News that makes you want to go “Where’s your head?”  Obama’s Own Report on GM Says Plan to Build Non-Gas-Burning Car Would Not Save Company

The report on General Motors released by the White House says the company’s restructuring plan will not lead to a stronger company, in part because the beleaguered auto giant’s proposal to rely more heavily on advanced, fuel-efficient cars is not commercially viable.

The report’s findings stand in stark contrast with the President’s chief goal for America’s auto industry: leading the world in green car production.

“I am absolutely committed to working with Congress and the auto companies to meet one goal:  The United States of America will lead the world in building the next generation of clean cars,” Obama declared Monday at a press conference marking the report’s release.

The GM portion of the report, authored by the President’s Auto Task Force, finds that GM’s restructuring plan is not viable because it is based on economic assumptions that leave too little room for error, should any of the company’s ideas fail.

“In the end, GM’s plan is based on a number of assumptions that will be very challenging to meet,” the report finds, adding “after substantial effort and review, the President’s Designee has concluded that the GM plan, in its current form, is not viable and will need to be restructured substantially.”

Read about those challenging assumptions at the link.

Oh, and labor costs aren’t included in the grand plan, either.

Another part of the Obama Automotive Vision is to back warranties.  But he doesn’t have the authority.  Obama Needs Congressional Approval to Guarantee Auto Warranties, Says Democrat Budget Chair

“I would think that for a government officer to extend a warranty that will create a liability for the government, an act of law would be required,” House Budget Chairman John Spratt (D-S.C.) told CNSNews.com. “If I were the beneficiary of the warranty, I would certainly want to know the entity that extended it to me had legal authority to grant it.”

The House is clueless:

House Majority Leader Steny Hoyer (D-Md.) told CNSNews.com Tuesday that he did not know where President Obama got the authority to undertake the entire auto bailout plan, a plan which requires a restructuring by GM, the merger of Chrysler with Fiat and a commitment by the auto makers to produce more fuel-efficient vehicles in order to get additional federal money from the Troubled Assets Relief Program (TARP). The two car makers have already received $17.4 billion in loans from TARP.

The administration may be acting under the broad authority of the Budget and Accounting Act of 1921, Spratt told CNSNews.com Wednesday. But, he stressed if it is not backed by some legislation, it should be.

“You asked me something on which I am absolutely cold. I don’t know a damn thing about it other than what I learned years ago doing procurement work in the Pentagon,” Spratt said. “I would think as a matter of principle, this ought to be backed by legislative action. But I also think there will be some legislation to implement whatever the plan is.”

Presidential overreach by using TARP money for GM?

Istook said the legal authority of the administration to embark on the auto plan is a question that needs to be asked of the entire bailout system.

“It’s on a par with other things,” Istook said. “The money they are using comes from the $700 billion bailout passed by Congress. The administration claims a blank check.”

The actual TARP language approved by Congress only authorized the secretary of the treasury to spend the money purchasing “troubled assets” from financial institutions.

The TARP law specifically says, “The Secretary is authorized to establish the Troubled Asset Relief Program (or ‘TARP’) to purchase, and to make and fund commitments to purchase, troubled assets from any financial institution, on such terms and conditions as are determined by the Secretary, and in accordance with this Act and the policies and procedures developed and published by the Secretary.”

So taxpayer money specifically targeted for use in the financial sector is being used wherever the President wants it to go.  That’s a political slush fund.  Whatever happened to the rule of law?  Who cares, when the opportunity to seize power knocks so loudly?

Not Congress, because they will let him have his way:

Rep. Heath Schuler (D-N.C.) supports guaranteeing the warranties, and does not know if congressional action is necessary. But he said he would like for Congress to be involved.

“As always, as a member of Congress, we’d like to have our say so, without a doubt we’d like to have our say so,” Schuler told CNSNews.com.

How can they not, at this late date? Too bad Congress didn’t take that attitude before it passed TARP.

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