The administration stepped back over the weekend from naming a “car czar,” as it had planned, to oversee the restructuring. But according to people familiar with the task force, it named former Lazard Freres & Co. investment banker Ron Bloom a key adviser. Mr. Bloom, who made a name advising U.S. steelworkers to accept major concessions in several bankruptcy cases, is expected to take the task force’s lead role, a senior U.S. Treasury official says.
People who know Mr. Bloom expect him to be tough on the auto makers, the United Auto Workers and other parties involved in their restructuring.
“The management of the Big Three are probably not going to like what Ron Bloom has to say; the UAW is not going to like what Ron Bloom has to say; and certainly the stockholders and creditors will not like what he has to say,” said Michael Psaros, a co-founder of private-equity group KPS Capital Partners, who has worked with Mr. Bloom in and out of bankruptcy courts. He adds that Mr. Bloom has “repeatedly shown an ability to transform struggling companies into profitable going concerns.”
Hmmm, Lazard Freres. That was Felix Rohatyn’s bank – Rohatyn, ‘the banker who saved New York City’. Look him up.
Mr. Bloom will probably find the U.S. auto industry magnitudes harder to revitalize than the steel industry. Steel customers buy primarily on the basis of price, and don’t really care who makes the stuff. Not so for automobiles, where brand identity is critical. So many people have soured on the Big Three nameplates that they will never return in substantial numbers no matter how lean and efficient those manufacturers become.
I have a 1998 Ford Ranger with 160K miles on it. Runs like a top and is fairly decent on gas. It had been wrecked. I bought it used and have had it for over six years. I paid $6,000 for it when I bought it. My wife had a chevy blazer with well over 150,000 miles on it. Got it used also. We gave it to charity because we used it for travel and it was a little heavy on gas. We just bought a new Jeep Patriot. It is fairly new but seems sound. I have owned Hondas, Toyotas, Nissans, and Fords. I love my Ranger and am putting a 5.0 engine in a Ranger. They are a great vehicle. I am not at all sour on American car products. The ones I have had have served me well!
My wife and I own a 2004 Pontiac Montana extended wheelbase minivan, and we bought it so that we could more easily take my wheelchair with us when we go shopping or on trips. Gets pretty good mileage, is comfortable and roomy…..carries seven…..and is well-appointed. As far as I’m concerned, it has every minivan on the market beat by far…..and Pontiac isn’t making them any more! We don’t want a small car or van…..we need a van big enough to do what we want it to do, and the current offerings on the market just aren’t BIG enough!