Presidential Task Force on the Auto Industry

rdf:langString Presidential Task Force on the Auto Industry

rdf:langString The Presidential Task Force on the Auto Industry was an ad hoc group of United States cabinet-level and other officials that was formed by President Obama to deal with the financial bailout of automakers Chrysler and General Motors. Based on an assessment that automobile manufacturing was a critical sector of the economy providing 3 to 4 million jobs for Americans, that liquidation was imminent for two of the three major U.S. automakers, and that the break ups would devastate the U.S. economy, the U.S. government became involved in the day-to-day management decisions of Chrysler and General Motors through the Task Force. The Presidential Task Force formed and started holding meetings in February 2009. It reviewed financial and operational restructuring plans submitted by Chrysler and General Motors (GM) and made its own specific recommendations at cabinet level meetings to the President regarding the restructurings and the requests for funds from the companies. Recommendations also included directives on improving wage and benefit structures, and developing competitive fuel efficient cars for the future. In March 2009, the Task Force recommended up to $5 billion in support for automotive industry suppliers, and by late May 2009, following the recommendations of the Task Force, the U.S. government had lent approximately $25 billion in total to the companies. At that time, it was estimated that GM might require $30 billion more to emerge from bankruptcy. By mid-July 2009, both companies had restructured and emerged from bankruptcy. The Task Force was scaled back from "day to day" involvement to periodic "monitoring". According to an April 2014 report of the Special Inspector General of the Troubled Asset Relief Program, the U.S. government had lost $11.2 billion in its rescue of General Motors. The U.S. government spent $50 billion to bail out GM, meaning it recovered 77.6 percent of its investment amount.