President Barack Obama dropped the “car czar” idea and will instead appoint senior administration officials to take care of the restructuring of the car industry. The president had previously considered the idea of appointing a single official with sweeping powers in the restructuring process of the ailing auto industry.

The high-level panel will be headed by Treasury Secretary Timothy Geithner, appointed by President Obama, and by National Economic Council Director Lawrence Summers, Reuters reported quoting a senior administration official.

"The president understands the importance of this issue and also understands that the auto industry affects and is affected by a broad range of economic policies," the official said. He added that President Obama wants to make sure the task of restructuring the auto industry will get the expertise and input of agencies across the government.

President Obama, who won congressional approval of a $787 billion economic stimulus program, is now facing tough decisions. He must evaluate the cost of pouring more billions of dollars into the struggling car-manufacturing companies and the cost of possible bankruptcies that could undermine plans to jump-start the economy.

There is no word from Barack Obama on those problems yet. He will soon return to the White House after he spent the Presidents Day holiday weekend in Chicago. The President will most likely present his strategy to save the auto industry.

Meanwhile, industry giants General Motors Corp and Chrysler LLC will have to submit new turnaround plans by Tuesday in which the companies must show how they can get back on the right track after receiving funds of $13.4 billion from the Bush administration.