Obama Drops ‘Car Czar’ Idea for Auto Bailout
February 16th, 2009 at 1:22 pm - by admin
President Barack Obama’s original idea to implement a single “car czar” position slated with the task of overseeing the restructuring of the entire U.S. auto industry under the bailout package, has been replaced with the creation of a government task force in charge of the $18 billion in loans to Chrysler and GM.
Both Chrysler and GM will be expected to submit a viability plan to the stand-in task force by Tuesday, which will need to be approved in order to be eligible to maintain the bailout loans. The task force will be led by Lawrence Summers and Timothy Geithner, the head of the National Economic Council and Barack Obama’s U.S. Treasury Secretary respectively.
If General Motors’ viability plan is not accepted, the company will be forced to file Chapter 11 bankruptcy when the loan money is withdrawn.
The viability plans submitted by Tuesday will be required to answer a number of questions - including outlining details of agreements reached with the companies’ unions in order to reduce costs, and all further cost cutting.
Analysts expect GM to propose cutting out a number of brands - including, possibly the Hummer line to please the new environmentally-oriented government - citing GM’s previous claim that this brand was bubbling out.


