Ron Bloom was the man in charge of America’s automobile bailout back in 2008. Earlier this week, Mr. Bloom said that he will be stepping down and leaving his position in the White House.

“We’ve faced many tough choices and dealt with numerous challenges over the past two and a half years—from restructuring the American auto industry to developing fuel-efficiency standards,” Bloom said in the statement.

Some of Mr. Bloom’s other efforts included working with President Barack Obama on the new 54.5 mpg Corporate Average Fuel Economy mandate as well. Then of course, prior to that, Bloom helped bail out General Motors and the Chrysler Group. After the bailout, Bloom was Obama’s top manufacturing advisor.

“Ron Bloom’s leadership within the President’s Auto Task Force helped America’s auto industry steer toward the road to recovery,” said General Motors’ vice president of global public policy, Bob Ferguson. “As a result, the prospects look bright for auto manufacturing to contribute toward jobs and a stronger economy for years to come.”

Bloom, who is now 56, will be ending his post at the end of this month so he can return to his home in Pittsburgh.

- By: Chris Chin

Source: Automotive News

Earlier this afternoon, Chrysler announced that it has repaid its outstanding $7.6 billion U.S. and Canadian government loans.

President Barack Obama has released his statement regarding Chrysler’s repayment and here is what he said:

Chrysler’s repayment of its outstanding loans to the U.S. Treasury and American taxpayers marks a significant milestone for the turnaround of Chrysler and the countless communities and families who rely on the American auto industry. This announcement comes six years ahead of schedule and just two years after emerging from bankruptcy, allowing Chrysler to build on its progress and continue to grow as the economy recovers. Supporting the American auto industry required making some tough decisions, but I was not willing to walk away from the workers at Chrysler and the communities that rely on this iconic American company. I said if Chrysler and all its stakeholders were willing to take the difficult steps necessary to become more competitive, America would stand by them, and we did. While there is more work to be done, we are starting to see stronger sales, additional shifts at plants and signs of strength in the auto industry and our economy, a true testament to the resolve and determination of American workers across the nation.

- By: Omar Rana

While the White House today congratulated General Motors on its announcement of investing $2 billion in 17 plants in eight states creating new jobs, it said that the outcome is evidence that the government’s ‘tough love”‘worked.

Click here for GM’s announcement on investing $2 billion in U.S. assembly and component plants.

In a White House blog post today, Ron Bloom, the former auto czar, said that the 4,000 jobs to be added or retained by GM were due to the tough conditions imposed by the administration on the government’s $49.5 billion bailout of the company.

In the post titled ”How Tough Love Averted Catastrophe & Led to 4,200 New American Jobs,” Bloom said:

President Obama took office amidst the worst recession in a generation and nowhere was this devastion felt harder than in the American auto industry and the communities it has supported for decades. In the year before GM and Chrysler filed for bankruptcy, the auto industry shed over 400,000 jobs.

Facing this situation head on, the President made a bold and, at the time, politically unpopular choice: Despite calls from critics to simply let these companies – and the entire American auto industry – crumble, he refused to allow these companies to fail. Had the Administration failed to intervene, conservative estimates suggest that it would have cost at least an additional one million jobs and devastated vast parts of our nation’s industrial heartland.

- By: Omar Rana

Source: White House (via Detroit News)
Image Source: Official White House Photo by Pete Souza

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

After successfully getting General Motors Company and Chrysler Group LLC out of bankruptcy protection, the Obama administration said that it is now ending the government-financed warranty program for the two automakers. Ron Bloom, the head of the auto task force, told a House Judiciary subcommittee about the decision in testimony yesterday, reports Automotive News.

“With the successful emergence of the new companies, consumers can now feel assured that the companies have the financial wherewithal to meet their warranty commitments on a continuing basis,” Bloom said in his prepared testimony.

The U.S. invested $641 million to fund the warranty program which has been returned to the Treasury along with interest payments, Bloom said. Bloom did not say if any of the two companies tapped into the funds.

A GM spokesman said that GM did not use the funds and a Chrysler spokesman said that the company does not give out warranty figures.

- By: Omar Rana

Photo Credit: Official White House photo by Pete Souza (via Flickr)

Ron Bloom, a senior adviser to the Obama administration’s auto task force, said that the group had no plans to pump more money into General Motors and Chrysler and that the public had a “reasonable probability” of getting their money back.

Bloom faced numerous questions by the Senate Banking, Housing and Urban Affairs Committee about the roughly $80 billion in federal aid given to the automotive industry . He said the Obama administration’s had given the two automakers “a chance to become viable, competitive businesses with bright futures.”

“We strongly believe this is the last money that GM will require. I cannot make a promise about the future but I can assure you that it has been a vigorously debated and thought about question,” Bloom said.

Bloom said that the White House is a ”reluctant shareholder” of GM and will stay clear of business decisions. He said that the government had no say in the recent decisions of GM and Chrysler closing dealerships. He said that cutting dealers was one of the most ”deep and painful sacrifices from all stakeholders,” including the UAW and bondholders.

- By: Omar Rana

Source: MSNBC

Chief auto adviser to the U.S. Treasury Department, Steve Rattner, said Friday that GM and Chrysler may need “considerably more” aid than the $21.6 billion the two automakers have requested. Chrysler is seeking another $5 billion while GM is asking for another $16.6 billion. Rattner also gave the strongest hint that the Obama administration will pump more money into the auto industry.

In an interview with Bloomberg Television’s “Political Capital with Al Hunt,” Rattner said that the two the amount the two automakers are looking for “could be considerably higher.”

“What they’ve asked for depends on them achieving plans that are somewhat ambitious,” Rattner said, “We haven’t finished analyzing, and I’m not here to pronounce on them. But like all management teams, they tend to take a reasonably — slightly perhaps — optimistic view of their business.”

Rattner said that Obama’s administration may return to Congress to ask for money for the auto industry and said that it may be difficult to win more money from Congress.

- By: Omar Rana

Source: Detroit News

Steven Rattner, the U.S. Treasury’s main advisor when it comes to the automotive industry, said today that Obama’s auto task force is avoiding bankruptcy as an option for GM and Chrysler. The news comes just days after the auto task force hired bankruptcy lawyer Matthew Feldman to advise it on its options.

“Bankruptcy is not our goal,” Rattner said in an interview with Detroit Free Press. “I”ve been in and around bankruptcy for 26 years as part of my private-sector work. It is never a good outcome for any company, and it”s never a first choice.”

Rattner said that even though bankruptcy is “sometimes necessary in order to solve problems,” the auto task force is focused on solving the auto industry problem outside bankruptcy.

He said that the auto task force is moving quickly to meet the March 31 deadline but said that decision on additional government loans for GM and Chrysler could come at a later date. Both automakers are seeking an additional $21.6 billion in aid.

- By: Omar Rana

Source: Detroit Free Press

According to a press release by New York law firm Willkie Farr & Gallagher LLP, President Obama’s auto task force has hired bankruptcy lawyer Matthew Feldman to advise it on its options.

The firm said that Feldman will be responsible for advising the U.S. Treasury Secretary Timothy Geithner and the National Economic Council Lawrence Summers on “reorganization efforts by auto manufacturers and suppliers. Willikie said that Feldman will leave the firm by the end of this month to start his position in Washington.

The auto task force faces a March 31 deadline to determine whether or not GM and Chrysler can be financially viable in the long-term and whether or not they deserve additional government aid. The two automakers are looking for another $22 billion in government loans.

The auto task force was in Detroit earlier this week meeting with the two automakers and UAW President, Ron Gettlefinger.

We’re just 17 days away from March 31 and this is beginning to be a nail-biter for us.

- By: Omar Rana

Source: Reuters

While some of you are wondering where our visitor zermatt is (zermatt being a very analytical individual who we feel is a great addition to our community), we’re guessing he’s unwinding after a very tiring visit to Detroit on Monday where President Obama’s auto task force visited General Motors and Chrysler.

Either way, the auto task force has left Detroit and we’re all left wondering – “so what did they think?” Are they going to call back $17.4 billion or are GM and Chrysler going to get additional loans that can total up to $21.6 billion.

According to AutoObserver, the auto task force, none of whom have any auto industry experience and happen to own foreign made vehicles, are not providing any hint about their thoughts on their Detroit visit or what they plan on doing for GM and Chrysler’s financial situation once the March 31 deadline arrives.

All we know is they visited GM executives and test drove a Chevrolet Volt, visited Chrysler’s Nardelli/LaSorda/Press and a Dodge pickup plant, followed by a two-hour meeting with UAW President Ron Gettlefinger.

Obama’s administration told reporters that the trip “was a success and the White House understands the need for urgency and deliberation and the task force will work ‘around the clock’ on industry issues.”

GM’s said that it was “pleased to host the task force so they could experience firsthand the new products and technologies that are an integral part of GM’s near- and long-term competitiveness. We look forward to continuing to support the efforts of the task force as they move quickly to address their critical tasks.”

Guess we’ll all find out the outcome on March 31.

Source: AutoObserver

As we told you last week, President Barack Obama’s auto task force will be headed to Detroit today to meet with executives from General Motors and Chrysler. Advisers Steve Rattner and Ronald Bloom will visit GM’s technical center in Warren and will also pay a visit to Chrysler’s truck assembly plant. They will also hold a meeting with UAW President Ron Gettelfinger.

According to White House officials, the trip will also include a trip to GM’s test lab where the Volt is being developed. GM has also set up a test drive in the Volt prototype hoping to impress the auto task force. We wonder if Chrysler will setup a test drive of their 200C EV.

So far the advisers have spent more than two weeks (allegedly working day and night) holding meetings with industry executives and analysts.

GM and Chrysler are seeking up to $21 billion in additional aid. The two have already received a total of $17 billion in government loans. On March 31, President Barack Obama will decide to approve or reject restructuring plans that the two companies submitted in February.

Source: Detroit News

According to White House spokeswoman, Barack Obama’s administration is working “around the clock” to form a solution to the problems being faced with General Motors, Chrysler and the auto industry.

“The administration is very mindful of the challenges in the auto sector,” the spokeswoman said. “Our team is working around the clock to develop the most thoughtful approach possible to the situation.”

Leaders from Obama’s auto task force will be heading to Detroit next week to meet with auto industry and labor officials. They will discuss the danger of an immediate collapse of GM and Chrysler if loans do not come by the end of this month.

Steven Rattner and Ron Bloom will be heading to Detroit with members of the U.S. Treasury. A spokesman from the White House said that final details of the trip are still being worked out.

Source: Detroit Free Press

During his meeting with Obama’s auto task force, Fiat CEO Sergio Marchionne said that his company will “add value” to Chrysler through an alliance supported with government loans. After his meeting with Steve Rattner and Ron Bloom, advisers to the U.S. Treasury, Marchionne told reporters that he was encouraged by the groups engagement with the auto industry problems.

“We think we are adding significant technology and products to the offerings of Chrysler,” Marchionne said. “With them they get a fair chance” of making it out of their current situation, reports Automotive News.

Marchionne said that in return for a 35 percent of Chrysler Fiat will provide “cash equivalents” consisting of small car platforms and fuel-efficient technologies. He said that Fiat will not inject any cash into Chrysler.

Chrysler so far has received $4 billion in government loans and says it needs another $5 billion by the end of March.

According to a Toyota spokeswoman Martha Voss, a top U.S. Toyota executive will meet with Obama’s auto task force next week. She emphasized that the Japanese automaker is not seeking any loans from the U.S. government and is not trying to influence the U.S. Treasury Department’s decision for the U.S. auto industry

Voss said that Jim Lentz, president of Toyota Motor Sales in the U.S., will meet with the task force in Washington.

“This is really an introductory visit,” Voss told the Detroit News. “It is common practice for us to ‘make the rounds’ when a new administration and a new Congress come into power. We want to introduce ourselves and talk broadly about the state of the industry.”

Source: Detroit News

Following Chrysler’s meeting with Obama’s auto team yesterday, General Motors today wrapped up a 6-hour meeting with members of U.S. Treasury Department and the White House National Economic Council. GM’s CEO Rick Wagoner, COO Fritz Henderson and CFO Ray Young were among the executives that attended the meeting. Among the points discussed were GM’s request for an additional $16.6 billion in aid. Of course, we’re pretty sure that GM’s fourth-quarter results were also discussed.

According to GM spokesman Greg Martin, the meeting “was just the beginning of the hard work ahead for GM and the President’s team.”

“We found a genuine willingness among the Task Force to understand our business, industry challenges, and GM’s restructuring plan,” said Martin. ”We look forward to working closely with the task force as we continue our efforts to transform GM”

Steve Rattner, the head of the auto team and Ron Bloom, a special adviser to the Treasury on autos, attended as well.

We’ll bring you more details as we get them.

Source: Detroit News

Chrysler’s main executives will be meeting with the Obama auto task force today. CEO Bob Nardelli, vice chairman Tom LaSorda and CFO Ron Kolka will all be meeting with the members of the U.S. Treasury Department’s auto team and the White House National Economic Council. No word on whether Jim Press will also attend.

The guys that Chrysler need to watch out for? Attending the meeting will be U.S. Treasury Secretary Timothy Geithner, former Wall Street financier Steven Rattner and Ron Bloom, who is a special adviser to the U.S. Treasury on the auto industry.

Today’s meetings will include going over Chrysler’s long-term viability plan and its request for an additional $2 billion in loans. Chrysler said yesterday that cash could fall to $1.3 billion at the beginning of April, below the $2.5 billion it needs to operate.

General Motor’s executive team will meet with the Obama auto task force tomorrow.

Source: Detroit News