More Videos
- Growing Sub-Prime Auto Loans - New Troubles for Automakers?
- Savings at the Pump Still Supreme for Car Buyers
- GM Says It's Dropping Out of Super Bowl Ad Race
- Two New Models, Two Different Drivers in Mind
- GM Still Likes Its No-Facebook Ad Strategy
- World's Biggest Brands Flex Their Muscles
- A New World Record: 80 Million Vehicles... and Counting
- Is Toyota Back?
- Ford Cuts Summer Idle Time at US Plants, Will GM Follow?
- Auto Stocks Stuck in Neutral
MOST SHARED
- Euro Rallies After Pro-Bailout Parties Gain in Opinion Polls
- Spain May Recapitalize Bankia With Government Debt
- China Industrial Profits Down on Slowing Growth
- IMF Chief Lagarde: Little Sympathy for Greece
- Renesas Sinks 11% as It Braces for Costly Restructuring
- Graff Diamonds Founder Lists Again
- Oil May Slip Towards Mid-$80s as Europe Weighs: Survey
- China to Encourage Private Capital in Banking Industry
- Europe May Be Unprepared for Greece Exit: Official
- Japan's Nomura Linked to Another Insider Trading Case
- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Euro Rallies as Greece's Pro-Bailout Parties Gain Favor
- Oil May Slip to Mid-$80s as Europe Weighs: Survey
- Europe Unprepared For Greek Exit: Belgian Official
- Week Ahead: Europe Has Wall Street Bull on Short Leash
- Spain May Recapitalize Bankia With Government Debt
- How Weinstein, Hedge Funds Outsmarted JPMorgan
- How Nasdaq Lost Control of Facebook IPO, by the Minute
- Economists Can't Solve Europe's Crisis
- IMF Chief Lagarde: Little Sympathy for Greece
RSS FEED
Behind The Wheel
Text Size 
Will Obama Auto Team Do What's Right? Or Politically Right?
 |
AP GM Dealership |
It was a smack in the face coming from a candidate who wasn't afraid to say something politically risky- even if it was the right message to send.
Now that he's President, Barack Obama faces a similar situation. The question is whether he will do what needs to be done or cave to political pressure?
This week, his auto task force starts meeting with executives from GM and Chrysler, the UAW, dealers, suppliers, bond holders. These face to face meetings in Washington are supposed to give the task force members a chance to question all the key parties about how to restructure an industry bleeding billions of dollars. Nobody knows how these meetings will end, but one thing is certain: somebody, actually many people, will lose.
The question is whether President Obama will show the same guts as candidate Obama? Will he have the gumption to tell one or both of the auto makers, "Sorry, but your company needs to go into bankruptcy court? Will he have political fortitude to handle complaints from cities where plants and dealerships are shuttering?
As one industry veteran told me yesterday, "It's one thing to rattle the sabre and threaten folks. It's another to have the guts to draw the knife and actually start cutting." That's especially true in an economy with unemployment rising, the market tanking, and an auto industry that has stalled.
The country will be watching when it all starts later this week.
_____________________________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- General Motors [GM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
_____________________________________
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes
