Quoth Mitt Romney in the NYT: "Let Detroit Go Bankrupt"
Mitt Romney, former Massachusetts governor, former entrant in the marathon to win the White House, and current automotive industry expert (who knew?) had a few things to say in the New York Times today on the potential auto industry bailout. The opening paragraph says it all: "IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won't go overnight, but its demise will be virtually guaranteed." Romney is not rooting for the end of the biz, but he believes that bankruptcy is the only way to save it because it will force a reset, and that will be the only way for the Detroit 3 to rectify entrenched structural problems. These include UAW contracts -- "a new direction for the UAW," executive perks -- "sanity in salary and perks," getting rid of old blood -- "management as is must go," just for starters.
Romney believes that the auto industry is crucial to America's national interest in more ways than one. And he isn't against helping the U.S. automakers, but believes that a shock to the system is the only thing that can rescue it, long term. Have a look at the piece and let us know what you think -- but no need to make a decision yet; give it another few minutes, and we're sure someone else will have another prescription. Thanks for the tip, Mike!
[Source: New York Times, Photo by Mario Tama/Getty]
Reader Comments (Page 1 of 9)
Hike15 7:23PM (11/19/2008)
so if they dont do the bailout and gm files chapter 11, what happens?
doesn't the gov give them money anyways and that will force the total reset Romney is talking about?
because that makes sense
Reply
Randy 8:54PM (11/19/2008)
Yeah.. Something like that!
For starters, this guy is a moron if he thinks a 750 Billion dollar bailout for the companies that caused this recession (Banks, Mortgage Companies etc) and then not feed what they broke? WTF! I mean use common sense.
It would make more sense to me to let the banks and mortgage companies rot in hell than the auto industry. But if we don't bail out the rich folks, we lose more! Go figure!
Romney... Here's a shout out from your old state of Massachusetts (technically a Commonwealth)
KISS MY ASS(ETS)
3seriesisking 10:07PM (11/19/2008)
Randy, that's the longest post I have ever seen. I have to be honest though......I didn't read all of it.
john 10:11PM (11/19/2008)
and I believe what Romney believe about detroit situation. They need a fresh start and kick those punkass CEO and hire someone who can change their direction.
Craig 6:46AM (11/20/2008)
As an outsider (Australian), it looks like Detroit does need a complete reset. Combine the onerous UAW contracts and the management that has been very slow to react to market trends over the past 40 years and you have a great big noose around the necks of the Big 3..
Randy 1:42PM (11/22/2008)
See.... I think flipping a bill to keep 3 million jobs is more important than letting 3 million people keep houses they can't pay for and shouldn't be in and then let me flip the bill for it. And if you're one of the people that said "Yeah I can afford a 500K house with a 50K a year job! YOU should flip the bill alone on all of it!
That's all I'm sayin.....
the vegas style guy 11:32AM (11/26/2008)
How sick am I of hearing about how it's the unions fault!?!
If we had universal helthcare like all of our major competing nations the big 3 would be almost at parity with the scabs from Toyota, Nissan, etc.. The union wage has been shown to be roughly $38/hr which is what the non-union folk are getting. The big 3 have legacy costs from a long history of being in this country when you worked loyally for a company and then had a comfortable retirement.
I am not hardly going to jump on the bandwagon of so many here who want the unions broken and the retirees to start shopping at Petmart for dinner and hitting up the local botanica for their heart pills.
AND I really don't need some cult member whose daddy was an auto exec at a failed automaker telling me anything. I don't need a silver spoonfed H8ter giving me advice on a GD thing.
Ray 7:28PM (11/19/2008)
This guy is an idiot that needs to keep his mouth shut.
Sure, let them all go bankrupt, suppliers will follow suit and let's just lay off hundreds of thousands of workers. Sounds like a great plan to help our economy...
Reply
Flashpoint 7:39PM (11/19/2008)
Mitt Romney is a billionaire who reduced his state's unemployment. He's an assshole, not an idiot.
The only reason he isn't VP right now is because the Republicans have turned into a racist party controlling just a handful of deep south confederacy states.
for every single reason I hear to bailout the automakers:
20% of America's retail
13% of america's payroll
3 million jobs...
The republicans come up with numerous reasons why not to bail them out.
KEEP IN MIND, one of the underreported facts is that the 25 billion bailout for the automakers is actually coming out of the 700 billion already approved. It isn't actualy MORE money.
Billy C. 8:04PM (11/19/2008)
The 3-million-jobs myth has already been found to be incorrect. It includes everyone who has a job that has anything to do with cars, including workers for the non-US companies as well as taxi drivers, car wash employees, etc. As a consequence, the other scare-tactic figures are bogus as well.
Jon 8:25PM (11/19/2008)
You don't understand what bankruptcy means. It does not mean "going out of business." By forcing these companies to fall into bankruptcy it will break the labor contracts and lead to REORGANIZATION.
Chapter 11 reorganization is a powerful tool through which companies can renegotiate or cancel contracts as dictated by the US bankruptcy code.
Autoblog must know an attorney - there needs to be a post detailing what bankruptcy means. Most of the readers do not understand it. This is completely understandable since it is generally a complex issue.
Randy 9:07PM (11/19/2008)
@Billy C.
Respectfully, you are completely wrong! And disrespectfully you need to get educated and stop watching tv bro...
Company | Employees
Ford 224,000
GM 252,000
Chrylser LLC 66,409
Delphi 169,500
Visteon 41,500
TRW 66,300
Standard Motor 3,800
Stoneridge 5,600
Fuel System Solutions 1,002
Modine 8,100
Navistar 15,700
And below are a few more suppliers!
Noooo.. Couldn't possibly be 3,000,000 total! And we haven't even touched upon the dealerships yet huh! ...
7-PS Packaging Inc.
A E Parts Distribution Company
Acadia Polymers Corp Illinois Acadia Woodridge
Acme Telephone
Addison Tube Forming Inc.
Addison Tube Forming Inc., C/O B Elliot
ADP
Advance Battery Systems
Advance Filtration Concepts
AGA Gas Inc
Airnet Systems Inc
Airtron Inc. Airtron Heating AC
Ajax Magnethermic Corp Industries Electric Heating
Alco Industries Inc Rice Chadwick Rubber Div
Alcon Aluminum Corporation Applied Materials Center
Allegis Group Services
Allen-Bradley
Allevard Molas do Brasil Ltda.
Allied Mineral Products Inc
Alro Steel Corp
Alstom Power Inc ABB Air Preheater
Aluminum Co of America Alcoa Sales
Amanda Bent Bolt Company
AMBROSIUS MESSEBAU
American Electric Power Co
American Standard Inc., Trane Company
American Standard Inc., Trane Parts Distribution Center
Ameritech MBL Communications Del Pactel Paging
Amoco Chemical Corp
Amoco Technology Co
Anglo American Auto Auction
Anixter Brothers
AP Technoglass
Applied Industrial Tech
Applied Industrial Technologies
Arcadis Geraghty & Miller Inc.
Arena Auto Auction Inc.
ASEA Brown BOVERI Inc ABB
Ashland Inc
Ashland Oil
Assured Auto Care
Atlas Industrial Holdings LLC Atlas Industrial Contractors
Augies Auto Care
Auto Electric Service
Auto Research
Automotive Distributors Co., Automotive Distributors WHSE
Aventec S.A. de C.V.
Avery International Corp Soabar Div
B W Rogers Company Inc
Bank of America
BASF Corporation
Bax Global Inc.
BBK, Ltd.
Beardsley & Piper LLC
Bearings, Inc.
Becks Auto Service
Benjamin Steel Company Inc
Berberich Automotive Inc
Bill Whites Key Stop
Bing Metals Group, Stamp & Assembly Division
Blanchard's Auto Service
Bob Evans Farms Inc.
BOC Group Inc A Delaware Airco Industrial Gases
BOC Group Inc A Delaware Copr BOC Gases
BOC Group Inc., The Airco Gases
Boise Cascade Office Products Corp.
Boler Company (Del) Hendrickson Stamping Division
Borden Chemical Holdings Inc.
Borden Inc
Borden Inc., Columbus Wallcovering Company
Bossert Industries Supply WW Granger
BP America Inc., BP Oil & Explorations
BP Amoco Corporation Chemicals Group
BP Amoco Corporation Commercail Bus Unt/Uto Accounts
Brambles Equipment Services
Brandenberry Super Market Cardinal Super Market
Brenzel S. Chevron
Bridgestone Corporation
Bridgewater Interiors, L.L.C.
Brose Fahrzeugteile GmbH & Co.
Brown Corporation of Waverly
BSC Newco Inc., Buckeye Steel Castings Co
BTR Inc Fasco Industries
Buckeye Boxes Inc
Buckeye Boxes, Inc
Buckeye Steel Casting Co., Div. Of Worthington Industries
Buckeye Steel Castings Co
Budget Rent-A-Car Intl
Budget Rent-A-Car of St. Louis
Burn Machinery
C & J Auto Sales & Service
Calgon Carbon Corporation Del
Cam-Car Inc Campus Towing
Capital Resin Corporation
Carbon/Graphite Group
Carrier Corp
Case Corporation
Case International
Case New Holland Global
Central Garage Company Inc
Century Rain Aid/Richton John Deere Landscapes
Cessna Aircraft Company
Chicao Rivet & Machine Co.
Choctaw-Kaul Distribution Co.
Chriss Mobile Auto Service
Cingular Wireless
Circle Business Credit
Circle Plastics Products Inc
City of Columbus Fleet Management Div
Colamco Inc ASC Colamco Inc
Collins & Aikman
Compass America Inc.
Compression, Inc
Compucom Systems Inc., Network Compatibility Group
Compuserve Corporation
Conoco Incorporation
Conoco Phillips
Conoco Pipeline
Conoco Specialty Products Incorporation
Consolidated Electrical Dist
Consolidated Electrical Distrs C E D
Continental Plastics Company
Continetal Elex CNSTR CO Gregory Electric
Cooper Industries Inc., Cooper flight Dept
Cooper Power Tools
Copper & Brass Sales Inc
Cordis Corporation Johnson & Johnson
Core Materials Corp
Corvette Corner & Cars
Cox Communication
Crane America Services Inc
CSX Corporation
CSX Transportation Inc.
Curriculum Arch Design & Dev CADDI
DA Stuart Company (Del)
Dalphimetal
Dana Corp
Dana Corp Spicer Heavy Axle Div
Dana Corp Spicer Universal Joint Div
Dana Corporation Boston Industrial Products Div
Dana Corporations Victor Reinz Division
Dearborn Sytems & Services
Delphi -E&C - Chicago Battery C/O Ryder Integrated Logistics
Delphi Packard Electric Systems – Europe
DENSO International America, Inc.
Derby Motor Service & supply
Dongyang Mechtronics Corp.
Dover Elevator
Dover Resources
Dynamit Nobel Kunststoff GmbH
Eagle Equipment
Eaton Corp Controls Div
Edwards Medical Supply Inc.
EMC 2 Corporation
EMCON
Emerson Electric
Emery Air Freight Corporation
Emery Air Freight Corporation
Engineered Plastics Products, Inc.
Enivormetric Process Controls
Equal Opportunity Financing
Ethicon Inc Johnson & Johnson
Evans Automotive Repair Inc
Exedy Corporation
Exel plc
Expeditors International Wash
Fabricated Metals
Faurecia Exhaust Systems
Federal Express
FedEx Supply Chain Services, Inc.
FIAMM S.p.A
FILTERWERK MANN + HUMMELL GmbH
First National Bank of Louisville
Fishel Company
Fishier Auto Service Inc.
Florida Production Engineering
Freudenberg Dichtungs-und Schwingungstechnik KG
G S D Services
G S D Services Inc., Gary’s Sunoco
GAMMASTAM s.p.a.
Garner Automotive
Gates Corporation
GBS Corp GBS Computer and Comm Systems
General Elecric Co GE Capital Computer Rental Services
General Electric
General Electric Company
General Electric Company Inc GE Supply
General Electric Company Inc General Electric Parts
General Electric Company Inc., GE Lighting
General Parts Inc., Carquest
General Signal Corporation Metal Forge
Gentex Corporation
Genuine Parts Company Inc, NAPA
Genuine Parts Company N A P A
Genuine Parts Company NAPA Auto Parts
George W. Wayman Inc.
Georges Garage, Georges Repair Service
Georgia-Pacific Corporation Chemical Division
GKN Driveline
Global Med-Net Inc Personal Safety Wear
Goodrich B F Avionics Systems
Graybar Electric Company Inc
Grede Foundries Inc.
Grinnell Corporation Grinnell Fire Protection
Guardian Glass Company, Guardian Auto Glass
H K Systems Inc
Halls Automotive
Hancock Automotive
Hartford Steam Boiler Inspect
Hendrickson International Corp
Hendrickson International Corp Hendrickson Suspension
Heritage Envmtl Svcs Inc
HI Tech Automotive
Highview Service Center
Hitachi Automotive Products Group
Hoffman Auto Repair
Honeywell
Honeywell Inc.
Honeywell Inc., Home & Building Control
Hunt & Knight
Huydro Aluminum Louisville, Inc.
Illinois Tool Works Inc Norwood Marking Systmes
Illinois Tool Works Inc Wire-Tie Systems
INA USA Corporation
Industrial & Research MSMNT Systems ABB
Mid State Industrial Inc
Inergy Automotive Systems
Injectec LTD
Innovative Logistics Group, Inc.
Installed Building Products/IBP
Intellect Controls Group Inc.
International Paper Co
Jamestown Plastic Molders Inc
Janssen Pharmaceutical Inc.
Johnson & Johnson
Jim Hendrix Automotive
JMAC Inc.
John Crane Inc (Del)
Johnson Controls SSD Div
Johnson Controls, Inc.
Jones Day Reavis & Progue
Kaiser Aluminum & Chemical Corp.
Kaman Industrial Tech Corp
Kansas Turnpike Authority
Kennametal Inc
Kennametal Inc Erickson Tool Div
Kenwood BP Service
Keystone Powered Metal Co.
Keystone Powered Metal Co
Kirk & Blum Manufacturing Co
Koch Carbon Inc
Kollmorgen Corp Macbeth Div
Koyama Co. Ltd.
Kwang Jin Sang Gong Co., Ltd.
L D M Technologies Inc.
Laidlaw Transit Inc
Lantech Inc
LDM Technologies Inc.
Lear Corporation
Lear Seating Corp
Libbey Owens Ford Co LOF Auto Glass
Libbey Owens-Ford Co
Liebert Global Services
Liebert Corporation
Liebert Corporation Liebert Learning Center
LJB Group, Inc.
Loctite Corp
LSI Unisource Inc.
LTV Steel Company Inc, L-S II Electro-Galvanizing Co.
Lydall Central Inc.
M A Hanna Resin Dist Co
Magee Rieter Automotive Systems
Magid Glove Safety MFG Co LLC
Mahle Valve Train Inc.
Marathon Oil Corp.
Mark & Stacey Moore Electrical Contractors
Masco Corporation
McGinnis Farms, Inc.
McNaughton McKay Elc of Ohio
Mead Corporation Pressstock
Menasha Corporation Murfin Division HQ
Mercer, Inc.
Meridian Automotive Systems – C Goodyear Jackson Plant
Metal Powder Specialties Inc.
Metalbages, S.A.
Metel Improvement Company
Methode Electonics Malta Ltd.
Metokote Corp
Mid-West Fabricating Company Rock Mill Division
Midwest Sprinkler Corp
Millers Arlington Service Center, Arlington Marathon
Minacs Worldwide, Inc.
Mitsubishi Electric Automotive America, Inc.
Morgan Design Group
Motion Industries Inc.
Motorola
Motorola Communications & Electric Inc.
NGK Spark Plugs (USA) Inc.
Nicor Inc Nicor Enterchange
Nippon Antenna (Europe) GmbH
Nisource Corporation Services Columbia Gas of Ohio
Northern Illinois Gas Company
Northwest Controls Inc
OCE-USA Inc.
OCE-USA Inc., OCE Engineering Systems Div
Ohio State University Academic Affairs
Ohio Waste Systems Inc.
Ondeo Nalco Inc. Nalco Chemical Company
Ortho Biotech Inc Johnson & Johnson
Outlet Broadcasting Inc WCMH-TV
Pabco Fluid Power Co. (INC)
Panasonic Automotive Systems Co
Parker Hannifin Corporation Tube Fittings Division
Penske Truck Leasing Co LP
PPG Industries, Inc
Professional Service Inds Del
Quality Products Inc. Multipress Division
R B & W Corporation, The Fastener House
R O Sords Co., Anderson Bolds Div
Ranco Incorporated
Ranco Incorporated Ranco North America
Rapid Design Service Inc RDS
Rassini, S.A. de C.V.
Raytheon Aircraft Company
RB & W Corporation the Fastener House
Regal Plastics Division, Global Automotive Alliance
Rexel Southern Electric Sup Co Rexel Elgee
Rexnord Corporation Bearing Operations Div
Reynolds & Reynolds Co.
Reynolds Metal Co
Reynolds Metals Company Reynolds Aluminum
Rimrock Corporation
RMT Inc
Robert A Piper Inc. Sunoco
Robert Bosch GmbH
Roppel Industries Inc., Roppel Industries Col Div
Ross-Willoughby Company (INC) Valley Camp Stores Co
Ryder Integrated Logistics
S & H Auto Service Inc.
S D I Operating Partners LP Fauver Service Center
S D I Operating Partners LP Fauver, J N Co
Safelite Glass Corp
Safety Solutions Inc, Pro-Safe
Safety Today Inc., Kentucky Safety
Samlip Ind. Co., Ltd.
Sandvik Seamco
Saturn Electronics & Engineering, Inc.
Schuler Incorporated
SDI Operating Partners
Securitylink Inc Ameritech
Securitylink Inc., Ameritech Advertising
Senninger Plumbing
Servicemaster Co LP
Servicemaster Co LTD Partnr Seaboard Energy Management
Servicemaster Limited Partnership Torco Pest Control
Servicemaster MGT SVCS LP
Sexauer, JA Inc.
Shanghai Yanfeng Johnson Controls Seating Co., Ltd.
Shape Corporation
Shell Oil Company Chemical Co Div
Siemens Airfield Solutions ADB-ALNACO Inc
Siemens Building Technologies Landis Division
Siemens Energy & Automation SVC o Columbus Div
Siemens Moore Process Automtn
Simpson Technologies (Del)
SKF Industrie S.p.A.
SKF USA Inc., Chicago Rawhide
Smith Brothers Trucking
Sogefi Filtration do Brasil Ltda.
Solar Turbines Inc
South Central Power Company
Southern Graphics Systmes
Southwest Bell Telephone Company
SPX Corporation
STANDARD PROFIL
Stanley Mechanics Tools Inc Mac Tools
Steel Technologies
Steere Enterprises Inc.
Stein Automotive
Stewart Corporation Transinternational System
Stile Bertone S.p.A.
Stockwell Auto Services Inc
Stone Container Corporation Recycling
Superior Die Tool & Machine Corp
Superior Industries International, Inc.
Superior Production Partner, Superior Die Tool & Machine Co.
Tadir-Gan (Precision Products) 1993 Ltd.
Taylor & Summerville BTRY Co., Battery Manufacturers Outlet
Taylor & Summerville Btry Co., Battery Manufacturers Outlet
Telesis Marking Systems Inc.
Telesis Technologies Inc., Telesis Marking Systems
Texaco Inc., Texaco Lubricants Company
Texaco Refining And Marketing
TG North America
The Gerstenslager Company
The Goodyear Tire & Rubber Co
The Goodyear Tire & Rubber Co Goodyear Auto Service Center
The Ideal Group, Inc.
The Kiemle-Hankins Company Kiemle Hankins
The Nock & Son Company
The Ross-Willoughby Company
The Ross-Willoughby Company (INC) Valley Camp Stores Co
The Timken Company
Thermal Ceramics Inc
Theyssen Elevator Co.
ThyssenKrupp Stahl AG
TI Group Auto Systems Corp
TI Group Auto Systems Corp Bundy Tubing Div
TNT Logistics
Torrington Co
Total Travel Management Inc TTM Travel
Transport International Pool
Tru Green Limited Partnership Tru Green-Chemlawn
True2form
Tune up 2000
Twist Inc
Unidynamics Corp Crane COR-Tec Div
Union Pacific Railroad Co.
Unisource Worldwide Inc.
United States Filter Corp.
United Transportation Inc., Columbus Green Cabs Inc
US Filter Dist Group Inc US Filter
US Filter Wastewater Group Subsidiary of US Filter
USA Daifuku Inc
USF Process Water Subsidary of U.S. Filter
Van Dykes Auto Repair
Van-Rob Stampings Inc.
Varlen Corporation
Venture Industries Corporation
Verizon Wireless
Vest Towing & Auto Repair
Victor Reinz Division, Dana Corporation
Wallace
Wave
WDRB
Weltronic/Technitron Corp WTC
Weyherhaeuser Co.
WFTE
WHAS
Windsor Mold Group – Automotive Components Division
WLKY
Worthing Industries
Worthington Custom Plastics
Worthington Custom Plastics Inc.
Worthington Inds Inc Ohio Corp
Worthington Industries Federal Credit Assn.
Worthington Industries Inc
Worthington Industries Inc., Worthington Machine Technology
WSU
WSYX
WTTE
WVIT Inc., WWHO 53
WW Grainger Inc., Grainger Industrial Supply
Xerox Corporation
Xerox Corporation Customer Care Organization
Xerox Corporation Technical Support Center
Yaskawa Electric America Inc.
Yazaki Corporation
York International Corporation
York International Corporation Frick Coil
Zeiger & Carpenter
nardvark 10:00PM (11/19/2008)
Um, Fail. Among others in that list are a pest control company and Budget rent-a-car. Just because a company uses domestic automobiles does not mean that they will go under if GM does. It just means they would have to get a new supplier, which would not be hard.
Quan 10:16PM (11/19/2008)
What a dumb list. You probably just copied and pasted a list of US companies from Wikipedia or something. For instance I, for one, have a hard time believing someone like Xerox will go out of business with the loss of the big three.
Randy 11:11PM (11/19/2008)
The list came from a site that had a list of companies that supplied goods and services to the US Auto Industry. Including everything from OEM parts to spraying the outside of the building for fleas like yourself ;) jk... It's a real list! Even I questioned some of them but then I didn't want to take anything out of it. I wanted it authentic!
So now does "FAIL" mean Pesticides are not used on the grounds of any auto manufacturing facility? Do they have magic pest control? Maybe they eat Magic Grits! (My Cousin Vinny)...
Seminole 11:16PM (11/19/2008)
Randy, I'm sure the pest control company has more clients than just GM...
Tai 1:14AM (11/20/2008)
That list is so short sighted...what about the Joe plumbers that use american steel to transport them from and to work? Surely all plumbers will go out of buisiness.
I guess all Auto repair shops will go bankrupt because they run out of unreliable cars to fix.
happy_penguin 1:37AM (11/20/2008)
You can nit pick over the accuracy of the list from a standpoint of what it suggests. I seriously doubt all of those companies would go out of business but many would and some would be seriously affected. All of them would no doubt feel an effect. A pest control company might have many other customers but perhaps none as big as one auto manufacturer. Make no mistake we're talking about tens to hundreds of thousands of jobs lost and not just at Chrysler, Ford and General Motors.
Ray 2:06AM (11/20/2008)
Tai wins for cracking me up!
What will all those auto repair shops do?
jimgee 9:05AM (11/20/2008)
Randy has the list of all the suppliers and how does giving/loaning money to GM/Ford/Chrysler help the suppliers and dealers?
The problem is people are not buying cars.
The money should be given to people so that they can buy new cars and that will help all of the dealers and suppliers