Report: Obama drops 'car czar' plan

DETROIT, Feb. 15 (UPI) -- President Barack Obama will not name a single "car czar" but will rely on senior advisers to guide the U.S. auto industry recovery, a White House source said.

Citing an administration source, The New York Times reported Sunday night that Obama would have his most senior economic advisers -- Treasury Secretary Timothy Geithner, and National Economic Council Chairman Lawrence Summers -- oversee a White House panel charged with the task of overhauling General Motors Corp. and Chrysler LLC.

The president will have Geithner oversee $17.4 billion in loan agreements previously worked out with GM and Chrysler, the administration official said. The source, who insisted on anonymity, also said Ron Bloom -- a specialist in restructuring -- will be appointed to serve as a senior adviser at the Treasury Department on the auto crisis.

GM and Chrysler are preparing to submit restructuring plans to the Obama administration Tuesday aimed at keeping government rescue funds. The cost-cutting plans are expected to contain a mix of job reductions, plant closures and union benefit reductions, The Detroit Free Press reported Sunday.

After the Obama administration gets the report, officials will have until March 31 to determine whether GM can keep the $13.4 billion loan and Chrysler the $4 billion loan offered by the government in December.

The terms of the loans require the car companies to prove they're viable and have a plan for reaching a "positive net present value."