Outgoing auto recovery czar Ed Mongomery, shown with Michigan Gov. Jennifer Granholm.

After 15 months on the job, the “czar” overseeing White House efforts to revive communities hit by the automotive downturn is stepping down.

Ed Montgomery, who previously served as a dean at the University of Maryland, has been named the new dean of public policy at Georgetown University.  His departure will put pressure on an administration struggling to soften the blow delivered when General Motors and Chrysler declared bankruptcy, last year, using court protection to close dozens of plants and assembly lines across the country.

In a statement from the White House, President Barack Obama praised Montgomery for his “tireless effort to cut through red tape and speed the economic recovery for those hit hardest by the auto industry’s struggles.”

After years of steady downsizing, GM and Chrysler cut even more plants during their brief runs through bankruptcy court, last year.  Their shuttered factories now dot much of the country, and communities across the nation have been hammered by not only the loss of jobs but sharp declines in revenues from companies that often served as the biggest local taxpayers.

In March 2009, as it became clear the two automakers would be forced to declare Chapter 11 in order to win much-needed federal bailout packages, Pres. Obama declared his commitment to “ensure that the full resources of our federal government are leveraged to assist the workers, communities and regions that rely on our auto industry.”

In some instances, plants impacted by the twin bankruptcies are finding new life.  A GM assembly plant in Delaware, for example, has been sold to the California-based start-up, Fisker Automotive, which plans to use the facility to produce a new line of plug-in hybrid-electric vehicles, or PHEVs.

It’s unclear how much of a blow will be delivered to the recovery effort by the departure of Montgomery, who previously served the Clinton Administration, ultimately rising to  the role of deputy secretary in the Labor Administration.

“While Ed will be missed,” the current President said, in his statement, “my administration’s commitment to autoworkers and their communities remains strong.”

For at least the time being, Montgomery’s duties will be split between Labor Secretary Hilda Solis and NEC Director Larry Summers, with a full-time replacement to be named later.

Don't miss out!
Get Email Alerts
Receive the latest Automotive News in your Inbox!
Invalid email address
Give it a try. You can unsubscribe at any time.