PLANNING FOR THE LONG HAWLEY:

Obama Cabinet dispatched to relieve auto angst (Andrea Billups, June 8, 2009, Washington Times)

Grim yet resolute faces — mayors, business owners, line workers — stared back as the secretary [Gary Locke] politely fielded questions town-hall style at Dakkota Integrated Systems in Holt, which supplies interior components such as door and instrument panels for GM vehicles.

"President Obama and the administration have no intention of being involved in the day-to-day operations of GM, even though we're a major shareholder now," Mr. Locke told the crowd of about 200, gathered inside a spotless warehouse at a company that has lost employees as a result of the slumping economy and sagging auto sales.

"We need to leave that to the experts," he said. "If the federal government gets involved in the day-to-day management, including the promotion and advertisement of these great products, where does it stop?"

Even as he pushed back on future federal involvement as GM began its restructuring plan, Mr. Locke did offer one salve to this beleaguered flock of manufacturers. He promised that the Obama administration would be focused on addressing fair-trade issues for the U.S. automakers, who have long complained that U.S. trade policies have put American companies on an uneven playing field with their foreign counterparts.

If the industry is to re-emerge as competitive after the bankruptcies of powerhouses like GM and Chrysler LLC, the trade question is a key piece of the future that these stakeholders say must be addressed.

Trade protectionism would at least damage the entire economy enough that carmakers wouldn't be the poster boys for bad management.

Posted by Orrin Judd at June 8, 2009 6:15 AM