President Barack Obama will not now entrust a “car czar” with restructuring US auto giants but will launch a presidential task force on the crippled industry, an administration official said.
Treasury Secretary Timothy Geithner and White House economic advisor Lawrence Summers will oversee the task force, the official said, a day before General Motors and Chrysler must submit restructuring plans to the government.
The administration will also bring on Ron Bloom, a renowned restructuring expert to work at the Treasury, but the administration will not pick one single official to oversee the ailing “Big Three” auto giants.
“There will be no ‘car czar,´” the official said, on condition of anonymity.
Geithner will also be tasked with overseeing USD 17.4 billion in federal bailout agreements between the automakers and the US government, under the plan.
General Motors and Chrysler are required to submit extensive restructuring plans by February 17 to the government, after they accepted bailout money late last year.
The final plan that will serve as a basis for the Treasury’s decision to call in or extend the loans is due by March 31.