Monday, February 16, 2009
White House confirms auto task force
David Shepardson / Detroit News Washington Bureau
WASHINGTON -- The White House confirmed Monday it is naming a Presidential Task Force on Autos, rather than an auto czar to oversee the restructuring of General Motors Corp. and Chrysler LLC.
The task force will be co-chaired by Treasury Secretary Timothy F. Geithner and Lawrence Summers, director of the White House National Economic Council.
Geithner will be the president's designee, overseeing the $17.4 billion in loans for GM and Chrysler. He also has veto power over any proposed auto transaction over $100 million and can call back the loans on March 31 if the companies haven't made enough progress.
"Well, the approach that the administration has settled on I think provides a vast amount of expertise that crosses a number of governmental agencies and departments, and brings in the vast amount of experience that the administration has to deal with the auto restructuring -- any auto restructuring issues," Robert Gibbs, White House Press Secretary, told reporters aboard Air Force One. "So I think that the model that's been set up with Secretary Geithner and Dr. Summers is one that will help coordinate throughout the federal government the responses that include energy, transportation, as well as the economic team."
The Presidential Task Force on Autos will be drawn from a number of cabinet departments, including Treasury, Labor, Transportation, Commerce, and Energy, the National Economic Council, the White House Office of Energy and Environment, the Council of Economic Advisers and the EPA.
Gibbs said it brings "their expertise and understanding of a lot of complex issues together in a presidential-level task force that can deal with the many challenges that this is going to face over the course of the next several months."
Gibbs also praised Ron Bloom, a special advisor to the United Steelworkers president, who is to be named as a special advisor, calling him "somebody who has vast credibility on a lot of these issues will be a big boost for this task force."
The inter-agency is already reviewing an urgent request from auto suppliers for at least $18.5 billion in emergency aid by month's end.
The Obama Administration wants "a strong, vibrant auto industry as the basis for our manufacturing in this country is extremely important. We have to ensure that the cars of tomorrow are built here by Americans, for Americanism" Gibbs said.
The announcement comes one day before GM and Chrysler submit restructuring plans to the Treasury Department.
"Obviously we are anxious to see the plans that will be offered by the auto companies. We've had teams of people from our economic team working on this issue throughout the transition, in the first few weeks of this administration. So we're anxious to take a look at the plans, understanding that it is extremely important to have a strong and viable auto industry," Gibbs said. "Obviously that is likely to require some restructuring to ensure its viability, and we think some of that will be in those plans and we look forward to going through and analyzing that in order to see where the companies feel like they are and what the most important next steps are for both the American economy, for the workers, as well as the companies."
Sen. Debbie Stabenow, D-Lansing, praised the announcement.
"The announcement shows how serious the administration takes the issues facing our auto manufacturers and suppliers, and the need for a team illustrates the complexity of the challenges the industry faces," she said. "I look forward to working with them to ensure the viability of our manufacturing economy, and the millions of middle-class jobs it produces."
Rep. Sander Levin, D-Royal Oak, said the task force is a wise course.
"This is an issue of such national importance that really the full array within the administration and top leadership have to be intimately involved," Levin said.
You can reach David Shepardson at (202) 662 - 8735 or dshepardson@detnews.com.
