Car Czar: U.S. won’t go easy on CAFE because it has a bunch of money in GM

Task force Chairman Ron Bloom told reporters during an industry conference in Michigan today that the U.S. government has no interest in using its stake in General Motors Company to make a social policy such as offering more fuel-efficient cars or limiting auto emissions.

He said that the management of General Motors and Chrysler will be left to their board of directors. Bloom said that policies such as average fuel economy standards or CO2 emission regulations will be made separately by the Obama administration and will apply to the entire auto industry.

“To my knowledge we never said ‘gee, we ought to go easy on CAFE because we’ve got a bunch of money in GM,'” Bloom told reporters.

Both GM and Chrysler have received $65 billion in federal aid by the U.S. government, which owns 61 percent of GM and about 10 percent of Chrysler with the Canadian government.

– By: Omar Rana

Source: MSNBC