CHICAGO - President Barack Obama has decided to form a government task force to oversee the restructuring of the struggling US auto industry instead of naming a 'car czar' with sweeping powers, a senior administration official said on Sunday.
Automakers working on plan
The administration official said the automakers were expected to submit their restructuring plans on time and that government teams were working with the companies and their stakeholders to resolve remaining issues.
'We will continue to engage with them on a daily basis, as we have been over the course of the last two months, to work through various issues,' the official said.
Mr Obama, who last week won congressional approval of a massive economic stimulus program, is appointing Treasury Secretary Timothy Geithner as his 'designee' for overseeing auto bailout loans and as co-head of the new high-level panel along with White House economic adviser Lawrence Summers, the official said.
But Mr Obama, who is spending the Presidents Day holiday weekend in Chicago, has dropped the idea of having a single 'car czar' empowered to handle the politically sensitive task of revamping of the auto industry.
'There is no 'car czar',' the official said, speaking on condition of anonymity.
There was no immediate word on when Mr Obama plans to unveil his strategy, but General Motors Corp and Chrysler, are required to submit new turnaround plans by Tuesday showing how they can be made viable after receiving US$13.4 billion in emergency aid at the end of Bush administration.
The clock was ticking on crucial talks between between GM and the United Auto Workers, which resumed on Sunday after negotiations had broken off.
If GM cannot win deals to cut its debt and costs, the automaker would be left reliant on an expanded bailout from the Obama administration or forced to consider bankruptcy. -- THOMSON REUTERS
