Car Recovery Czar Ed Montgomery Comes to Michigan

In a little noticed detail from Monday’s verdict on the auto industry, Obama named Ed Montgomery Director of Recovery for Auto Communities.

Today, the President appointed Ed Montgomery, former Deputy Secretary of the Labor Department and current Dean at the University of Maryland, to become Director of Recovery for Auto Communities and Workers. Dr. Montgomery has more than 25 years experience working on issues related to worker training and local economic development and has worked first hand with State and local government agencies and nonprofits in Michigan and Ohio on strategies to revitalizing areas hit by job loss.

In his new role, Dr. Montgomery will bring all parties – workers, firms, unions, other private sector employers, community-based organizations, state and local governments, and foundations – to the table to maximize communication and cooperation and to develop innovative strategies for relief and recovery. He will ensure that communities and workers can take full advantage of all available resources and to ensure that the funds are distributed quickly, efficiently and equitably He will work with the Administration, relevant Governors and Congressional leaders to launch new executive and legislative initiatives to support these distressed communities and help them retool and revitalize their economies. He will identify and pursue all possible opportunities, including for example,
initiatives to:

  • Maximize the effectiveness of Recovery Act funds for new and more diverse economic development for new jobs, business and industry through various means including local infrastructure, housing, education and new industry.
  • Deploy rapid response unit to communities facing plant closings to both meet immediate needs and to develop strategies for new job growth.
  • Extend Trade-Adjustment-Assistance (TAA) to the auto industry, including retraining, healthcare extensions, income support and wage insurance.
  • Attract major defense, research, green industry and other project to the region. Channel Workforce Investment Act (WIA) and other emergency grant funds to the region.
  • Work with stakeholders to develop new legislative efforts to direct emergency support to affected communities and regions, and bring new jobs and economic opportunities to these areas. 

Today, Montgomery met with Governor Granholm (and, after this presser, with Detroit Mayor Ken Cockrel) to talk about the needs of Michigan’s blighted auto communities.

Montgomery strikes me as a good choice. Unlike Steven Rattner, Montgomery has the background to understand Michigan’s issues (and once taught at MSU), and the bureaucratic chops to actually do some good.

As he explained in the video above, his wife’s family is an auto family. Granholm also said he drives an American car–another distinguishing feature from most of those Obama chose to decide Detroit’s fate–though she didn’t say what kind. 

Montgomery’s introduction, above, provides about as much detail as he was ready to give. He’s here (48 hours after being appointed) to listen, at this point.

The bulk of the questions reflected the urgency of the situation in ways that weren’t designed to elicit real information: Will you lower the unemployment rate in Michigan? What can you do before Chrysler goes into bankruptcy in thirty days? Do you realize that if GM goes under, Michigan’s unemployment may double? What can you do in thirty days? How many cars do they have to sell not to get put into bankruptcy in 30 days? (Many of these questions seemed both unclear on the process going forward for Chrysler and GM, not to mention who is making those decisions; it’s not Montgomery, it remains Rattner.)

To these questions, Montgomery repeated that he’s working for those who have already been laid off as well as anyone who might be laid off in the future.

The most interesting question asked Montgomery to compare this situation in Michigan with the experience in Katrina. 

I didn’t get a chance to ask my question–which I will try to follow up on. But it would have been, "Will you be part of the larger discussions on health care reform?" After all, if we don’t pass a real health care reform package–as opposed to the one without a public option currently being championed by Blue Dogs–then we’ll be right here in 6 months talking about the imminent bankruptcy of Ford. (And of a bunch of other companies around the country.)

In any case, I liked Montgomery. He seemed way more measured than the panicked Michiganders asking him the questions. But it remains to be seen whether this position will work. After all, aren’t our elected representatives supposed to be able to pave the way with the Federal government for us? What does it say–Constitutionally and practically–that Michigan and other auto communities will have a designated champion within the Executive Branch, even as the Executive Branch is dismantling our largest industry?

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12 replies
  1. MadDog says:

    EW, thanks for this post!

    Do you have a feel for how much Michigan is going to get from the Recovery Act, and further, where it will be spent, and finally, when it will be spent?

    Or was this the set of questions I was supposed to ask Ed Montgomery? *g*

  2. MadDog says:

    Totally OT, but I gotta say that Rachel Maddow is totally cookin’ in her interview with Colin Powell!

    Now this is what our TradMed journos need to replicate!

    Kudos Rachel, kudos!

  3. bmaz says:

    And i agree, so far I am liking Montgomery’s appointment. A lot, which kind of scares me, but there you have it. Hope his “American car” isn’t a minivan like some of those other mopes.

  4. PJEvans says:

    Maybe he can convince them that not everyone looking at cars is 6 feet tall. (I’ve never been able to drive an American car; they’re all too damned big for me. That and the assumption that comfort and style are more important than anything else, especially for women.)

  5. orionATL says:

    i’m pleased to learn about montgomery.

    i’ve have been very concerned about the obama administration’s actions on issues that i consider central to voiding the bush monarchy – most importantly those actions involving the government’s treatment of individuals who opposed bush government policy – from intimidating citizens on the street who razzed the prez or cheney, to legally harassing american muslims expressing their political views, to wiretapping any citizen/official who might pose an opportunity for j.-edgar-hoover-like blackmail or pose a political threat under the guise of electronic house-to-house searches for terrorists.

    i feel obliged to say that i am impressed with president obama’s extensive efforts to find the “right folks for the job”. like clinton before him, obama, seems to really WANT to fill major government leadership positions with folks who can get things done.

    leaving aside dick cheney’s depredations on the american presidency and constitution, nothing so uniquely identifies the bush presidency as its utter indifference over it’s entire eight years of “stewardship” to appointing competence to positions of government leadership.

  6. klynn says:

    Just in first tier supply chain, the state of Ohio will loose almost 1 million (950,000) jobs should GM and Chrysler fail. That number does not include second tier, all auto production plants (like Honda) or third tier suppliers like the Compressed Gas/Chemical/Polymer industries. Or the research chains at the Universities.

    To give an idea, Columbus, Ohio proper has a population of 750,000+ – add in Greater Columbus (Franklin County) suburbs, and you have 1.68 million.

    The job loss in the state just from first tier suppliers only would be like loosing a whole city.

    I cannot begin to wonder what the failure of the two would do to MI or Ontario (500,000).

    • klynn says:

      The state of Ohio’s unemployment is at 9.4% currently. Loosing the first tier auto suppliers would be about 10% of the total population of Ohio. Knowing second and third tier industry suppliers would also tank I think it is fair to say Ohio’s unemployment would fly up over 20%.

      Michigan’s state unemployment rate is at 12% currently (the top in the nation).

      And just an FYI to the Corker crowd, South Carolina is at 11%, North Carolina 10.7,Florida 9.4, Georgia 9.3, Kentucky 9.2, Tennessee 9.1 …Their foreign shops will take a big hit too so we can see those numbers going up as well.

      I have yet to read what the impact will be on the defense industry, our national defense or our logistics industry.

      A big hit to the logistics industry would be a national nightmare.

  7. klynn says:

    Here’s an interesting article.

    The basic economics are changing for the American automobile industry at an alarming rate. Only a few years ago, decisions on product lines, engine platforms, style platforms, safety improvements, marketing development, and fashion were made for consumer demand out five to seven years. This year, we are shocked to find original equipment manufacturers (OEMs) implementing dramatic production and model changes to be made in only one to two years for simple survival.

    The articles in the “current news” box on this publication’s front page are also of interest. Some are bits of news I had yet to read. Like, I had not read that Canada had rejected the restructuring plan on 3/30/09.

    • emptywheel says:

      Note that’s a logistical view, not a design one. The product cycle moved from 5-7 years to 3-4 in the last 5 years (the Japanese were already there). But now they’re making production decisoins on a shorter timeframe bc demand and market conditions are so volatile. So the product cycle is still 3 years, but no one knows which of those prodcuts will be produced in what numbers until months ahead of time, which is why the industry is going broke.

      • klynn says:

        Oh I know. Just thought the content of the article was interesting in terms of down-line “outcomes,” which is just a part of what an auto “recovery” dialogue is hopefully going to be all about.

  8. randiego says:

    This is off-topic, but seemed to be a good spot to put this…

    The Michigan Tourism campaign is running ads in San Diego! Something about freshwater, beautiful coastlines and lighthouses.

    Go Michigan!

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