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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Judge tosses out suit by Delphi pensioners against Treasury

Zach Bowman — Tue, 06 Sep 2011 14:01:00 EST

Filed under: Government/Legal

The Detroit News is reporting that a federal judge has thrown out a portion of the lawsuit brought against the federal government by Delphi retirees. The former employees of the automotive supplier brought suit against the federal government after their pensions were terminated in bankruptcy proceedings. U.S. District Judge Arthur Tarnow dismissed claims against the U.S. Treasury Department, Timothy Geithner, the auto task force, Steven Rattner and Ron Bloom, though the judge did allow the lawsuit to continue against the Pension Benefit Guaranty Corporation. The Pension Benefit Guaranty Corporation serves as the federal government's pension insurer.

Delphi Corporation walked away from pensions covering around 70,000 people during the company's bankruptcy proceedings in 2009. The Detroit News reports that those pensions were underfunded by around $7 million and that the Pension Benefit Guaranty Corporation took responsibility for $6.1 million of the deficit. That marks the largest loss in the institution's history. Even so, some pensioners may lose as much as 65 percent of their benefits, including life and health insurance.

Judge tosses out suit by Delphi pensioners against Treasury originally appeared on Autoblog on Tue, 06 Sep 2011 14:01:00 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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Government reportedly encouraged by Fiat's plan for Chrysler, sees "huge sense of urgency"

Chris Shunk — Thu, 19 Nov 2009 08:58:00 EST

Filed under: Government/Legal, Chrysler, Fiat

Two weeks ago Fiat and Chrysler unleashed an ambitious five-year plan to return Detroit's number three automaker to financial and product health. The plan called for 14 all-new models based mostly on Fiat platforms and ten more vehicles which will receive much-needed attention. While Senator John McCain isn't so sure Chrysler will survive the next few years, Obama Auto Task Force Chief Ron Bloom likes what he sees.

Automotive News is reporting that Bloom says the Pentastar plan shows "a huge sense of urgency. We see a huge dedication and commitment, working extremely hard." Bloom also added that he agrees with CEO Sergio Marchionne when he said that team Pentastar has their work cut out for them.

Considering that the US government spent billions bailing out Chrysler, Bloom's confidence means a lot. But while the government saved Chrysler, the United Auto Workers is the company's biggest shareholder. The union currently owns 55% of the new Chrysler, and that won't change until the Auburn Hills, MI-based automaker goes public and pays off its pension obligations. Marchionne has said that the public move could come as early as 2011, but Bloom says that time line could be premature. Either way, we're sure Chrysler will go public at the earliest possible time, but that time won't come until the stock-buying public sees some new products coming from Auburn Hills via Italy.

[Source: Automotive News - Sub. Req. | Image Source: Bill Pugliano/Getty]

Government reportedly encouraged by Fiat's plan for Chrysler, sees "huge sense of urgency" originally appeared on Autoblog on Thu, 19 Nov 2009 08:58:00 EST. Please see our terms for use of feeds.

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REPORT: GM's CFO Ray Young likely to resign

Chris Shunk — Wed, 09 Sep 2009 18:01:00 EST

Filed under: Government/Legal, GM

The last two chief financial officers at General Motors, Rick Wagoner and Fritz Henderson, eventually became CEO. Ray Young, who has been CFO at the General for less than a year and a half, likely won't make it to the top. The Detroit News reports that Young is going to resign his post as CFO in the weeks ahead, and he may be only one of a few departures among senior GM brass.

The new GM board is meeting today to discuss and evaluate top management at the General, and Detroit News' sources say that Young, the GM finance department and President Obama's auto Task Force clashed on a few occasions during bankruptcy proceedings. The DN points out one instance when, in a June 2 press conference, Young said that the company would not disclose financial info post bankruptcy, as it would in effect be a private company. Predictably, that didn't play well with the public tax payers who in effect bailed out the embattled automaker. The next day, GM announced that it would give regular updates on its financial status.

Some are speculating that CEO Fritz Henderson will also be under the microscope during the Wednesday board review. In August, Bloomberg reported that Obama Task Force lead Ron Bloom reportedly gave Henderson a 60% chance of leading a GM turnaround, which isn't exactly a vote of confidence. We're guessing that it wouldn't look good for the Task Force or the new GM board to ditch another CEO just five months after getting rid of Wagoner, though, so removing the fledgling CEO is probably unlikely at this point.

[Source: Detroit News | Image Source: Stan Honda/AFP/Getty]

REPORT: GM's CFO Ray Young likely to resign originally appeared on Autoblog on Wed, 09 Sep 2009 18:01:00 EST. Please see our terms for use of feeds.

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Ron Bloom, Obama's chief auto advisor to become manufacturing czar?

Dan Roth — Mon, 07 Sep 2009 10:29:00 EST

Filed under: Etc., Government/Legal, Plants/Manufacturing, UAW/Unions

Ron Bloom's role in the bankruptcy and re-emergence of Chrysler and General Motors has proven that his experience driving negotiations with the United Steelworkers union is portable. Pushing the two automotive giants through restructuring in an impressively quick manner has given the Obama administration the impression that Mr. Bloom (far left) is a good choice to head up a manufacturing overlord position which will focus on building that sector of America's economy back up. An appointment announcement is scheduled today at an AFL-CIO picnic in Cincinatti, Ohio, where both President Obama and Bloom will appear.

Bloom's credentials in manufacturing go back further than just his recent automaker involvement. As special assistant to the president of the United Steelworkers union for ten years, Bloom looked out for union jobs during a deal between Wheeling-Pittsburgh Corporation and Esmark, compromising where necessary, and stringing profanity together when needed to meet his objective.

Bloom is going to need as many fancy swear words as he can muster to stanch the bleeding in manufacturing. Many believe the United States will never have as robust a manufacturing sector as it once did. Even with our shrinkage in manufacturing, Bloom indicates that the United States shouldn't forget how to make things just yet, and that the Obama Administration wants an "innovative, vibrant manufacturing sector." In that vein, monies from the stimulus package are going into environmentally-focused programs such as electric vehicles, as well as helping automakers to retool by giving low coast loans.

[Source: Detroit News | Image: Chip Somodevilla/Getty]

Ron Bloom, Obama's chief auto advisor to become manufacturing czar? originally appeared on Autoblog on Mon, 07 Sep 2009 10:29:00 EST. Please see our terms for use of feeds.

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REPORT: Government ends warranty programs for GM, Chrysler

Chris Shunk — Wed, 22 Jul 2009 17:58:00 EST

Filed under: Government/Legal, Chrysler

On March 30, President Obama announced that the federal government would back the warranties of General Motors and Chrysler in the event of bankruptcy. When the president says the word "backing," he means cold, hard cash, and in this case the total was $641 million. But with both companies out of bankruptcy court and flush with the government cash needed to run their businesses, it is apparently time to pay the money back.

Automotive News is reporting that new Auto Task Force head Ron Bloom informed a House Judiciary subcommittee that the government would no longer be backing the warranties of GM and Chrysler, adding "consumers can now feel assured that the companies have the financial wherewithal to meet their warranty commitments on a continuing basis."

GM and Chrysler have reportedly returned the $641 million, with interest. GM told Automotive News that it didn't use any of the funds, while Chrysler declined to comment on warranty matters as a matter of company policy.

[Source: Automotive News - Sub. Req. | Image: Justin Sullivan/Getty]

REPORT: Government ends warranty programs for GM, Chrysler originally appeared on Autoblog on Wed, 22 Jul 2009 17:58:00 EST. Please see our terms for use of feeds.

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BREAKING: Rattner reportedly quitting post as head of Auto Task Force

Jeremy Korzeniewski — Mon, 13 Jul 2009 17:28:00 EST

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

Steve Rattner, the former Wall Street executive who was tapped by the Obama Administration run point for the Auto Task Force, is reportedly stepping down after five months on the job. According to a statement from Treasury Secretary Timothy Geithner, Rattner (above, far right) will now "transition back to private life and his family in New York City." He added, "I hope that he takes another opportunity to bring his unique skills to government service in the future."

With Chrysler and General Motors recent emergence from bankruptcy, now is probably as good a time as any to transition to new Task Force leadership. Taking over for Rattner will be Ron Bloom, a former advisor to the United Steel Workers union. Bloom's main focus will reportedly be to "[protect] the substantial investment the American taxpayers have made in GM, Chrysler and GMAC."

[Source: The Detroit News | Image: Chip Somodevilla/Getty]

BREAKING: Rattner reportedly quitting post as head of Auto Task Force originally appeared on Autoblog on Mon, 13 Jul 2009 17:28:00 EST. Please see our terms for use of feeds.

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Auto Task Force says no more money for auto bailouts... probably

Chris Shunk — Thu, 11 Jun 2009 19:03:00 EST

Filed under: Government/Legal, Chrysler, GM

To date, the U.S. government has reportedly given General Motors, Chrysler, their financial institutions and various industry suppliers about $80 billion in taxpayer money, and Congress wants to know when we're going to get that money back. The Senate Banking, Housing and Urban Affairs Committee held a hearing with the Auto Task Force for the first time to discuss the state of the government loans, as well as whether or not taxpayers will ever be paid back.

According to task force senior adviser Ron Bloom, there is "a reasonable probability" that some or all of the money will be paid back, but he was by no means "highly confident" that the money would be returned to taxpayers. He does, though, see "reasonable scenarios where taxpayers get their money back."

Bloom was a bit more certain, however, about the prospects of the auto industry receiving still more money from the government. Bloom said that it was the Obama administration's "absolute intent" not to provide future funding to the bailed out automakers, but he followed that with "never say never." That's far from a guarantee, but it would appear that more money doesn't seem to be in the plans.

During his testimony, Bloom also reiterated that the administration was a "reluctant shareholder" in the automakers, and that the government intends to get out the car business as soon as possible. When Alabama senator Richard Shelby (R) pressed for a timeline for the government to exit GM ownership, Bloom admitted that there was "no specific target" set.

[Source: The Associated Press via MSNBC | Image: Chip Somodevilla/Getty]

Auto Task Force says no more money for auto bailouts... probably originally appeared on Autoblog on Thu, 11 Jun 2009 19:03:00 EST. Please see our terms for use of feeds.

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