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Detroit Welcomes Obama Task Force -- Sort Of

By Jim Henry | Mar 9, 2009

In meeting with representatives of President Obama’s automotive task force this week, Detroit is rewriting the definition of “mixed feelings.”

On the one hand, it’s important to make a good impression on Obama advisers Steven Rattner, Ron Bloom, Diana Farrell and Brian Deese. Their input will affect Obama’s ultimate decision on vital loan requests pending before the U.S. Treasury Department from Chrysler and GM.

GM, for instance, is expected to show off the Chevrolet Volt, which runs off a battery that can be recharged from an ordinary socket. It also has a conventional, gasoline-powered engine that recharges the battery when the power runs low.

On the other hand, some Detroiters are gritting their teeth, for many reasons. Some are resentful that no one on Obama’s automotive task force has any experience inside the auto industry. There’s also a certain amount of online buzz about the fact that as far as anybody can determine, the Obama task force members mostly drive import-brand cars – like much of the population outside Detroit.

Many Detroiters react strongly to what people drive. If the car company CEOs can be raked over the coals for showing up in Washington in private jets to plead poverty, the Detroit equivalent is showing up to “fix” the domestic auto industry driving an import-brand car, or even owning one. That’s true even if it’s assembled in America. Many cars and trucks from Honda, Toyota, Nissan, Mercedes-Benz, BMW and others are.

Overall in Detroit, there’s also a very high background hum of shock, hurt and anger that things are so bad; that the rest of the country doesn’t seem to care; and that the auto industry even needs a government bailout in the first place. The auto industry has always seen government intervention in the auto industry as a mixed blessing at best.

The Detroit Free Press has been soliciting online comments from readers since Friday afternoon, March 6, asking readers what they would tell the Obama task force if they had the chance. When I looked earlier today, on March 9, they already had 283 comments.

It’s amazing to me that there were quite a few comments saying that the government should allow the car companies to go bankrupt. Quite a few readers said the task force should save the taxpayers’ money. Of course, there were also responses about saving jobs, and asking the task force to make it easier and more affordable for ordinary people to buy cars.

Based on a quick look at the most recent responses, I only saw hostile one. That reader advised the task force members to “get back into their imports and leave town.”

Jim Henry has been writing about the auto industry from a business perspective for more than 20 years. He is also a member and past president of the New York-based International Motor Press Association.

BNET User Analysis

Web Buzz:
  • Enough with Geneva! Check out Autorama in Detroit

    Car Gurus - 337 days 9 hours 37 minutes ago

    We're all fed up with hearing about GM's troubles and stupidities. Tired of hearing about the Obama Auto Task Force visiting Detroit to drive the Volt. And especially sick of hearing bloggers dump on GM and the UAW as if they were Rush Limbaugh. These people need to get a life and go to Autorama, the great perennial hotrod show that exhibits...

  • MARK PHELAN: Myth and reality in federal auto loans

    Detroit Free Press - 310 days 20 hours 46 minutes ago

    Many people are complaining about President Obama?s ultimatum to GM and Chrysler, and his automotive task force. Most of the complaints are simply wrong. Here?s a quick reality check on four statements frequently heard in Detroit last week. Myth: President Obama had no right to fire GM Chairman and CEO Rick Wagoner. Reality: Grow up. GM has...

  • Maybe these people can save Detroit's Big 3…

    Car Gurus - 336 days 22 hours 11 minutes ago

    Yes, we're all sick of hearing about GM's woes. But sometimes something so ridiculous comes up that you just have to comment on it. Take this Detroit Free Press article, directed at President Obama's automotive task force, as an example. The article attempts to sway the task force by telling the stories of some people affected by the...

  • Rattner Says GM, Chrysler May Need More Aid

    Reuters - 326 days 8 hours 18 minutes ago

    DETROIT (Reuters) - Government aid requests from General Motors Corp (GM) and Chrysler may rise considerably, a top adviser to President Barack Obama's auto task force said in a Bloomberg Television interview. The current aid request from the two automakers "depends on them achieving plans that are somewhat ambitious," Steven Rattner said in the...

  • U.S. Autos Task Force Meets UAW, GM, Chrysler in Detroit

    Reuters - 337 days 3 hours 33 minutes ago

    By David Bailey DETROIT (Reuters) - Members of the Obama administration's autos task force met for the first time with the national leadership of the United Auto Workers on Monday as part of a visit to the Detroit area where they again met with executives of General Motors Corp (GM) and Chrysler. Administration and other sources said that lead...

 

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