Presidential Task Force on the Auto Industry

The Presidential Task Force on the Auto Industry is an ad hoc group of United States cabinet-level and other officials that was formed to deal with the financial bailout of automakers Chrysler and General Motors.

Based on an assessment that automobile manufacturing was a critical sector of the economy providing 3 to 4 million jobs for Americans, that liquidation was imminent for two of the three major U.S. automakers, and that the break ups would devastate the U.S. economy, the U.S. government became involved in the day-to-day management decisions of Chrysler and General Motors through the Task Force.[1][2][3]

The Presidential Task Force formed and started holding meetings in February 2009.[4][5] It reviewed financial and operational restructuring plans submitted by Chrysler and General Motors (GM) and made its own specific recommendations at cabinet level meetings to the President regarding the restructurings and the requests for funds from the companies.[5] Recommendations also included directives on improving wage and benefit structures, and developing fuel efficient competitive cars for the future. In March 2009, the Task Force recommended up to $5 billion in support for automotive industry suppliers,[5] and by late May 2009, following the recommendations of the Task Force, the U.S. government had lent approximately $25 billion in total to the companies. At that time, it was estimated that GM might require $30 billion more to emerge from bankruptcy.[6] By mid-July 2009, both companies had restructured and emerged from bankruptcy. The Task Force was scaled back from "day to day" involvement to periodic "monitoring".[3]

According to an October 2013 report of the Special Inspector General of the Troubled Asset Relief Program, the U.S. government has lost about $9.7 billion (through September 13, 2013) in connection with its rescue of General Motors.

Members and Official Designees

Task Force is composed of the following cabinet members and public officials:[7]

Members

Senior Advisor on Auto Issues at the Treasury Department, Harry Wilson

Official Designees

Of the Members of the Presidential Task Force:

Staff

See also

References

  1. Press room "Treasury Announces Auto Supplier Support Program: Program Will Aid Critical Sector of American Economy", U.S. Dept. of the Treasury, March 19, 2009.
  2. Myerson, Harold. "The Case for Keeping Big Three Out of Bankruptcy", "The American Prospect", November 24, 008, retrieved December 7, 2008.
  3. 1 2 Press Room "Statement from Treasury Secretary Geithner on the Presidential Task Force on the Auto Industry", U.S. Dept. of the Treasury, July 13, 2009.
  4. David Shepardson and Gordon Trowbridge. "Auto task force taking shape" February 21, 2009.
  5. 1 2 3 Press Room "http://www.ustreas.gov/press/releases/tg36.htm", U.S. Dept. of the Treasury, February 20, 2009
  6. Stephen Manning. "Meltdown 101: What took GM and Chrysler so long?" Associated Press, May 29, 2009.
  7. Press room."Geithner, Summers Convene Official Designees to Presidential Task Force on the Auto Industry", U.S. Dept of the Treasury, February 20. 2009.
  8. "The 31-Year-Old in Charge of Dismantling G.M." by David E. Sanger, The New York Times, May 31, 2009 (p. B1 6/1/09 NY ed.). Retrieved 6/1/09.
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