Obama to appoint team for auto recovery

[xcel]

“We need an auto industry in this country.”

Justin Hyde – Detroit Free Press – Feb. 15, 2009

The Big 3’s troubles may get worse.

A politico making decisions for the domestic automobile industry? This one has Bad written all over it. -- Ed.

WASHINGTON -- President Barack Obama will name a task force Monday to oversee the remaking of the U.S. auto industry, as General Motors Corp. and Chrysler LLC press for late concessions to work into turnaround plans due to the government on Tuesday.

According to a White House official, the Presidential Task Force on Autos and other Obama administration officials will act together instead of a single car czar in deciding whether GM and Chrysler are making sufficient progress to keep the $17.4 billion in loans they already have received and field any requests for additional aid, including Chrysler’s urgent bid for an additional $3 billion.

The team will find itself facing a six-week deadline to make several critical choices by March 31, including deciding whether bankruptcy could be used by one of the automakers to revamp business. David Axelrod, Obama’s chief adviser, did not rule out bankruptcy when asked about it today...

“There are millions of lives, livelihoods that depend on it. Not just at the auto companies, but spin-off manufacturers, dealers and so on. So we have a real interest in seeing the auto industry survive.” ... [Read More]

[xcel]

Hi All:

___GM’s response to the car czar...

GM Statement Regarding the Creation of a Presidential Task Force on Autos

GM welcomes the creation of a Presidential Task Force on Autos. We expect to meet soon with this team to share GM’s detailed restructuring plan to ensure our long term viability and to meet the requirements of the U.S. Treasury loan agreements.
Longer term, we see an opportunity to establish a constructive working relationship with the Task Force that strengthens understanding of our industry across the Federal government. We believe this Task Force can help the Administration and Congress to develop integrated policies that will support our nation’s manufacturing and technology base and overall competitiveness.

___Good Luck

___Wayne

[jkp1187]

Originally Posted by xcel

A politico making decisions for the domestic automobile industry? This one has Bad written all over it. -- Ed.

No joke. This plan has "British Leyland" written all over it.

[jimepting]

This is THE quandery isn't it? The American people won's stand for giving government money without some oversight - justified if the first TARP(sp?) is any indicator - but that just stiffels creativity and risk taking. Damned if we oversee, damned if we don't!

[Chuck]

My take is to have the Feds unleash consultants on GM and Chrysler...experts like Lee Icocca to shake up the organization and esp the top of the management.