WASHINGTON - An Obama administration official who helped restructure the auto industry and brokered a recent deal with automakers to boost fuel efficiency to 54.5 miles per gallon by 2025 is leaving the White House.
Ron Bloom, a former investment banker and adviser to the United Steelworkers, served as the car czar from July 2009 through February of this year, overseeing the successful initial public stock offering of General Motors Co., is stepping down, the White House confirmed Tuesday.
"For the past two and a half years, Ron Bloom's leadership and expertise has helped us put America's automakers back on the road to recovery, launch new partnerships to make our manufacturers more competitive, and set aggressive fuel economy standards that will save consumers and businesses money at the pump," said President Barack Obama in a statement. "I'm grateful for his service, and wish him well in his future endeavors."
In an interview, Gene Sperling, the director of the National Economic Council and a Michigan native, said the administration plans to replace Bloom and keep a focus on manufacturing. In the interim, Sperling plans to keep a broader day-to-day focus on manufacturing, reported The Detroit News.
Bloom's deputy, Jason Miller, is remaining on the job.
"I don't think anyone other than the president has been more critical to manufacturing and the auto industry than Ron Bloom," Sperling said. "He is uniquely talented and had enormous credibility with labor and the business community."
Bloom, 56, joined the Obama administration's auto team in February 2009 as the deputy to Steve Rattner. Rattner left the administration after the bankruptcy exits of GM and Chrysler in July 2009 and Bloom succeeded him as the top auto adviser.
Bloom was an advocate of saving Chrysler over the objections of some colleagues. He pushed to keep as many auto jobs as possible and was often the face of the auto rescue, testifying before Congress and talking to reporters about the administration's $85 billion industry bailout.
"I am grateful to have been given the opportunity to serve under President Obama and alongside so many talented individuals who worked tirelessly to strengthen the economy and help communities across the nation," Bloom said. "We've faced many tough choices and dealt with numerous challenges over the past two and a half years — from restructuring the American auto industry to developing historic fuel efficiency standards. I am confident in this administration's ability to build on these accomplishments and continue our efforts to revitalize the manufacturing sector."
In an October 2010 speech at George Washington University, Bloom recounted growing up in New York City and being pressured to become a doctor or lawyer.
"I didn't like the sight of blood and so I was on the path to be a lawyer," Bloom said.
Bloom, who has a undergraduate degree from Wesleyan University, ended up getting on the wrong side of a political fight at the Service Employees International Union, he opted not to apply to law school, but applied to the Harvard Business School instead.
"I basically said, 'This isn't very hard. You have 800 students. You need like one union guy,'" Bloom said. "That seemed like a fair distribution and so they let me in."
He has emphasized the need to shift away from "misguided policies" that led to stagnant job growth and urged efforts to reduce income inequality.
"We cannot think about job creation in a vacuum," Bloom said in 2010. "We need to make sure that the jobs that are created are good jobs, jobs that pay a decent wage, provide decent health care and the opportunity to retire with dignity."
Bloom was initially tapped with working to boost the struggling manufacturing sector in September 2009 and took on the role full-time this year. But efforts to further turn around manufacturing — including funding government programs — are likely to go nowhere, since Congress is unlikely to approve any new money. Sperling said the administration would still work to push Congress to do more to boost manufacturing.
He will leave the White House by the end of the month to spend more time with his family. He doesn't have a new job yet. He has commuted home to Pittsburgh, where his family has remained, most weekends by car.
Bloom was named one of Time Magazine's Top 100 more influential people for his role in restructuring the auto industry.
In November, President Barack Obama singled out Bloom and White House aide Brian Deese for their roles in rescuing the auto industry.
"Ron Bloom and Brian Deese are key members of the team that helped to engineer this rescue of GM and Chrysler.So it had not been for these two gentlemen, a whole lot of people might be out of work right now," Obama said. "We are very proud of them."
As an investment banker and adviser in the private sector, he worked on 50 bankruptcies and worked on very difficult union-management negotiations.
Bloom recounted the issue all workers face in jobs in a 2010 speech — especially at troubled companies.
"Inertia is the strongest force in the universe. People don't want change," he said. "The dilemma is that companies for whatever reason can find themselves in a decision where change is essential."
Bloom was the subject of some controversy after he denied in testimony before the House Oversight and Government Reform Committee that he had made a joke at a 2009 July dinner. He clarified his testimony and said it was possible he could have made the comment.
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