It is being suggested that President Obama's reelection was at least in part helped by the auto industry bailouts, or more accurately, the portrayal of the bailouts by the president and the media. It is therefore important to surmise that the precedent setting auto bankruptcy proceedings saw billions of taxpayer dollars used to not only help the industry, but to fund the reelection of the sitting president that orchestrated the process.
General Motors is criticizing Mitt Romney for running an ad that says GM cut 15,000 jobs under the Obama Administration. The Detroit Free Press reported that GM spokesman Greg Martin (speaking about the Romney ad) stated, "No amount of campaign politics at its cynical worst will diminish our record of creating jobs in the U.S. and repatriating profits back to this country."
Leaving aside for a moment the bigger issue of a taxpayer-supported entity improperly inserting itself in an election, lets examine the facts. A look at GM's annual SEC filings gives a clear picture of how many people were employed by the company both before and after the Obama Administration guided the company through a bankruptcy process.
But now the taxpayer-subsidized ($193 million) electric automaker has seen several of its $102,000+ luxury hybrids go up in smoke all at once, thanks to Hurricane Sandy.
Jalopnik.com reported Tuesday night that approximately 16 of the Karmas that were parked in Port Newark, N.J. Monday night as Hurricane Sandy approached were submerged by the storm surge. According to the Web site’s unidentified source, the vehicles then “caught fire” and “exploded.” Jalopnik has exclusive photos of the Karmas in which they all were thoroughly destroyed by what must have been an intense inferno.
A story that went viral over a week ago showed how (non)-workers at a Michigan electric vehicle battery plant, funded through the stimulus by taxpayers, spent their time playing games, reading magazines, watching movies or helping charities like Habitat for Humanity – that is, when they weren’t ‘off-duty’ on their cyclical furloughs.
Coming hot on the heels of speculation that some Jeep production may be moved to China comes a bombshell from a Bloomberg report. Fiat is now considering moving Chrysler and Jeep production to Italy.
According to the piece, "To counter the severe slump in European sales, (Fiat CEO Sergio) Marchionne is considering building Chrysler models in Italy, including Jeeps, for export to North America. The Italian government is evaluating tax rebates on export goods to help Fiat. Marchionne may announce details of his plan as soon as Oct. 30, the people said."
There is nothing like having unbiased media coverage of the all-important presidential campaign leading up to next week's election. And the media is nothing like unbiased. We see this playing out again as Mitt Romney is now being accused of misrepresenting a story that Bloomberg.com reported on Chrysler's potential outsourcing of Jeep manufacturing to China. A look at the original comments from the article gives evidence as to how unfair the criticism is and just how right Romney was for pointing out the likely future outsourcing of Jeep manufacturing.
Taxpayer stimulus waster A123 Systems has not only declared financial bankruptcy – its executives also seem to be driving toward moral bankruptcy as well.
CEO David Vieau and his lieutenants, after receiving well over $279 million in Recovery Act funds and at least $135 million from Michigan taxpayers, have run the company into the ground. Yet they have asked a bankruptcy court judge for his blessing to receive up to $4.2 million in executive and retention bonuses to see through the company’s takeover, likely by Johnson Controls.
American taxpayers should prepare themselves for another slap in the face, courtesy of the much-ballyhooed Obama auto bailouts. After spending about $85 billion to bail out Chrysler, General Motors and Ally Financial (formerly known as GMAC), taxpayers are being rewarded by Chrysler's parent company, Fiat, announcing that it is preparing to build its Jeep brand vehicles in China. In addition, according to a Bloomberg report, Fiat may end up building all of its vehicles in China, threatening the loss of more manufacturing jobs should the decision be carried out to move Chrysler manufacturing out of America.
As the presidential election nears we continue to hear about what a great job the Obama Administration did "saving" General Motors. The claims are that millions of jobs were saved and Mitt Romney wanted to let Detroit go bankrupt. A review of the facts reveals that the auto bailout process that cost taxpayers billions of dollars is hardly anything to brag about.
When President Obama says he "saved" GM, what he means is that his administration guided a bankruptcy process for the company, funded with taxpayer dollars. The repeated statements by Obama that Romney would have let the company go bankrupt are deceptive. Let's be clear, GM DID go bankrupt.