agent Entrepreneur logo
MenuMENU
SearchSEARCH

Rattner's Memoir Opens Curtain on Auto Bailouts

September 3, 2010
3 min to read


WASHINGTON - The Obama administration vetoed attempts by General Motors to abandon its Detroit headquarters, a new book by a former top auto adviser reveals.


The revelation comes in a 320-page memoir by Steven Rattner, who was President Barack Obama's auto adviser for six months last year, and helped shepherd the $85 billion government bailout and bankruptcies of GM and Chrysler, The Detroit News reported.

Ad Loading...


"Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry" also discloses Rattner secretly forced out GM Chairman Kent Kresa in June 2009, and offered GM's top job to Renault-Nissan CEO Carlos Ghosn.


The book paints a critical portrait of Chrysler Group LLC CEO Sergio Marchionne, other top executives and many in the government.


A draft manuscript was made available to The Detroit News by publisher Houghton Mifflin ahead of its Oct. 14 publication date.


Written with the help of a veteran auto journalist, Jeffrey McCracken, and Sadiq Malik, a former auto task force staffer, Rattner's memoir offers new evidence that the Obama administration's influence on the Detroit automakers was larger than previously revealed.


In addition to the government's role in personnel matters, and in keeping GM in Detroit, the book discloses the White House initially planned for a $100 billion bailout, but the aid package GM, Chrysler and their affiliated finance companies eventually came in at $85 billion.

Ad Loading...


The administration also considered a $10 billion fund to help auto suppliers -- but cut it to $5 billion -- and weighed but discarded a plan to provide funding to help suppliers go through bankruptcies.


Before his ouster as GM's CEO, Fritz Henderson proposed moving GM headquarters from Detroit's Renaissance Center to the automaker's Tech Center in Warren, arguing it would save money, and symbolize a commitment by the company's leadership to be more hands-on managers.


Rattner praised the idea. But a White House aide, Brian Deese, who has been heavily involved in auto policy, denounced it.


"Are you out of your mind?" Rattner quoted Deese as saying. "Think what it would do to Detroit."


Henderson proposed donating the iconic headquarters on the Detroit River to the city. Detroit received $20 million in tax revenue from GM.

Ad Loading...


The White House even commissioned an outside analysis of the impact a move would have on Detroit property values, Rattner wrote. The answer: an estimated "double-digit hit on already deflated real estate prices."


Leaving the RenCen "made a lot of strategic sense," Rattner wrote. But Michigan native Gene Sperling, a U.S. Treasury Department official, was one of many who fought the idea.


"It's over for Detroit if you do this," Sperling yelled in a meeting, Rattner recalled. "Don't do this to (Detroit Mayor) Dave Bing... He's a good man trying to do a good thing."


The request was passed up the chain to White House Chief of Staff Rahm Emanuel, "and word came down that the move would be a bridge too far," Rattner wrote.


"Fortunately, this unique intervention into a specific GM matter was never leaked to the press, saving us from having to explain how it comported with our policy of letting GM and Chrysler manage their own affairs."

Ad Loading...


In a Detroit News interview earlier this year, Henderson confirmed his interest in moving GM headquarters, but White House involvement has never been publicly reported.


Neither the White House nor GM would comment on Rattner's account.


"The book is history," said GM spokesman Greg Martin. "We're a new company and we have too much work to do and no time for book reviews."

More Industry

Photo of Cadillac Lyriq SUV on road with partly cloudy sky in background
Industryby Hannah MitchellApril 16, 2026

Used Autos Selling for More

A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.

Read More →
Photo of facade of Waldorf Toyota car dealership
Industryby Hannah MitchellApril 16, 2026

Maryland Auto Group Sells

A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.

Read More →
Line graphic showing Cox Automotive's March Credit Availability Index status
Industryby Hannah MitchellApril 13, 2026

Auto Lending Opens Up in March

Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.

Read More →
Ad Loading...
electric vehicle next to an urban charging station. EV Demand Diverges. F&I and Showroom logo
Industryby Lauren LawrenceApril 10, 2026

EV Interest Varies Regionally

U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.

Read More →
Photo of the rear of a Mercedes GLC 400 electric SUV with a skyline in the background
Industryby Hannah MitchellApril 10, 2026

Brands Weighed on Projected Recalls

Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Ad Loading...
Photo of several cars on lifts in a service center
Industryby Hannah MitchellApril 9, 2026

Franchised Dealers Stand to Gain Service Business

Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.

Read More →
Photo of office desk with open laptop on it and an empty chair next to it
IndustryApril 9, 2026

What Matters Most in Building Your Agency

The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.

Read More →
car with hood open, an arm holding a wrench, The most loyal generation text, Agent Entrepreneur logo
Industryby Lauren LawrenceApril 9, 2026

Service Drives Gen Z Loyalty

The dealership profit center plays an important role in customer retention, and generation Z customers are showing the highest loyalty rates, based on recent CDK Global data.

Read More →
Ad Loading...
Photo of man with most of his face hidden as he types on a computer keyboard
Industryby Hannah MitchellApril 2, 2026

Fake Auto Dealer Websites Frauding Consumers

The Point Predictive study traced a pattern across more than 100 websites it believes are being developed by an international theft ring.

Read More →