Obama could appoint car 'czar' to oversee industry recovery

Posted Thu Nov 13 2008 2:55 PM by Nelson Ireson

Obama has a plan for the industry, but some insiders fear it may come too late

President-elect Barack Obama has made no bones about his commitment to using the government to help prop up the ailing automotive industry, and to oversee the likely complicated matter, he may appoint a car 'czar'. There are a number of candidates and no firm information on which might be front runners at this stage, but the idea itself is gaining traction even as the industry struggles to stay afloat.

Candidates ranging from Michigan Governor Jennifer Granholm to Georgetown University law professor Dan Tarullo, economic adviser Jason Furman and former Clinton administration Treasury official Joshua Steiner are being considered to fill the post, reports The Detroit News. A key consideration to the position, however, will be that it must be a person not only knowledgeable about the industry capable of administering the multi-billion dollar deal, but also a person capable of withholding any personal judgment on the industry for its current state.

Talks about possible aid for the automakers are still ongoing in Congress, and discussions between Obama and President Bush have so far failed to yield any progress. There is some concern in the industry that help may not come soon enough if it must wait for Obama to be sworn into office in January, especially at Chrysler, where CEO Bob Nardelli today said it would be 'very difficult' for the company to survive without aid. At any rate the outside window for Detroit is the second half of 2009, when General Motors has said it will likely run out of cash.

If Obama does appoint a car czar, the job would include the task of overseeing compliance with any terms or conditions placed on the loan money, in addition to deciding how the money will be allocated.

Reader Comments

Thu Nov 13 2008 4:51 PM
Odin says

Obama where change happens... NOT
Thu Nov 13 2008 5:17 PM
PacificGatePost says

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.
Fri Nov 14 2008 6:08 PM
mburleigh8 says

Sounds good to me, we need to hold the auto industy to a higher standard, and not allow them to slack off and wast $.
Sat Nov 15 2008 10:04 PM
Tornado says

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.

MotorAuthority