Report: 'Car Czar' Proposed to Oversee Auto Bailout

[rohan]

"Car Czar" would oversee and ensure proposed conditions of a bailout of U.S. automakers were met.


A proposed government "car czar" would oversee any bailout of U.S. automakers under terms being negotiated by the White House and Congress for extending billions in emergency loans to the auto giants, Reuters reported.

Sources familiar with the plan for oversight by an official within the executive branch said Saturday conditions were not final as Democratic leaders and the White House tried to cut a deal.

One leadership aide said both sides favored creation of a "car czar" role to ensure proposed conditions were met, Reuters reported. The funds are designed to last until March, giving the incoming Obama administration and the new Congress time to consider the issue anew.

Racing to seal a deal with the White House, Democratic congressional leaders dispatched aides Saturday to draft an emergency $15 billion aid package to pull Detroit's Big Three automakers from the brink of collapse.

Capitol Hill leaders prepared to sell yet another bailout to a skeptical Congress. It is an uphill battle: The anger is fresh over how the Bush administration used the $700 billion Wall Street rescue fund and lawmakers are questioning whether the once-mighty auto giants can survive.

Still, with Washington spooked by massive job losses that provided the latest evidence of a deepening recession, the White House said it was in "constructive discussions" with lawmakers in both parties on the assistance. House and Senate Democratic staff aides worked through the weekend to hammer out details, with votes on the plan expected in the week ahead.

The emerging measure would speed short-term help to General Motors Corp., Ford Motor Co. and Chrysler LLC, while empowering the government to order a wholesale restructuring of the industry and imposing tight restrictions on the Big Three, according to congressional officials and others close to the talks. They described the developing plan on condition of anonymity because the details were not final.

Press secretary Dana Perino said automakers must show they are willing to make tough business decisions before they can get taxpayer money. She says the White House is insisting that any money come from an existing fund set aside for the production of environmentally friendlier cars.
The White House also wants to make sure that before any money goes out, there is a good chance taxpayers would get paid back.

Pelosi said the billions of dollars that had been set aside to modernize plants to develop the green cars would be repaid "within a matter of weeks." Democrats said her hope was to include the funds in an economic recovery bill that lawmakers are expected to prepare for President-elect Barack Obama's signature shortly after he takes office.

Top executives from the Detroit automakers spent two consecutive days on Capitol Hill pleading for $34 billion in loans to help the industry survive.

The Associated Press contributed to this report.

http://www.foxnews.com/politics/2008/12/07/report-car-car-proposed-oversee-auto-bailout/

[Payman]

I think it's ridiculous to humiliate the car companies in the way they have, when they are only asking for a small fraction of what the government has thrown at the banks. We're talking about an industry that makes actual product, and employs (directly and indirectly) millions of North Americans.

[GoCougs]

LOL - what a mockery.

Just imagine how much worse Detroit will be (is such a thing possible) after the federal government demands that they make hybrids and electric cars.

Better they fail now than later.

[Soup DeVille]

LOL - what a mockery.

Just imagine how much worse Detroit will be (is such a thing possible) after the federal government demands that they make hybrids and electric cars.

Better they fail now than later.

"I drove to DC to get a check, but all I got was another monkey on my back."

[the Teuton]

Just what we need, more bureaucracy!

Here's a school project my friend made the other week about this whole thing.  I tend to agree with him on this.  TB3 just need to file for reorganization now.

http://www.youtube.com/watch?v=EoDvMAcC3Yk

[Raza]

Where do I send my resume, and how much does it pay?

[Tave]

I love how the government feels totally comfortable throwing the word "czar" around like it's some sort of joke. We've got Drug Czars, Intelligence Czars, Terrorism Czars... These people wield enormous power, and it's almost as if the fed is rubbing it in our faces.

[SVT666]

People aren't not buying American cars because they aren't green enough, people aren't buying American cars because until recently they made shit.

[280Z Turbo]

People aren't buying American cars because they aren't green enough, people aren't buying American cars because until recently they made shit.

Politicians are not car experts, although they think they are.

[goldenlover1101]

it is unfair to publicly humiliate the car companies who are asking for a LOAN and not the banks that got 750 billion! dollars in a bailout. We were discussing this today. To give every citizen over 18 in the country 1 million dollars, the government would only spend around 350 million dollars and that would be one hell of a stimulus package. People would buy houses, invest, save, pay off mortgages, buy cars, etc. Why do the banks need 750 billion? I didn't see them pay off everyone's mortgages like they sure of hell could of. Anyway, the word czar sounds way too communist for our politicians to be throwing it around all willy nilly.

[2o6]

it is unfair to publicly humiliate the car companies who are asking for a LOAN and not the banks that got 750 billion! dollars in a bailout. We were discussing this today. To give every citizen over 18 in the country 1 million dollars, the government would only spend around 350 million dollars and that would be one hell of a stimulus package. People would buy houses, invest, save, pay off mortgages, buy cars, etc. Why do the banks need 750 billion? I didn't see them pay off everyone's mortgages like they sure of hell could of. Anyway, the word czar sounds way too communist for our politicians to be throwing it around all willy nilly.

You mean billion, right?


Still, that's an interesting proposition. $1million for every person would jumpstart the economy and improve living conditions more than this $750 bailout.........it'd also be cheaper as well.

[the Teuton]

I think someone should bail me out so I can buy one of their cars...like a Viper.  That will jumpstart the economy.

[280Z Turbo]

You mean billion, right?


Still, that's an interesting proposition. $1million for every person would jumpstart the economy and improve living conditions more than this $750 bailout.........it'd also be cheaper as well.

I can haz hyper-inflation?

[2o6]

I can haz hyper-inflation?

We'd be able to spend $1 billion at Mcdonalds, and only buy a happy meal.

[goldenlover1101]

inflation would be a concern and I am not an economy specialist but I don't see how it would be worse than pumping 750 billion into the banks. Its still somewhere being placed in the economy, whether through CEOs or mortgages (which I haven't seen yet0. And yes I mean billion, not million.

[Raza]

I'd be worried about inflation as well, were it not for the raging worry of deflation everyone keeps talking about; clearly the banks are still too hesitant. 

[goldenlover1101]

yes, the influx of money has not affected consumers in the least with more lending and thus no stimulation to the economy. So far: FAIL

[MX793]

Anyway, the word czar sounds way too communist for our politicians to be throwing it around all willy nilly.

Yeah, and they are using it way too often too.  How about investing in a thesaurus and mixing it up a little?  What about Car Kaiser?  Or Automotive Autocrat?  Motorcar Monarch?

BTW, I wouldn't associate the czars with the communists.  It was the czars that the communists fought against and overthrew.

[goldenlover1101]

Yeah, and they are using it way too often too.  How about investing in a thesaurus and mixing it up a little?  What about Car Kaiser?  Or Automotive Autocrat?  Motorcar Monarch?

I like car autocrat

[280Z Turbo]

Oh, and giving all 300 million Americans 1 million dollars would cost $300,000,000,000,000.

[goldenlover1101]

Slight error in my math, still a good idea though

[sportyaccordy]

Politicians are not car experts, although they think they are.

Politicians aren't economic experts either. When you think about it, it's kind of funny. 35% of my damn paycheck funny

[Soup DeVille]

Yeah, and they are using it way too often too.  How about investing in a thesaurus and mixing it up a little?  What about Car Kaiser?  Or Automotive Autocrat?  Motorcar Monarch?

BTW, I wouldn't associate the czars with the communists.  It was the czars that the communists fought against and overthrew.

I would associate Czars with monarchs who answer to nobody. Its a shortened version of Caesar. Its a bad descriptor any way you look at it.

[MX793]

Politicians aren't economic experts either. When you think about it, it's kind of funny. 35% of my damn paycheck funny

I'd wager many high level (federal level) politicians aren't really experts in anything except on how to give BS speeches (which they pay somebody to write most of the time) and get elected.