WASHINGTON – Detroit is really in the driver’s seat these days.
General Motors is set to pocket billions in bailout bucks today – despite blowing a government-imposed restructuring deadline.
EDITORIAL: DETROIT’S LAST CHANCE
Sources said the struggling car maker wasn’t able to squeeze concessions out of the United Auto Workers – part of the cost-saving terms of its $13.4 billion rescue – despite progress made yesterday.
But why bother? UAW Legislative Director Alan Reuther said the Obama administration’s upcoming appointment of a task force to oversee the automakers’ restructuring – instead of a “car czar” – should get things moving.
“I think this is an ongoing process, and having the Obama administration finally putting this task force in operation, hopefully it will be able to facilitate discussions going forward,” Reuther said.
GM has received $9.4 billion in government loans and will receive another $4 billion today.
And the company is likely to seek even more money, at least up to the $18 billion that it requested from Congress in December under its worst-case-scenario projections.
Chrysler, which was locked in talks with the UAW as well, has received $4 billion and could get $3 billion more if its plan is approved.
Its request will be considered separately.
GM execs have insisted the company only has to show substantial progress by today, with the whole plan finalized by March 31.
Its plans will likely include plant closings and hacking off brands with slugging sales, such as Hummer, Saab and Saturn.
The auto companies’ CEOs were blasted by lawmakers the last time they made the trip to Washington for failing to present plans for how they would make use of billions of taxpayer dollars.
President Obama’s spokesman, Robert Gibbs, dodged questions from reporters aboard Air Force One yesterday about why Obama had abandoned the car-czar idea.
Gibbs touted the benefits of creating a panel of experts spanning several government agencies.
“I think this just gives us a broader array of people that can . . . bring their expertise and understanding of a lot of complex issues together,” Gibbs said.
Also today, Obama will sign the $787 billion stimulus bill into law.