One of the latest ideas being kicked around by Congress and the White House is naming an "auto czar" to oversee how the taxpayer's money is spent on the bailout of The Big Three.
According to The Wall Street Journal (subscription required), "Negotiations over a government rescue of the Big Three automakers slowed Saturday as Congress and the White House debated over the role of an 'auto czar' who would oversee a restructuring of the industry."
Which restructuring is that? The one where GM (NYSE: GM) and Chrysler go through a prepackaged bankruptcy to cut union costs and debt? Or, the one where the Detroit firms get $34 million to retool their factories and negotiate with labor and creditors? Or, the one where GM and Chrysler merge?
The issues that are the most pressing for the American automotive industry are not how to supervise a restructuring. They are what form a restructuring will take, how much money will be needed, and what will happen if, in six months, the first bailout is financially inadequate.
At this point the auto czar really has nothing to be in charge of.
Douglas A. McIntyre is an editor at 247wallst.com.











Reader Comments (Page 1 of 1)
12-07-2008 @ 10:27AM
Elrod said...
It seems funny that the Whitehouse hasn't wanted any ties to the auto industry until now. The first quotes is to garner union concessions, and reorganize debt
12-07-2008 @ 10:29AM
Jerry said...
Yes, "WE THE PEOPLE" want oversight and rules since these incompetent auto American auto company have no idea how to construct a viable long range business plan. AND, YES,,, I would also really like to see the AIG managment team fired, fined and doing time in jell.
12-07-2008 @ 11:13AM
william schueler said...
We had 40 folks for xmas, and the conversation was the auto industries, it was a interesting that we agreed that the auto worker does not need the unions, the workers can decide for themselves how beet to help thier company. a state law for "workers right to work"LAW as as the south has and get ride of the union and save the industry. problem is not the union worker it is the :congress, and union. they are so in bed which each other, that they will continue to use the union worker and the general public if we continue to let them. the union and congress do not have our interest, except for our money. never hear in the congressional hearing any question how many $100,000,000,000.00 would be saved if the union is out and no more donation to congress. the accounting numbers we hear from industries and congress acountants is a top indicator OF THE "EDCATION SYSTEM". NO COE KNEW ANY NUMBERS ABOUT THIER COMPANIES, "ALWAYS HAD TO GET BACK" WITH BOGUS NUMBER LATER.
12-07-2008 @ 3:40PM
Sandy said...
I'll be the auto czar. The first thing I would do with GM is have Wagoner and his team of "yes men" leave; he and his men continue to keep an environment of all "yes men". GM is made up of 85 to 95% white men in management positions. Throughout Wagoner’s career at GM, women were being fired and demoted while the percentage of all "yes" men continued to grow. The “yes” men are active at the strip clubs and golf courses using company dollars when they should be working. The high percentage of “yes men” at GM is there despite the fact that women have became the largest customer in the auto industry buying 65% of the new car purchases and influencing over 85% of all car and truck purchases. The "Boys of Summer", a short movie clip GM spent big bucks to produce in order to toot their own horns in front of the “yes men” staff, are now the "Men of Destroying the Largest Corporation in the World".
12-07-2008 @ 7:15PM
Pat said...
Wow...SANDY YOU ARE ON TARGET !
I have said before that Wagoner when he departs should carry out with him the top three levels of Marketing, Advertising and Sales Mangers.
These YES MEN 9 & some WOMEN too) ran this company into the ground with hundreds of thousands paying the price with decimated retirement accounts.
We need Operating Standards like GE, you don't perform, you are out in short order ! Promotions to be based on PERFORMANCE only.
Years ago a top GM Executive was quoted, ''''Unfortunately, good, enterprising, smart employees leave GM EARLY''''"
We the tax payers are paying right now, now is the time to set this ship staright.
Welch, Perrot, some who left GM EARLY, where are you?