Timothy Geithner as his 'designee' for overseeing the bailout loans. A senior administration official has now revealed to Automotive News that there is in fact “no car czar”.

The new task force will likely be drawn from the departments of Treasury, Labor, Transportation, Commerce, and Energy, the National Economic Council, the White House Office of Energy and Environment and the Council of Economic Advisers and the Environmental Protection Agency.

There is no word yet on when Obama plans to unveil his strategy but an announcement is expected to come shortly after General Motors’ and Chrysler’s submission of viability plans to the Treasury tomorrow.



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Comments (4)

  1. ma_Odin avatar Odin Posted: 11/13/2008 4:51pm PST

    Obama where change happens... NOT
     
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  2. ma_PacificGatePost avatar PacificGatePost Posted: 11/13/2008 5:17pm PST

    DON’T KILL THE HEARTLAND

    It depends on HOW a bailout is structured, but one should be attempted.

    BAILOUTS ARE COMPLEX BEASTS, but Try something outside the box like this to save the U.S. Auto Industry - - -

    SOLUTION FOR DETROIT

    Toyota and Honda also depend on the same suppliers who feed GM and FORD. No need to let “Detroit” disappear.
     
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  3. ma_mburleigh8 avatar mburleigh8 Posted: 11/14/2008 6:08pm PST

    Sounds good to me, we need to hold the auto industy to a higher standard, and not allow them to slack off and wast $.
     
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  4. ma_Tornado avatar Tornado Posted: 11/15/2008 10:04pm PST

    I hate to see them fail, but I think a bankruptcy and reorg would be the best thing for them. There is little to no sign of them actually doing the necessary restructuring they need to do. All they are doing currently is trying to come up with more cash to burn.

    I'd much rather see all 3 file bankruptcy, reorganize in some fashion as leaner, meaner corporations, and even saw off several of my own body parts with a dull butterknife than see government bailouts (and the government "requirements" a.k.a. more control) or a "car czar."

    The "Detroit 3" would fall, get back up, dust themselves off, and get on with building vehicles. It may be sticky for a couple of months but the 3 corporations, their employers, their suppliers, their customers, and the American people as a whole would be better off if government keeps their damn noses out of it.
     
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