President Barack Obama’s administration has dropped the idea of appointing a “car czar” to oversee the automotive industry’s restructuring. Instead, Treasurey Secretary Timothy Giethner and Lawrence Summers, head of the National Economic Council, will together oversee the task force that will deal with the issue.
Geithner will be responsible for overseeing the $17.5 billion in loans between General Motors and Chrysler. The two automakers will be heading to Washington tomorrow to present their restructuring plans showing long-term viability to the new task force.
Ron Bloom, an assistant to the president of United Steelworkers and former investment banker will also be on board as a senior advisor to help handle auto industry related issues. It’s been previously reported that Steven Rattner, American financier and private equity investor and partner at Quadrangle Group in New York, will be Obama’s car czar. It is unclear whether Obama may ultimately appoint him as car czar.
General Motors is expected to either ask for more bailout money or pitch another option where it will file for Chapter 11 bankruptcy creating a new company.