Auto Czar Must Bring National Vision

Ed Montgomery, the national auto czar, comes to Michigan today to show the Barack Obama administration's support for automotive communities hard-hit by the ongoing recession and auto crisis. If he comes with a pocketful of hand-outs wrapped in Washington string, he might as well stay home. But if Montgomery is open to ideas for transforming Michigan's economy for the long haul, then the welcome mat is out.

Obama has charged Montgomery with directing "a comprehensive effort that will help uplift the hardest hit areas" affected by the automotive crisis, promising to leverage "the full resources of our federal government" to do so.

We could use some of that.

The state's full congressional delegation — Democrats and Republicans — have put some very specific requests on the table for rebuilding Michigan.

They include:

— Loans. Manufacturers need money to retool to produce advanced vehicle technologies. Loans are available under the Energy Independence and Security Act. Michigan firms should be first in line.

— Auto suppliers. Long shutdowns at General Motors and Chrysler this summer will push many suppliers to the brink. The Auto Task Force has $5 billion to stabilize the supplier base. Make sure the money gets to the right place and in a timely fashion. And make sure there is enough money to meet the goal.

— Dealers.

Dealers say they can't meet consumer demand for new vehicles because they can't obtain financing for their inventory. The Federal Reserve and Department of Treasury should make a priority of loosening credit for the dealer networks.

— Consumers. Key House leaders have reached agreement on a cash-for-clunkers measure. If it is ultimately adopted, government must assure consumers that their warranties will be backed by the federal government if an automaker fails. The administration should also move quickly on the proposal for vouchers to boost sales.

That's a good mix of short-term aid and long-term measures to rebuild Michigan's industrial foundation.

There are other ways the federal government could help.

Montgomery should also push the White House to invest more in Michigan worker retraining efforts and make it easier for local communities to apply for federal economic development assistance grants, which require a local 50 percent match — money few Michigan communities have on hand.

He should also remind Washington that Michigan has historically sent far more money to federal coffers than it has received back. Yet the state has received less than 1 percent of $4.6 billion of stimulus money allocated to the Army Corps of Engineers. The state had hoped the Soo locks in the Upper Peninsula would be upgraded to boost the shipping industry.

If Montgomery really wants to help, he'll support some of these proposals.

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