The new Car Czar

(Dec 10) The Car Czar for the U.S. auto-industry will have the power to force U.S. automakers into bankruptcy. He (or she) will also have the power to reorganise the Industry and will be responsible for the emergency loans Congress gives to bailout or save the industry.
The public mood in the U.S. is not very friendly for the Detroit Big 3, and the White House said in a press conference they do not want "to throw good money after bad money".
There is a definite risk calls for protectionist measures will increase.

(Dec 8) Sources on the Internet mention Lee Iacocca as the new car czar.
We consider this highly unlikely.
Mister Lee Iacocca is 85 years old (born October 15, 1924) and although famous for his book(s) and most commonly known for his revival of the Chrysler Corporation in the 1980's, he can hardly be envisaged as the Genius innovative technician and businessman who is going to steer the U.S. auto industry into a new era.
Some things are for sure, it won't be a high paying 'glamour job', Ford, Chrysler and GM CEO's are expected to work for $ 1.- (One dollar) a year and few perks avaiable. GM's chairman Rick Wagoneer is expected to leave anyway.
More to follow in next updates, it is beginning to look like a soap in the making..., great cartoon stuff as well...

(Dec 10) Today (Wednesday Dec 10) the final Detroit 3 bailout (or help) proposal is expected to reach the U.S. Congress. The White House agreed to the proposal.
There are a few things to remember,
1. It is very likely the total costs of the bailout of the U.S. auto-industry can rise to as much as $ 100.- or $ 150.- billion.
2, Of the Detroit 3, Ford is in a much better cash position and in a better and leaner state than General Motors and Chrysler. Ford has already sold Jaguar, Land Rover and Aston Martin and is currently studying the sale of Volvo.

(Dec 9)Iacocca, Chrysler's retired chairman and chief executive, said in a statement Tuesday that now is not the time to make executive changes, as suggested by Senate Banking Committee Chairman Chris Dodd, D-Conn.
"Having been there, I do not agree with the sentiment now coming out of Congress that the management should be changed as a condition of granting loans to the Detroit automakers," Iacocca said. "You don't change coaches in the middle of a game, especially when things are so volatile."
He added that the auto industry has been hit by an unpredictable series of events beyond its control.


Auto-industry loan plan (partial bailout) is called 'the barbershop' by House speker Nancy Pelosi: "Everybody gets a haircut". House Speaker Nancy Pelosi, D-Calif., said the restructuring would require tough concessions from management, labor, creditors and others.

Officials: 9/11 fund overseer could be auto 'czar'
WASHINGTON (AP) -- Congressional officials say the lawyer who oversaw the 9/11 victims' compensation fund has emerged as a candidate to be the "car czar" in charge of a bailout for Detroit's Big Three automakers.
Kenneth Feinberg, the special master of the federal Sept. 11 fund, is a contender to run a roughly $15 billion auto rescue and work with the Big Three to restructure their beleaguered companies.
The White House and congressional Democrats are near agreement on an auto bailout that would provide loans on Dec. 15. It would create a federal overseer who could revoke the funds early next year if the companies weren't doing enough to become viable.
The officials spoke on condition of anonymity because no selection has been made.


(New York Times Permalink) Washington
Detroit Bailout Is Set to Bring on More U.S. Oversight
By DAVID M. HERSZENHORN and JACKIE CALMES - Published: December 8, 2008
Congressional Democrats were drafting legislation for government control of the auto industry, including the possible creation of an oversight board.