The auto industry bailout legislation proposes a "car czar" who would oversee the implementation of the Detroit automakers' sweeping restructuring plan.
I wonder who will be the car czar? He or she will need more knowledge about the auto industry that thousands at GM, Ford and Chrysler who have spent their careers and considerable talent trying to make cars Americans want to buy at affordable prices.
In addition to extensive information about auto production, and consumer tastes, David M. Herszenhorn, of the New York Times, that the Democrats’ legislation calls for the czar and his or her team to have "appropriate expertise in such areas as economic stabilization, financial aid to commerce and industry, financial restructuring, energy efficiency and environmental protection."
Congress seems to believe that the automakers don't desire to capture the profit that a truly innovative product would bring, that other automakers have also purposely avoiding making or cannot make a green, fuel efficient car, that the knowledge to make such a vehicle is readily available to Detroit automakers, but not their rivals, if they just try a little harder.
With all that knowledge, the czar will also need to be a benevolent souls with a strong hand, able to sit down with interested parties, automakers, unions, creditors, suppliers, auto dealers etc., and hammer out agreements to implement the plan.
The same New York Times article also quoted Dana M. Perino, the White House Press Secretary who said "Mr. Bush would insist on aiding only those automakers that can survive long term."
Gee, the car czar must be near to all knowing, all powerful, and benevolent. I wonder who that could be?
A Few Side Notes:
1. Russ Roberts of Cafe Hayek has two great quotes, one by Hayek and the other by Adam Smith about knowledge and economic organization.
2. Russ Roberst also of EconTalk interviewed Jonathan Rauch, of the Brookings Institution and the Atlantic Monthly, about the Chevy Volt, GM's planned electric car. You can listen to the podcast.
3. Mark Phelan of the Freep.com writes 7 myths about Detroit automakers. Detroit's cars are not as bad as many believe.
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I think a car czar would it would be bad. In all three of the companys you have people inside of them treying to improve them. why would one person beable improve all three if a group of people can not do it.
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