President Obama sets up task force to oversee GM, Chrysler restructuring

16 February 2009

US President Barack Obama will launch a presidential task force on restructuring the beleaguered auto industry rather than entrust a "car czar" with the job, an administration official said.

The task force will encompass a string of US government agencies, including the departments of treasury, labor, transportation, commerce and energy, as well as White House energy and economics officials (See: GM open to 'car czar'; US launch of Chevrolet Spark in 2011)

Treasury secretary Timothy Geithner and White House economic advisor Lawrence Summers will oversee the task force, the official said, a day before General Motors and Chrysler are scheduled to submit restructuring plans to the government.

Ron Bloom, a United Steelworkers Union adviser and former Lazard Ltd vice president, will join administration members on the team.

Representatives from cabinet departments and White House offices will serve on the presidential task force on autos along with Bloom, who was described by administration officials as an expert in restructuring who also has experience in manufacturing and in working with unions. While there was no immediate explanation why the idea was abandoned, Obama's approach will leave the auto industry overhaul in the hands of his closest economic advisers.

The task force puts an end to reports Obama would recruit a well-known figure from outside to serve as the so-called car czar. The president was under pressure to say who would handle the issue before tomorrow, when General Motors Corp and Chrysler LLC must give progress reports on plans to restructure as a condition of $17.4 billion in US treasury loans.