Autoblog

House votes to end car czar's tenure

Jonathon Ramsey — Thu, 22 Dec 2011 08:31:00 EST

The czars - all of them - are dead in the House of Representatives. Even though every "czar" position in government had already been vacated, the House passed a spending bill that officially eliminated the role and forbids the White House from naming more. In some cases, automotive and banking bailouts and executive pay especially, the czar himself was as polarizing as the job he had to do, and the enduring, transformative effects of their work can explain why politicians might target them.

However, just in case you hear of the role again or you read about a policy head who's a czar in all but name (and assuming the Senate passes the bill), you should know that you can't really get rid of all the czars since there's no precise definition of one. Most "czars" get that moniker from journalists even though they have proper, long-form titles. And if you take the position that a czar is an appointee who hasn't been confirmed by the Senate, then czars go all the way back to Woodrow Wilson and World War I, and all but five presidents since then have had czars in their administrations.

The vote eliminated nine of the 33 positions that fit that latter definition, the beloved empty seat of our former car czars being one of them. We have a feeling at least one of those czars will be making news for a while, though - Ron Bloom's been pretty quiet, but it looks like Steven Ratter still has a few things to get off his chest...

House votes to end car czar's tenure originally appeared on Autoblog on Thu, 22 Dec 2011 08:31:00 EST. Please see our terms for use of feeds.

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Ex-car czar Rattner says Auto Task Force should have pushed for more cuts

Chris Shunk — Fri, 16 Dec 2011 14:45:00 EST

Filed under: Government/Legal, Chrysler, GM, UAW/Unions

The government's Auto Task Force was given the difficult task of saving General Motors and Chrysler at a time when the credit markets were frozen and the economy was in chaos. The team ultimately got the job done by ushering the two iconic companies through extraordinarily short bankruptcies.

Former car czar Steven Rattner headed the Task Force through those tough times, and though he characterizes the bailouts as a success, he feels the United Auto Workers could have given more. The Detroit News reports that Rattner told the Detroit Economic Club that the Task Force should have insisted on UAW wage cuts. Rattner added that the wages of UAW workers is still higher than that of the foreign competition.

Rattner also pointed out that bondholders weren't asked to sacrifice enough, adding that a traditional bankruptcy would have meant that those investors would have likely lost everything.

In total, the U.S. government spent $82 billion in taxpayer money to bailout GM and Chrysler. That's a whole heap of coin, and the U.S. government estimates that it will lose $14 billion when all of its GM shares are sold. Even so, Rattner estimates that the bailout saved "millions" of manufacturing jobs.

Ex-car czar Rattner says Auto Task Force should have pushed for more cuts originally appeared on Autoblog on Fri, 16 Dec 2011 14:45:00 EST. Please see our terms for use of feeds.

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Ron Bloom, U.S. auto advisor, leaving White House

Jeremy Korzeniewski — Wed, 10 Aug 2011 14:32:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs

Ron Bloom, the man who replaced Steve Rattner as the so-called Car Czar advising the White House on decisions impacting the auto industry, is reportedly leaving his post by the end of the month. We're not surprised - General Motors and Chrysler successfully emerged from their government-sponsored bankruptcies and the government's money has been paid back well ahead of schedule.

Plus, the 56-year-old Bloom's job description as Car Czar was eliminated in April of 2011 during a huge string of budget cuts, and since that time, Bloom has merely been serving as an auto adviser to President Barack Obama. His last major effort was in helping to establish the latest Corporate Average Fuel Economy standards.

Ron Bloom, U.S. auto advisor, leaving White House originally appeared on Autoblog on Wed, 10 Aug 2011 14:32:00 EST. Please see our terms for use of feeds.

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Ex car czar Bloom asked by Congress to clarify statements made under oath

Zach Bowman — Fri, 08 Jul 2011 13:32:00 EST

Filed under: Government/Legal

Ron Bloom, the former car czar under President Barack Obama, is being asked to clarify some of the statements he made under oath to the United States Congress last month. Three members of the Congressional oversight committee are specifically interested in the Bloom's denial that he remarked "I did all this for the unions" during a farewell speech. Representative Dan Burton, R-Ind., questioned Bloom about the statement at a hearing of the Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending. Now Congress is giving the former car czar a chance to correct his statement.

Why should Bloom feel the need to change his tune? As it turns out, both The Detroit News and Steven Rattner, Bloom's predecessor, recorded the statement for posterity. The quote was featured in an article in The Detroit News and in Rattner's book, Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry. As Automotive News points out, Rattner claims that Bloom made the statement as a joke.

Ex car czar Bloom asked by Congress to clarify statements made under oath originally appeared on Autoblog on Fri, 08 Jul 2011 13:32:00 EST. Please see our terms for use of feeds.

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Report: 'Car Czar' post nixed as part of federal budget deal

Chris Shunk — Tue, 12 Apr 2011 14:26:00 EST

Filed under: Etc., Government/Legal, Earnings/Financials

Last week, the government avoided a costly shutdown by cutting $38 billion from the 2012 federal budget. The American people are just now hearing what those cuts consist of, and it appears the auto industry and industry regulation have been affected.

The Detroit News is reporting that the currently vacant Car Czar posts was among the positions that didn't make the cut. The post was last held by Ron Bloom (above), Senior Adviser to the Secretary of the Treasury, who left the job in February. The Car Czar was originally appointed to oversee the government's investment in the industry in the wake of the bankruptcies of General Motors and Chrysler.

We're guessing the task force position won't be missed much by the auto industry, but a $408 million cut from a $ 2.3 billion program to research fuel efficiency technology might be. Also getting the axe? A whopping $2.9 billion from light rail initiatives and $37 million from a program that advocates seatbelt usage.

[Source: The Detroit News]

Report: 'Car Czar' post nixed as part of federal budget deal originally appeared on Autoblog on Tue, 12 Apr 2011 14:26:00 EST. Please see our terms for use of feeds.

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Report: Ex 'car czar' Rattner forcasting 14M sales this year

Jeff Glucker — Thu, 27 Jan 2011 08:32:00 EST

Filed under: Car Buying

Steven Ratner, the ex-Car Czar, has a healthy prediction for US automotive sales this year. Ratner believes the magic number will be 14 million for 2011. In 2012, the number will climb to 15 million, per Ratner's estimates. Why the optimism?

Ratner sees shrunken fleets, improved business conditions in Detroit and signs of sustained recovery in the US economy. Prior to ousting Rick Wagoner at General Motors, the automaker would only be able to make a profit in an environment when 16-17 million cars were being sold. Now they have been reworked and profits can be produced from 10-11 million sales per year. Ratner believes that Chrysler is following the same pattern as well.

If Steven Ratner's estimates are true, it would be a strong sign that our economy is heading in the right direction. For what it's worth, the National Automobile Dealer Association analysts are predicting a more conservative climb to just under 13 million units sold in 2011. Who will be correct? Who knows... but if either prediction comes true, we'll be in better shape than we were just a few years ago.

[Source: Ward's Auto | Image: Neilson Barnard/Getty]

Report: Ex 'car czar' Rattner forcasting 14M sales this year originally appeared on Autoblog on Thu, 27 Jan 2011 08:32:00 EST. Please see our terms for use of feeds.

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Followup: Ex-car czar Rattner to speak in Detroit after all?

Zach Bowman — Wed, 10 Nov 2010 18:01:00 EST

Filed under: Government/Legal, Celebrities

Let's try this again. After having his invitation to speak at the Detroit Economic Club rescinded last month, Steven Rattner, the former auto advisor to the Obama Administration, will get another chance to speak to Detroit. The Automotive Press Association is now hosting a lunch where Rattner will speak with members of the media on November 15, just three days before General Motors launches its IPO.

The APA says that Rattner generated quite a bit of automotive news over the past year, and that it only makes sense for the organization to give him a chance to speak directly to local news outlets.

We doubt the former car czar will answer too many hard-hitting questions, though. Rattner is currently on a tour to promote his new book, "Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry."

[Source: The Detroit Free Press | Image: Neilson Barnard for Fortune Magazine/Getty Images]

Followup: Ex-car czar Rattner to speak in Detroit after all? originally appeared on Autoblog on Wed, 10 Nov 2010 18:01:00 EST. Please see our terms for use of feeds.

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Report: Ex-car czar Rattner nears SEC settlement

Zach Bowman — Thu, 14 Oct 2010 11:01:00 EST

Filed under: Government/Legal

According to Reuters, the Securities and Exchange Commission is set to settle with the former head of the Obama Administration's auto task force, Steven Rattner. Earlier this year, the SEC charged Rattner with participating in a pay-to-play pension program, but the commission is expected to announce today that the former car czar has agreed to pay a fine of more than $5 million and accept a multi-year ban from the securities industry.

New York Attorney General Andrew Cuomo has led an investigation into fraud surrounding the state's $132 billion pension fund that has resulted in seven guilty pleas. One of those pleas came from the former New York comptroller Alan Hevesi, who was charged with corruption.

Rattner, meanwhile, has been charged with unscrupulous activities associated with Quadrangle, LLC - a private equity fund he co-founded in 2000. The SEC alleges that the investment group gave kickbacks to officials if they directed state pension money into the fund. Since then, Quadrangle has agreed to pay $12 million in fines associated with that scheme. Rattner, meanwhile, missed out on those proceedings because he no longer worked for the fund at the time.

[Sources: Reuters, CNN Money | Image: Neilson Barnard/Getty for Fortune Magazine]

Report: Ex-car czar Rattner nears SEC settlement originally appeared on Autoblog on Thu, 14 Oct 2010 11:01:00 EST. Please see our terms for use of feeds.

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Report: Auto Czar Montgomery stepping down

Zach Bowman — Mon, 14 Jun 2010 15:57:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs

Ed Montgomery, the gentleman who helped usher General Motors and Chrysler through some of the most difficult times in both companies' histories, has stepped down from his position as the Auto Recovery Czar for the Obama Administration. Montgomery had been at his post for just 15 months, during which time he managed to shell out an unprecedented amount of aid for two of America's ailing auto manufacturers. The move kept the lights on, the factories humming and workers paid as both GM and Chrysler worked their ways through bankruptcy.

Montgomery was just named dean of school public policy at Georgetown University, and will likely be spending his days there instead of fretting over whether or not the American auto industry can keep its head above water. Despite things looking up for both bailed-out companies, the Obama Administration says that Montgomery's vacant seat will be filled sooner rather than later, though no one knows who will be picked for the job. Until then, his duties will fall on the shoulders of Larry Summers, the current director of the National Economic Council.

[Source: The Detroit News | Image: Bill Pugliano/Getty]

Report: Auto Czar Montgomery stepping down originally appeared on Autoblog on Mon, 14 Jun 2010 15:57:00 EST. Please see our terms for use of feeds.

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REPORT: Obama dropping "car czar" in favor of task force

Chris Paukert — Mon, 16 Feb 2009 07:58:00 EST

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials, UAW/Unions

While there have been rumors and suggested candidates floated for the so-called federal "car czar" post, it now no longer looks like that position will be filled. That's because President Barack Obama has apparently gone cold on the idea. Instead, new reports suggest that he will look to a select group of senior economic advisers for guidance.

In lieu of appointing a single authority to help guide the restructuring of the Detroit Three, a senior adviser is suggesting that Obama instead plans to look to Treasury Secretary, Timothy F. Geithner; National Economic Council chairman Lawrence H. Summers, and Ron Bloom, a labor union and corporate restructuring expert. The three men will work with a presidential auto industry oversight panel, with Obama "reserving for himself any decision on the viability of GM and Chrysler."

The aforementioned panel will be known as the Presidential Task Force on Autos, and will incorporate officials from various government agencies, including commerce, energy, labor, transportation, and Treasury. A number of panel members are already embedded in the project, helping to develop viability plan proposals with the automakers themselves,

Both General Motors and Chrysler are scheduled to file restructuring plans with the Treasury in time to meet a Tuesday deadline, at which point Obama and his newly-assembled team are expected to review the plans for one-to-two weeks before issuing a public statement. More details at the link below. Thanks for the tip, Mike!

[Source: The New York Times | Image: AFP/Getty]

REPORT: Obama dropping "car czar" in favor of task force originally appeared on Autoblog on Mon, 16 Feb 2009 07:58:00 EST. Please see our terms for use of feeds.

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Obama faces immediate challenges with Detroit

Jonathon Ramsey — Fri, 23 Jan 2009 15:29:00 EST

Filed under: Government/Legal

To be fair, the new president faces a lot of immediate challenges. But when it comes to the auto industry, the biggest four challenges could be the bridge loans, fuel economy mandates, the EPA vs The California 14, and the board of czars that will oversee the fortunes of GM and Chrysler. The similarity between these challenges and others on the domestic and global agenda: he doesn't have a lot of time to get them right.

It was clear that the $17.4 billion granted to GM and Chrysler was just the beginning of a process needing a well thought out and long term endgame. Part of that endgame involved the two automakers coming up with viability plans, which are due on February 17. Then Congress and the president will need to decide, based on those plans, whether the car companies should receive more money.

Should the carmakers get more money, the necessary car czar position is looking like a body-of-car-oligarchs instead, which sounds like a more reasonable idea. One name that has popped up to head the group is Steven Rattner, a former NYT reporter turned private equity fund founder. What hasn't been explained yet is how this board of overseers is meant to work with the car companies.

On the issue of fuel economy, some of Obama's campaign pledges might cause additional consternation. He had said he wanted to double the CAFE standard in 18 years, which would mean a 50 mpg average by 2027. He has backed off of that to the more generic "I want to raise fuel economy standards." His other campaign trail pledge was to review the EPA not granting California and 13 other states a waiver to set their own emission standards. His EPA designee has said one of her first priorities will be to review that decision, and she sounds like she intends to overturn if she can. If that happens, as the Obama administration lifts up the industry with one hand, the industry will probably feel itself being choked by the other hand.

[Source: Detroit News]

Obama faces immediate challenges with Detroit originally appeared on Autoblog on Fri, 23 Jan 2009 15:29:00 EST. Please see our terms for use of feeds.

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Mulally: Car Czar should keep hands off product decisions

Jeremy Korzeniewski — Wed, 14 Jan 2009 08:56:00 EST

Filed under: Government/Legal, Ford

Now that General Motors and Chrysler have accepted Federal assistance in the form of low-interest bridge loans, the two companies may not have many choices available to them if a Fed-appointed individual were to make product recommendations to senior management. In fact, that's exactly what the so-called car czar would likely do, under the guise of keeping an eye on the interests of the taxpayers who funded the automakers' revival. Ford, though, has not accepted any assistance yet, and it hopes not to.

Recent comments made by CEO Alan Mulally may offer a glimpse as to why the Blue Oval's so hesitant to take a handout. After expressing that he's looking forward to working with the incoming Obama administration, Ford's CEO said, "My god, I hope that a car czar does not get into the product strategy of the companies," specifically referring to whether the car czar should decide who makes police cars and taxis. Hopefully, whoever is appointed to the position (if anybody is at all) would have abundant experience in the American automotive world, lest something really bad should happen.

[Source: Automotive News - sub. req'd]

Mulally: Car Czar should keep hands off product decisions originally appeared on Autoblog on Wed, 14 Jan 2009 08:56:00 EST. Please see our terms for use of feeds.

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MotorTrend nominates Roger Penske for car czar

Sam Abuelsamid — Thu, 11 Dec 2008 09:59:00 EST

Filed under: Government/Legal

If an emergency loan for the Detroit 3 makes it through Congress, part of the deal will be an overseer for the industry to make sure the money is spent wisely. Of course, the question is who will fill the car czar's slippers? MotorTrend editor Angus McKenzie has come out in favor of Roger Penske, an interesting choice particular considering his successful at the helm of various business endeavors, not to mention his racing teams. In the past, Penske has even been mentioned as a potential CEO of General Motors.

Naturally, since this makes so much sense, it'll never happen. Most likely, either some clueless bureaucrat or a crony of the current administration will get the job. But there's a distinct possibility that whoever fills the position will carry over to the Obama administration.

[Source: MotorTrend | Image: A. Messerschmidt/Getty]

MotorTrend nominates Roger Penske for car czar originally appeared on Autoblog on Thu, 11 Dec 2008 09:59:00 EST. Please see our terms for use of feeds.

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First draft of Automaker Bailout Bill is out

John Neff — Mon, 08 Dec 2008 19:27:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM

The House of Representatives and the Senate will discuss and likely vote on the Automaker Bailout Bill (we know, it's not technically a bailout, but rather loans that will be paid back) tomorrow, and the first discussion draft of the bill has hit the internet. The discussion bill is 31 pages long, and like you we're not about to spend our Monday evening reading through the whole thing. Thankfully, some real auto journalists over at The Detroit Free Press have done that for us.

They report that the bill contains provisions for a federal official, or "Car Czar" as the position will no doubt be referred to, who would oversee distribution of the funds and have authority to yank them back if an automaker is deemed to be using them ineffectively. The bill also requires automakers to submit another restructuring plan by March 31, 2009, after which the Car Czar could use his or her powers to reopen negotiations with the company, its creditors and the United Auto Workers union.

Part of the bill also stipulates that if the Detroit 3 accepts these loans, they must promise to stop pursuing litigation aimed at striking down California's right to set its own emissions standards and other states' right to adopt them. The California Air Resources Board has created emissions standards the are generally more strict than federal standards, and so far 17 states have chosen to adopt the Golden State's measures.

Detroit is backed into a corner, however, and will likely accept any conditions that Congress attaches to the bailout bill. With that in mind, Democratic leaders in Congress and the White House say that approval for the bill is likely, which would see around $15 billion in federal loans granted to the Detroit 3 as soon as December 15th.

[Source: CNN Money, The Detroit Free Press]

First draft of Automaker Bailout Bill is out originally appeared on Autoblog on Mon, 08 Dec 2008 19:27:00 EST. Please see our terms for use of feeds.

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Georgetown professor could land position as 'car czar' in Obama administration

Damon Lavrinc — Wed, 12 Nov 2008 15:05:00 EST

Filed under: Government/Legal

Soon after President-elect Obama and still-President Bush sat down on Monday, reports began to surface that the Obama camp was considering the appointment of a "Car Czar." The position would provide the new administration with analysis and advice on the auto industry and the financial (and product?) perils faced by Detroit Big 3(ish).

The original report by the Detroit News said that both Bush and Obama could be in favor of appointing an auto czar to oversee Federal efforts to provide emergency assistance to domestic automakers, and now Automotive News has thrown a name into the ring; Daniel Tarullo, a law professor at Georgetown University and expert on international economics.

Tarullo has held a number of positions outside of his teaching duties, including serving under the Clinton administration, acting as chief counsel to Sen. Edward Kennedy (D-Mass.) and working with the Brookings Institute on its Council for Foreign Relations. That's all well and good, but what's his background with the auto industry? In short, nada. Which makes us wonder: is it better to have someone who's had their hands in the industry for decades or a fresh mind that hasn't been sullied by time on the inside? And more to the point, do we even need a "Car Czar?"

[Sources: Detroit News, Automotive News - Sub. Req.]

Georgetown professor could land position as 'car czar' in Obama administration originally appeared on Autoblog on Wed, 12 Nov 2008 15:05:00 EST. Please see our terms for use of feeds.

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GM 'car czar' Lutz says it's the design, stupid

Frank Filipponio — Wed, 27 Dec 2006 15:28:00 EST

Filed under: GM

When Bob Lutz became GM's car czar last year, he kept telling workers that they couldn't keep doing things the same way if they wanted different results. Seems obvious, and that philosophy is considered one of the litmus tests for being sane. Although there's still a long way to go, and GM might slip to the #2 spot in global production before it gets sorted, it seems the message is getting through.

The 2005 bankruptcy fears are gradually fading, mainly because of CEO Rick Wagoner's budget-slashing, but also due to the Lutz cheerleading that has seen good product pushed to quicker release. The new Silverado/Sierra, for instance got into showrooms a full 3 months ahead of projections and, more importantly, hit before Toyota's much-hyped Tundra.

Most analysts will tell you it's Lutz who will ultimately get GM back to form. And the reason Lutz is so important is that he recognizes that good product is the only way out. He's telling everybody who will listen that better design, higher quality interiors, and quicker concept-to-sales floor development times are what GM needs.

Follow the jump for the rest of the story.

[Source: Automotive News, sub req]

Continue reading GM 'car czar' Lutz says it's the design, stupid

GM 'car czar' Lutz says it's the design, stupid originally appeared on Autoblog on Wed, 27 Dec 2006 15:28:00 EST. Please see our terms for use of feeds.

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Derrick Kuzak to become global Car Czar for Ford

John Neff — Thu, 14 Dec 2006 14:29:00 EST

Filed under: Hirings/Firings/Layoffs, Ford

By now we're all aware what a good Car Czar can do for an automaker. Bob Lutz is often referred to as the Car Czar at General Motors who banned body cladding on Pontiacs, brought over the Aussie-sourced GTO (that really opened the door for the upcoming Chevy Camaro revival) and pushed Cadillac further upmarket where it belongs. Last year Lutz officially became GM's global product Czar, no doubt on account of Saturn's transformation into an imported brand with the addition of rebadged versions of the Opel Antara, Astra and eventually the next generation Vectra sedan.

The Detroit News is reporting that Ford is also keen on integrating its global units and that CEO Alan Mulally will appoint current Group VP of Product Development Derrick Kuzak as the company's new Global Product Development Czar. Ford knows the path to efficiencies lies in coordinating and sharing product on a global level, but up to this point could not reorganize its structure fast enough to make that happen. Kuzak's job will be to oversee the company's product programs on a worldwide level, hopefully ensuring that we don't end up with another "My Focus is better than yours" situation in the future. Mullaly will also likely appoint a global Manufacturing Czar to also integrate the production side of things on a global scale.

We heard Kuzak speak this week at Ford's Showroom of the Future event, and, while we don't know the guy personally, hear that he's not only an accomplished executive but also a respected engineer. Engineering Ford's vast product development programs around the world into a well oiled and single focused machine is a job we don't envy, but we hope Kuzak's up to the task.

[Source: The Detroit News]

Derrick Kuzak to become global Car Czar for Ford originally appeared on Autoblog on Thu, 14 Dec 2006 14:29:00 EST. Please see our terms for use of feeds.

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