Auto task force begins hard work

The high-powered White House task force looking at how to save the US auto industry urged a "fundamental restructuring," but offered few details in their first meeting today.

Treasury Secretary Timothy Geithner and National Economic Council Director Lawrence Summers are leading the group, which also includes the secretaries of Transportation, Commerce, Labor, and Energy; the head of the President’s Council of Economic Advisers; the director of the Office of Management and Budget; the EPA administrator; and the director of the White House Office of Energy and Climate Change.

They are reviewing the restructuring plans submitted this week by General Motors Corp. and Chrysler LLC, which are seeking billions more dollars in federal aid.

Chrysler, which took $4 million in federal loans in December, said it needed $5 billion more even as it unveiled plans to cut three vehicle models and 3,000 jobs. GM, which has received $13.4 billion in government loans, said it will need between $9 billion and $16 billion more. It said it will cut 47,000 more jobs worldwide and close five more US plants.

"The designees attending today’s meeting presented their initial analyses on the auto companies’ restructuring plans," the White House said in a statement. "Participants discussed issues including financial and operational restructuring, improving competitiveness of wage and benefit structures, and progress toward creating clean, competitive cars of the future. Secretary Geithner and Director Summers emphasized the urgency of the issues affecting the American auto industry and the need for fundamental restructuring to achieve long-term viability."