Whereas Rattner was seen more as a deal maker—a skill that was considered vital several months ago to keep General Motors and Chrysler from completely collapsing—Bloom’s union background is seen as more important now that Obama’s auto task force is focused on day-to-day restructuring to complete the auto giants’ transition back to viable business operation.

 

Bloom was already part of the task force, chosen because of his work negotiating union concessions from United Steelworkers during bankruptcy proceedings of steel companies. Before that he worked as an investment banker for 10 years, including as a vice president for Lazard Freres & Co. He often worked on investment deals related to unions, such as the Goodyear Tire & Rubber Co. healthcare fund and the $4.9 billion employee buyout of UAL Corp., parent of United Airlines, in 1994.

 

Auto analyst Michael Robinet of CSM Worldwide, a Michigan consulting firm, said Bloom’s primary job will be to “get the government out of these equity positions in GM and Chrysler, preferably before the next election. The American public does not want to be long term owners of car companies.”

-Noel Brinkerhoff

 

Auto Czar Quits Post Six Months Into the Job (by Neil King Jr., Wall Street Journal)

Obama’s Chief Auto Adviser Steps Down (by David Stout and Michael J. de la Merced, New York Times)

NY AG May Press for Rattner Settlement (by David Caruso, Associated Press)

Obama Auto Advisor a Major Investor in Fund that Controlled Chrysler and GMAC (by Noel Brinkerhoff, AllGov)

Ron Bloom, Obama's Car Non-Czar (by Kate Pickert, Time)