Should An Appointed Auto Czar Have The Power To Force An Automaker Into Bankruptcy?

The government overseer who would be in charge of emergency aid for the Detroit 3 should have the power to force an automaker into bankruptcy if the company fails to restructure for long-term viability, the White House said today.

White House Press Secretary Dana Perino outlined Bush administration criteria in negotiating emergency-aid legislation with Democratic leaders of Congress. At a briefing, she called a deal "very likely" sometime today, even though the White House hasn't received draft legislative language from Congress.

The White House called on congressional Democrats to work in a bipartisan way to get an aid bill enacted this week.

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njsidekick3 - 12/8/2008 3:01:02 PM

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Do'It-Do'It. (Q: Starsky)

cantaffordone - 12/8/2008 8:08:02 PM

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Everything in Washington is a deception at some level. The purpose of the "Czar" is not to save the auto industry or to protect the peoples money. It's singularly to provide a buffer to polititions. If something is a sure bet, the House or Senate scum will slap their name right on top and dictate what is to be done. When outcome is in doubt, they get a fall guy to stand in (Czar) - and if it all works out ok, then they will say made the right move (again) and.. if it fails - it's George Bushes fault. Nancy and Harry have never made a mistake.

woood - 12/9/2008 1:10:31 AM

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For economy cars and basic commercial vehicles, if the deal is good, why not? I'm sure parts will still be made available the next 10 years or more from both OEM and replacement manufacturers. I just wouldn't buy the expensive models where there are way too many extra gadgets and things that might break or cease working.

beetee - 12/9/2008 9:33:25 AM

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"Should An Appointed Auto Czar Have The Power To Force An Automaker Into Bankruptcy?"

I really don't think an appointed Auto Czar has anything to do with that. If we *don't* appoint an Auto Czar, they will go bankrupt regardless. That said, if *I* go begging for taxpayer monies, there has to be conditions and oversight.

What if Chapter 11 made the most business sense? Then what?

1UAW, I've flown bankrupt airlines. Delta went 11 and look at them now? It isn't like Monopoly where you're simply kaput. With DIP and restructuring, the impact to the consumers these days are not as drastic as you would have us believe. Not only could they continue to operate, but they could shed massive cash drain and inefficiencies.

However, one would guess that 1UAW has vested interest in preventing a bankruptcy, as he champions the source of one such inefficiency.