US PRESIDENT Barack Obama opted against naming a “car czar”, instead asking Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers to head a taskforce on revamping the US auto industry.

Ron Bloom, a United Steelworkers union adviser and former Lazard vice-president, will join administration members on the team, White House press secretary Robert Gibbs said yesterday.

The president was under pressure to say who would handle the issue before today, when General Motors and Chrysler must give progress reports on plans to restructure as a condition of $17.4 billion in US treasury loans.

The taskforce puts an end to reports Mr Obama would recruit a well-known figure from outside to serve as the so-called car czar, an approach that had some support in the auto industry.

“There needs to be a trail boss here,” said Andrew Gross, chairman and chief executive of Automotive Consulting Services. “Typically, when you have a committee set up it provides cover. Everyone’s responsible, but no one’s accountable.” Mr Geithner has “got his hands full” trying to rescue the banking industry, Mr Gross said.

After Congress failed to approve a bailout for automakers, former president George W Bush’s administration authorised loans last December. That effectively made the treasury secretary the car czar, with responsibility for making sure the companies meet deadlines and authority to revoke the loans.

Mr Geithner will remain Mr Obama’s official “designee” to oversee the restructuring. The treasury secretary can recall the aid if the automakers fail to show by March 31st that they have a plan to become profitable.

“GM welcomes the creation” of the taskforce, the company said in a statement. “We expect to meet soon with this team to share GM’s detailed restructuring plan.”

Chrysler spokesman Stuart Schorr said that the company “looks forward to working with Secretary Geithner . . . as the company continues and completes its restructuring plan.” – (Bloomberg)