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The absurd notion of an 'auto czar'

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.

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Last updated: November 26, 2009: 07:45 AM

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