President-elect Barack Obama thinks that firing executives could prove to be a very smart move when talking about automotive companies reorganization and agrees that using the same market strategy as Japanese competitors could revamp affected carmakers. In an interview for NBC's “Meet the President”, Obama explained that it's extremely important to help the auto industry, especially if taking into account that million of people may lose their jobs, but pointed that providing such a high funding package has to be conditioned by a series of facts.
"The last thing I want to see happen is for the auto industry to disappear, but I'm also concerned that we don't put $10 billion or $20 billion or $30 billion or whatever billion dollars into an industry, and then, six months to a year later, they come back hat in hand and say, 'Give me more',” he said according to the Wheels24.
The government initially conditioned the loan by asking carmakers to concentrate on fuel-efficient and environmentally-friendly engines, hybrids and small-displacements models, similar to European and Japanese companies which were less affected by the global recession. More importantly, the US Congress is now seeking for a so-called “car czar” that would supervise the whole reorganization process of the automotive industry in case Detroit 3 receives the funding package, with the name to assign this task to be announced in the next few days.
Asked whether the automotive companies should concentrate on production modifications or they should attempt to reorganize internal departments, Obama explained that firing current chief executives and bringing fresh ideas to companies could revamp their financial status. "Here's what I'll say, that it may not be the same for all the companies. But what I think we have to put an end to is the head-in-the-sand approach to the auto industry that has been prevalent for decades now."