Monday, February 16, 2009

No Car Czar, No Cash Advance Without a Good Plan

No Czar for cash advance-gorged automakers

The United States government has already shelled out massive cash advance loans to players in the U.S. auto industry to keep them solvent. And after gorging themselves, GM and Chrysler are asking for seconds. Will President Obama continue to fatten up the insatiable on the taxpayers’ money? Surely someone else needs to take the reins of the auto industry if the problems are to be fixed, yes?

That isn’t going to happen yet. John Hughes reports for Bloomberg that President Obama decided not to name a "car czar.” What will happen for now is that Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers will head a task force on how to fix the industry. Early word on Geithner - tax snafu aside - has not been positive, so I’m not sure whether this decision fills me with confidence.

Pressure to name a “main man”

According to Hughes, President Obama 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 U.S. Treasury loans.” One thing that’s positive: those two diseased behemoths aren’t dictating policy here. ... click here to read the rest of the article titled "No Car Czar, No Cash Advance Without a Good Plan"

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