THE OBAMAMOBILE - AT 9:01 A.M. ET: 

WASHINGTON (AP) -- President Barack Obama plans to announce a new aid package for General Motors and Chrysler in the coming days and says the carmakers must make ''pretty drastic changes'' to save their industry...

...''We will provide them some help,'' Obama said. ''I know that it is not popular to provide help to auto workers -- or to auto companies. But my job is to measure the costs of allowing these auto companies just to collapse versus us figuring out -- can they come up with a viable plan?''

He added: ''If they're not willing to make the changes and the restructurings that are necessary, then I'm not willing to have taxpayer money chase after bad money.''

COMMENT:  It's hard to argue with Mr. Obama's logic on this.  But the whole thing should make us uneasy.  Okay, the auto industry must change.  No doubt about it.  But who dictates the changes?  Washington?  What does Washington know about making cars? 

The problem is that the "changes" may incorporate political ideology, requiring power systems that may have more political support than engineering strength.  And yet, federal money brings with it federal oversight.  Taxpayers properly demand that. 

Maybe bankruptcy is the best course for the companies, although car makers in bankruptcy will find it very difficult to sell cars.  Over time, though, if they reorganize and bring in car visionaries, rather than leaders, however admirable, drawn from the finance side, they may become giants again. 

March 27, 2009