Daily Auto News Auto Industry Task Force Working to Avoid Bankruptcy
Daily Auto News
The Associated Press reports, “A top adviser to President Barack Obama’s auto industry task force said Monday that bankruptcy is not the goal of the administration’s efforts to restructure General Motors and Chrysler but stressed that the government cannot solve all of the industry’s woes..
The assertion came in interviews by the AP and the Detroit News with Steve Rattner, the former financier who is leading the administration’s autos task force.
The Street says, “Rattner also said the panel was committed to meeting the March 31 deadlines specified in loan deals with General Motors and Chrysler, but decisions on further aid could come later.”
Rattner told AP, “Bankruptcy is not our goal,” adding, “Bankruptcy is not an ideal place for any company to be. It is sometimes necessary but something that ideally one wants to avoid and so we’re very focused on solving the problem, not on filing for bankruptcy.
The Detroit News asked Rattner why he left his Wall Street Investment firm to take on one of the most complex issues in the recession, and reports Rattner “admits being “pretty daunted” when approached by Treasury Secretary Tim Geithner and White House economic adviser Larry Summers to tackle the auto crisis.” Rattner told the news, “I don’t think there are many people on earth who have tried to attack a problem this complex,” Rattner added that while the banking crisis was worse than the auto industry crisis, “I can’t think of anything else in recent modern business history that rivals this.”
The Street reports that Rattner isn’t only focused on helping automakers. The plight of parts suppliers is also on the task force’s radar.
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