General Motors Corp. and Chrysler LLC press for late concessions from Detroit labor unions to work into turnaround plans that are due to the government on Tuesday. Congress has let them know they need to have a viable plan if they are to get any more money from the U.S. government and ultimately the American people.
President Obama has decided to give them a helping hand by killing the idea of a "Car Czar", and will now name a task force today to oversee the remaking of the U.S. auto industry.
According to a White House official, the Presidential Task Force on Autos and other Obama administration officials will act together 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 administration understands the importance of the American auto industry," said a White House official Sunday, speaking on condition of anonymity. "It wants to work with these companies as they seek to become viable and thriving businesses. But we're also clear-eyed about the magnitude of the restructuring going forward."
The team will be headed by Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers. It will include staffers from several agencies, including the departments of Transportation, Energy, Labor, Commerce and Treasury, and the Environmental Protection Agency.
The only outside expert hired by the administration so far is Ron Bloom, an adviser to the U.S. Steelworkers who had worked with unions in several industries on corporate restructuring and employee ownership plans.
Obama said Wednesday he's prepared "to offer serious help" to Detroit's auto industry, but only if its executives, workers and suppliers share the sacrifices necessary to keep the companies afloat in the worst U.S. market in decades. The White House official said no decisions on next steps for the industry, including Chrysler's $3-billion request, had been made yet.
The team already is reviewing a request for suppliers for up to $25.5 billion in federal aid, including more loan money to Detroit automakers to speed payments to suppliers. Steep cuts in production over the past few months have put many suppliers on the brink of collapse.
Source and more at USATODAY.com