Former car czar said he could have pushed for more cuts to make U.S. auto indystry more competitive

Article by Christian A., on December 18, 2011

Steve Rattner went before the Detroit Economic Club and told them although the bailouts in 2009 surpassed his expectations, he would have done more to streamline GM's cost structure if he had been given more time. Rattner had previously headed the auto task force and in doing so, had led the efforts of the Obama administration to rescue GM and Chrysler. He believes that the U.S. auto industry could have been made more globally competitive if he had pressured auto workers, management and creditors to agree to deeper concessions.

He said that he is now having doubts on several details of the bankruptcy restructurings. For instance, he mentioned that active workers who were represented by the UAW didn’t get a pay cut and they also weren’t asked to forfeit a portion of their pensions. In addition, creditors received a lot more than they would have gotten in the event of a liquidation.

Rattner informed reporters that if he got more time, he would have urged the stakeholders to sacrifice slightly more. Rattner also clarified that at the time, GM wasn’t in a “near-death experience” but rather, it was already dead. Under the terms of the bailouts, the U.S. government got a majority stake in GM and Fiat SpA took over to manage Chrysler. After GM’s initial public offering, the U.S. government's stake in GM had dropped to around a third of what it was. [source: Reuters]

Topics: united states

If you liked the article, share on:

Comments

Recommended

t seems as if something had flown out of the drawing board. Kind of. Before the Korean carmaker holds its official debut this year, sketches of the updated 2018 Hyundai...
by - February 28, 2017
At the 2017 Mobile World Congress held in Barcelona, SEAT gave the public a taste of what it believes is the future of driving. For the company, this is about...
by - February 28, 2017
It was in April of last year when Honda first revealed plans that it was planning to build a plug-in hybrid version of the Clarity. There will also be an...
by - February 28, 2017
More efficient, more power and longer range. This is how we could best describe the electric version of the Volkswagen Golf for the 2017 model year. In terms of efficiency,...
by - February 28, 2017
If you think you’re all ready for the new 2018 Audi S4 sedan when it arrives in the United States this spring, then better make sure that your pockets are...
by - February 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries