We wonder why a "car czar" is necessary to oversee the $15 billion congressional bailout of General Motors and Chrysler Corp.
The presidential appointment would oversee the restructuring of the two companies and expenditure of the bailout money.
Why add another layer of bureaucracy when the federal government has the General Accounting Office?
Congress is determined to have a high and mighty overseer of the federal transfusion, however. We think President Bush should pick someone in the GAO and divert some of the GAO's personnel resources to shadowing the car companies.
Ford, by the way, says it doesn't need rescuing immediately. But the automaker hasn't shut the door on asking for a bailout.
The issue of a car czar may be moot if the deal for GM and Chrysler stalls in Congress. There are some members who are against any bailout scheme.
There seems to be enough votes if the right plan comes along, and $15 billion is more palatable that some of the figures kicked around that would obligate the government for far more money.
Congress should take a long look at the 1979 request from Chrysler Chairman Lee Iacocca. Even though Iacocca and Chrysler engineers had plans for what were then revolutionary vehicles, the company was in imminent danger of folding.
Iacocca wanted federal loan guarantees on the millions needed to revamp the company. The deal was controversial, but as Iacocca pointed out, Congress rode to the rescue of airlines and railroads and Chrysler represented more employees than those in the planes and trains industries.
The deal went through, Chrysler retooled and came out with K-cars and minivans that put the company way into the black. The loans were paid off early, and the federal guarantees never came into play.
But Iacocca had a plan. Chrysler had vehicle lines ready for final development and manufacturing. We hope GM and Chrysler have compelling plans this time around.
Iacocca was the mastermind of one of the 20th century's greatest industrial turnarounds. It wouldn't have happened if Chrysler had not provided what the public wanted and was not getting in the numbers and the affordability elsewhere.
Congress should consider the success factors from 1979 before making outright loans. Such an approach is more important than appointing a car czar.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement