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Bailout and gas prices hot buttons in Presidential debate

George Kennedy — Wed, 17 Oct 2012 10:44:00 EST

Filed under: Hybrid, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Electric

The pros and cons of the auto bailout and concerns about the rising price of gasoline have been a political football throughout this election season. So, it should come as no surprise that the auto industry was brought up more than a few times in last night's heated presidential debate.

Roughly a minute into the debate, the subject was raised by President Obama when asked a question about unemployment. The President's answer: "I want to build manufacturing jobs in this country again. Now when Gov. Romney said we should let Detroit go bankrupt, I said we're going to bet on American workers and the American auto industry and it's coming back."

Romney countered by pointing out that Obama followed the Governor's advice offered in his New York Times editorial "Let Detroit Go Bankrupt" from 2008. Romney stated that the President did, in fact, let Chrysler go bankrupt, and pointed out, "My plan was to have the company go through bankruptcy... and come out stronger." Obama retorted that Romney's view of taking the automakers into bankruptcy did not provide them with any way to stay open, and would have lost a million jobs in the process.

The candidates also spoke on energy and oil production, primarily in response to questions of recently spiking gas prices. The President pointed out that oil production on federal land is at its highest in 16 years and natural gas production is at its highest levels in decades. Romney responded by saying that overall oil production is down 14 percent as a result of cutting licenses for drilling. Additionally, Romney criticized Obama for blockage of the Keystone oil pipeline.

Surprisingly, yesterday's bankruptcy filing of A123 Systems was not brought up, though Republicans, including Romney, have criticized the Obama administration's investment in electric cars as well as grants and loans for battery makers. If Tuesday's Chapter 11 filing was not mentioned last night, it will most certainly come up in the days and weeks to come.

Bailout and gas prices hot buttons in Presidential debate originally appeared on Autoblog on Wed, 17 Oct 2012 10:44:00 EST. Please see our terms for use of feeds.

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Horsepower Politics

Paul Eisenstein — Thu, 13 Sep 2012 16:57:00 EST

Filed under: Government/Legal, Earnings/Financials

The Role Autos Are Playing In Deciding Our Next President

He was elected to the U.S. Senate in 1942 and served a dozen years during which his most memorable act was introducing the bill that added the words, "under God" into the Pledge of Allegiance. But to both his friends and foes alike, Homer S. Ferguson had a more important agenda that earned him the sobriquet "the Senator from General Motors."

As the recent Supreme Court decision commonly referred to as "Citizens United" only underscored, money has always played a part in politics. And for much of the 20th Century, few had the sort of money to invest in influencing government like the auto industry, especially giant GM.

But something curious has happened in the world of horsepower politics over the last few years. General Motors, in particular, has become as much a topic of debate as the force influencing the discussion. And where you stand on the subject could very well influence how you vote in this November's presidential election.

Paul A. Eisenstein is Publisher of TheDetroitBureau.com and a 30-year veteran of the automotive beat. His editorials bring his unique perspective and deep understanding of the auto world to Autoblog readers on a regular basis.

Continue reading Horsepower Politics

Horsepower Politics originally appeared on Autoblog on Thu, 13 Sep 2012 16:57:00 EST. Please see our terms for use of feeds.

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GM bans political candidates from plants until after Election Day

Jeffrey N. Ross — Mon, 27 Aug 2012 16:00:00 EST

Filed under: Government/Legal, Plants/Manufacturing, GM

Looking to avoid becoming a lightning rod for the Presidential race, General Motors is asking the candidates not to tour its plants until after Election Day. Ever since its bankruptcy in 2009 where it received billions of taxpayer dollars, GM has been used as leverage by both sides of the political aisle, but the automaker is hoping that by eliminating the presidential and presidential-hopeful photo ops, it can distance itself a little more from the negative "Government Motors" label.

An article in the Detroit Free Press says that the auto bailout is expected to play a big role at the Democratic National Convention next month, and GM is still a key topic in this discussion as it is still 32 percent owned by the U.S. Treasury Department. GM has paid back $23 billion of the loans so far. Proof of GM's unwilling involvement in politics is evident by Vice President's recent quote stating: "Osama bin Laden is dead, and General Motors is alive."

The efforts of the GM's bailout/bankruptcy recovery are still just as mixed as the issue was back in 2009. The automaker has seen big profits so far this year - $3.66 billion - and its credit rating was upgraded by Fitch Ratings, but its stocks are down 35.8 percent since 2010 meaning that the government's current investment in GM would be a loss of $15.6 billion if sold now.

In addition to GM, the article also states that the Chrysler Group is closing its doors to the politicians until after November 6. Unlike GM, Fiat-controlled Chrysler has fully repaid its government loans.

GM bans political candidates from plants until after Election Day originally appeared on Autoblog on Mon, 27 Aug 2012 16:00:00 EST. Please see our terms for use of feeds.

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Lutz stumps for Romney despite opposition to auto bailout

Zach Bowman — Fri, 15 Jun 2012 09:32:00 EST

Filed under: Government/Legal, Chrysler, GM, Celebrities, Electric

Bob Lutz has put Republican presidential candidate Mitt Romney's numerous past comments about the automotive bailout behind him, according to Automotive News. During a recent episode of "The Kudlow Report" on CNBC, the former auto executive made it clear he now backs Romney for the 2012 presidential election, saying "[Romney] now says he was totally in favor of [the bailout] and suggested it."

In 2008, Romney wrote an op-ed for The New York Times titled, "Let Detroit Go Bankrupt." The piece adamantly opposed the government bailout in favor of a managed bankruptcy for both General Motors and Chyrsler. He has maintained his opposition to the auto bailouts publicly along the campaign trail, and Lutz's comment is the first news we've heard of the candidate's apparent change of heart. As recently as February 18, Lutz himself criticized the presidential candidate for his stance, especially for suggesting that the automakers simply needed to borrow from banks. According to Lutz, the banks were in worse shape than either of the imperiled manufacturers.

But that was then. Lutz now says he forgives Romney for his earlier statements, and that his support has more to do with opposing President Barack Obama than it does any actual faith in Romney's policies. Lutz said, "You know, all is forgiven. It depends on who [Romney's] opponent is."

While speaking with The Detroit News recently, Romney said that if elected, he would quickly sell the U.S. Treasury's stake in GM. He's also criticized the Obama Administration's proposed fuel economy requirements and support of electric vehicle manufacturing and development. Having helped usher the Chevrolet Volt to market, Lutz is a major proponent of electric vehicles.

Lutz stumps for Romney despite opposition to auto bailout originally appeared on Autoblog on Fri, 15 Jun 2012 09:32:00 EST. Please see our terms for use of feeds.

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Romney vows to dump federal stake in GM quickly

Jonathon Ramsey — Tue, 05 Jun 2012 11:32:00 EST

Filed under: Government/Legal

With a multi-volume list of issues that a presidential hopeful could discuss, we aren't sure why Mitt Romney keeps circling back to the auto industry bailouts, but here we are again. He's lately swinging his stick at the U.S. Treasury Department for not having sold its 26.5-percent stake in General Motors, accusing it of holding back on the stock sale to avoid having to report a multi-billion dollar loss before the election.

At GM's current stock price, the government would lose about $16 billion by sellings its 500 million shares, a number that hasn't much changed from several months ago. Romney said the government has "no reason" for not selling, and a report of his interview with The Detroit News says that "he'd sell the stock quickly if he wins the White House." A Treasury spokesman responded with "We have to balance maximizing recovery for the taxpayers with the speed of exit."

On top of that, Romney said that if he becomes POTUS, he would take another look at Corporate Average Fuel Economy standards, believing that "The best approach is to try and build vehicles that people want, rather than having the government telling the companies what they must make." It's a line we've heard (and even uttered) often, but the nexus of government regulations, consumer desires, viable business models and long-term industry concerns is a moving target shifty enough to confuse quantum physicists.

Either way, it's clearly fair to expect more jabs from Romney at President Obama and the auto bailout as the campaign season grinds toward election day.

Romney vows to dump federal stake in GM quickly originally appeared on Autoblog on Tue, 05 Jun 2012 11:32:00 EST. Please see our terms for use of feeds.

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Obama's latest campaign ads highlight auto recovery

Jeremy Korzeniewski — Fri, 11 May 2012 15:30:00 EST

Filed under: Government/Legal, Videos, Earnings/Financials

As expected, the so-called auto bailout of 2009 has become a major talking point in the run-up to the 2012 Presidential Election. Somewhat surprisingly, however, both sides of the aisle are taking credit for the success seen by General Motors and Chrysler since the two automakers were pushed through a structured bankruptcy process.

Presumptive Republican nominee Mitt Romney has said he deserves "a lot of credit" for the resuscitation of the auto industry due to his suggestion of a managed bankruptcy of the two automakers. President Obama, on the other hand, points out that Romney was very vocal in his opposition to the auto bailout, frequently citing the editorial he wrote for the New York Times in 2009 titled "Let Detroit Go Bankrupt," in which he said the auto industry was "virtually guaranteed" to fail if Obama's bailout proceeded.

Building on previous advertisements highlighting the auto bailout of 2009, the Obama campaign has released two new videos touting the success of the automakers since the dark days of bankruptcy. Scroll down below to watch the videos for yourself.

Continue reading Obama's latest campaign ads highlight auto recovery

Obama's latest campaign ads highlight auto recovery originally appeared on Autoblog on Fri, 11 May 2012 15:30:00 EST. Please see our terms for use of feeds.

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Romney claims credit for auto industry recovery, still opposes bailout

Zach Bowman — Tue, 08 May 2012 11:29:00 EST

Filed under: Etc., Government/Legal, Celebrities

The Detroit News reports presidential hopeful Mitt Romney believes he deserves credit for the auto industry's recovery, despite the fact that he adamantly opposes the bailout. While speaking with a Cleveland, Ohio television station, Romney said he deserves "a lot of credit" because he supported the idea of managed bankruptcy. But both President George W. Bush and President Barack Obama believed General Motors and Chrysler couldn't survive the process without backing from the United States Treasury.

Meanwhile, in a 2008 opinion article for The New York Times, Romney warned the bailout would mean the end of the American automotive industry, saying "It won't go overnight, but its demise will be virtually guaranteed."

Through the lens of hindsight, we know that statement was a bit exaggerated. Both Chrysler and GM are on the right path, with the companies posting profits in North America. The Detroit News reports the auto bailout is an important topic in two crucial swing states: Ohio and Michigan.

Romney claims credit for auto industry recovery, still opposes bailout originally appeared on Autoblog on Tue, 08 May 2012 11:29:00 EST. Please see our terms for use of feeds.

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Ex-Fisker chair blames Mitt Romney attacks for DOE loan hold-up

Autoblog Staff — Fri, 20 Apr 2012 18:29:00 EST

Filed under: Hybrid, Sedan, Government/Legal, Earnings/Financials, Fisker, Electric, Luxury

Ah, election season...

Former Fisker Automotive Chairman and current investor Ray Lane is blaming Republican presidential candidate Mitt Romney for the delays in procuring federal loans that have been earmarked for the maker of the extended-range plug-in Karma and the upcoming Atlantic, according to Delaware Online.

In an e-mail, Lane said Romney is mistakenly grouping the Fisker loan from the U.S. Department of Energy (DOE) with money given to failed companies like solar-panel producer Solyndra. Lane, managing director at venture-capital company Kleiner Perkins Caufield & Byers, said in the alleged e-mail that he's planning to contact Romney, whose father George Romney was once president of American Motors Corp.

The Fisker issue is particularly acute in Delaware, where the automaker had planned to expand employment and build a production version of the Atlantic sedan (a.k.a. Project Nina) shown above at a former General Motors factory. Those plans have been put on hold as Fisker sorts out its financial situation. Delaware Online reported late last week that Fisker had laid off 12 more workers at the factory, which was characterized as "absolutely empty."

The company was set to receive $529 million in federal loans but has only received a fraction of that and hasn't received funding since last year.

Ex-Fisker chair blames Mitt Romney attacks for DOE loan hold-up originally appeared on Autoblog on Fri, 20 Apr 2012 18:29:00 EST. Please see our terms for use of feeds.

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This is Mitt Romney

Dan Roth — Sun, 25 Mar 2012 19:01:00 EST

Filed under: Classics, Etc., Government/Legal

That's right, the potential Republican Potentate is an AMC muscle car; according to the Secret Service, anyway. The Republican race for the presidential nomination is getting serious, and National Public Radio reports that the the Secret Service is stepping in to offer its protective services to the potential nominees. When this happens, code names are given to the protectees; for example, President Reagan was called "Rawhide" by those watching out for him. Mitt's new Secret Service handle? Javelin.

The candidates are presented with the list of potential security handles, and Romney apparently thought a nod to the car company his old man ran suited him just fine. Does it say something about the way he sees himself? Kenosha, Wisconsin-based American Motors Corporation was ever the cash-strapped scrapper; a bit of a contrast from Romney's well-funded election machine, but he won't be the first person to romanticize the last independent.

The biggest question we have is which one he thinks he is? A Javelin SST with the optional Go-Pack would indicate he thinks he's a serious performer, while a Pierre Cardin edition might match up more with the tastes of a man accustomed to the finer things. In any case, it will be hard to look at a Javelin from now on and not see Mitt's well-coiffed, perfect-teeth grin.

This is Mitt Romney originally appeared on Autoblog on Sun, 25 Mar 2012 19:01:00 EST. Please see our terms for use of feeds.

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Romney doubles down on auto bailout opposition?

David Kiley — Sat, 18 Feb 2012 11:05:00 EST

GOP Presidential candidate Mitt Romney is trailing in the polls in Michigan ahead of that state's February 28 primary, and the former Mass. Governor thinks the way to close the gap is to bash the bailout of the auto industry in 2009 that saved General Motors and Chrysler from being broken up and liquidated in bankruptcy court.

Romney's timing is tough, what with GM's setting an all-time record profit for 2011.

Polls have suggested that despite the obvious benefit from the bailout to Michigan, state residents have been divided about whether Uncle Sam should have stepped in to keep the automakers in tact.

My big beef with Romney is not that he opposes the bailout in principle (though he did support the bailout of Wall Street), but that he fictionalizes events of 2009 when GM and Chrysler went through bankruptcy. Romney asserts that the companies could have gone through a managed bankruptcy without the help of the federal government. Not true.

Perhaps a better tack for Romney would be to suggest that as long as GM is making such huge profits the company might pay back some of the loans granted it under President Bush. GM got billions before the bankruptcy that it is not required to pay back.

Read my entire column about Romney's odd take on history at HuffingtonPost Detroit.

Romney doubles down on auto bailout opposition? originally appeared on Autoblog on Sat, 18 Feb 2012 11:05:00 EST. Please see our terms for use of feeds.

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Bush says he'd pull the trigger on auto bailouts again

Zach Bowman — Tue, 07 Feb 2012 10:29:00 EST

Filed under: Government/Legal, Chrysler, GM

President George W. Bush recently spoke to a gathering of auto dealers in Las Vegas, saying that while he believes in the free market under normal conditions, he doesn't regret the $700 billion bailout fund used to rescue General Motors and Chrysler from the brink of collapse. Bush was quoted as saying he'd do it again, and that he didn't want there to be a 21 percent unemployment rate. The former leader avoided addressing remarks from the current gaggle of Republican presidential candidates who have criticized his decision to lend a hand to banks, insurers and automakers.

"If you make a bad decision, you ought to pay," Bush said. "Sometimes circumstances get in the way of philosophy."

Bush championed a $17.4 billion bailout for the two automakers in December of 2008 as part of the $700 billion Troubled Asset Relief Program. Republican presidential candidate Mitt Romney has said both Bush and current President Barack Obama were mistaken in bailing out the auto industry. Instead, Romney believes GM and Chrysler should have been allowed to go into a controlled bankruptcy from the start.

Bush says he'd pull the trigger on auto bailouts again originally appeared on Autoblog on Tue, 07 Feb 2012 10:29:00 EST. Please see our terms for use of feeds.

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Romney blames Obama for GM layoffs

Jeremy Korzeniewski — Tue, 20 Dec 2011 15:29:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, GM, Earnings/Financials

"The president is going to go after me. I'll go after him." That pretty much sums up every presidential race in recent memory, where it seems attacking the opposing side is just as important as proving your own personal worth. And the 2012 U.S. presidential election, unsurprisingly, is shaping up much the same.

The words above came from former Massachusetts Gov. Mitt Romney, who is in the running for the Republican nomination. According to a Romney interview conducted by Fox News, President Obama is responsible for closing factories and laying off workers during the government-backed bankruptcies of Chrysler and General Motors. Detractors would argue that factory closings and a shrinking workforce were unavoidable at the automakers and that the plans were effectively put in motion on former President George Bush's watch.

This new line of reasoning from Romney comes as he himself is under attack for his role in Bain Capital, a highly profitable Boston-based private equity firm. Depending on who you're asking, Bain was either a creator of jobs and a savior of broken companies or a group of rich investors whose sole goal was to make money at the expense of everything else. Either way, there's no denying that many facilities were closed and many jobs were lost under the ownership of Bain Capital.

As for President Obama's reaction, The Detroit News quotes Michigan spokesman for the Obama campaign, Clark Pettig, as saying:

"We know what Mitt Romney did when 1.4 million jobs were on the line - he opposed the rescue loan the president extended to avoid liquidation, and made clear he would let Detroit go bankrupt. It's no wonder he did that, because when he was a corporate buyout specialist, he laid off thousands of workers, closed factories and outsourced jobs solely in order to create profits for himself and his partners."

Welcome to election season, folks.

Romney blames Obama for GM layoffs originally appeared on Autoblog on Tue, 20 Dec 2011 15:29:00 EST. Please see our terms for use of feeds.

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