Obama Forms Auto Task Force, Drops `Car Czar` Idea

President Barack Obama has decided to form a government task force to oversee the restructuring of the struggling U.S. auto industry instead of naming a "car czar" with sweeping powers, a senior administration official said on Sunday.

Obama, who last week won congressional approval of a massive economic stimulus program, is appointing Treasury Secretary Timothy Geithner as his "designee" for overseeing auto bailout loans and as co-head of the new high-level panel along with White House economic adviser Lawrence Summers, the official said.

But Obama, who is spending the Presidents Day holiday weekend in Chicago, has dropped the idea of having a single "car czar" empowered to handle the politically sensitive task of revamping of the auto industry.

"There is no 'car czar'," the official said, speaking on condition of anonymity.

There was no immediate word on when Obama plans to unveil his strategy, but General Motors Corp and Chrysler, are required to submit new turnaround plans by Tuesday showing how they can be made viable after receiving $13.4 billion in emergency aid at the end of Bush administration. automakers

The clock was ticking on crucial talks between between GM and the United Auto Workers, which resumed on Sunday after negotiations had broken off.

If GM cannot win deals to cut its debt and costs, the automaker would be left reliant on an expanded bailout from the Obama administration or forced to consider bankruptcy.

The administration official said the automakers were expected to submit their restructuring plans on time and that government teams were working with the companies and their stakeholders to resolve remaining issues.

"We will continue to engage with them on a daily basis, as we have been over the course of the last two months, to work through various issues," the official said.

"Once received, we will analyze the reports and over the course of the next week or two will meet with the companies to work through them."

Automakers and their stakeholders will be expected to "show progress in meeting the restructuring goals set forth in their plans" by the end of the month, the official said.

The presidential task force will be drawn from the departments of Treasury, Labor, Transportation, Commerce, and Energy, the National Economic Council, the White House Office of Energy and Environment and the Council of Economic Advisers and the Environmental Protection Agency.

It will be overseen by Geithner and Summers.