Autoblog

UAW calls for investigation into Romney ethics violations over possible profits from auto bailouts

Scott Burgess — Thu, 01 Nov 2012 16:21:00 EST

The United Autos Workers, which has endorsed President Barack Obama, announced Thursday that its members want the US Office of Government Ethics to investigate Gov. Mitt Romney for violations.

The UAW leadership held a press conference in Toledo, Ohio, Thursday, alleging that Romney profited from the 2009 automotive bailout of General Motors and Chrysler Group through an investment in a company that itself was invested in Delphi Automotive. The irony, of course, is that Romney opposed a government bailout of the auto industry.

"The American people have a right to know about Governor Romney's potential conflicts of interest, such as the profits his family made from the auto rescue," said UAW President Bob King in a press release. "It's time for Governor Romney to disclose or divest."

The UAW based its claim that the Romney family profited on an article published in The Nation magazine. That article claimed Romney's family made more than $15 million through the auto bailouts based on investments in a company invested in Delphi.

However, after carefully examining the article, as well as another article in The Huffington Post, it remains unclear exactly how that money was made. Furthermore, the original article noted that Romney's disclosures were not illegal, meaning, in fact, that they were legal.

No matter for the UAW.

"While Romney was opposing the rescue of one of the nation's most important manufacturing sectors, he was building his fortunes with his Delphi investor group, making his fortunes off the misfortunes of others," King added.

Personnel at the Office of Government Ethics could not be reached for immediate comment.

UAW calls for investigation into Romney ethics violations over possible profits from auto bailouts originally appeared on Autoblog on Thu, 01 Nov 2012 16:21:00 EST. Please see our terms for use of feeds.

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Obama calls for trade case against China

George Kennedy — Tue, 18 Sep 2012 18:01:00 EST

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

According to an Automotive News report, the U.S. government has launched a trade case that focuses on ending Chinese subsidies of its automotive industry, which threaten American auto industry jobs.

The case claims that the Chinese government has subsidized its automotive export industry in a way that is not allowed under World Trade Organization rules. The U.S. Trade Representative's office is also pushing ahead in a separate WTO case against Chinese duties on exports from the U.S. to China.

As a result of the move, China filed a complaint with the WTO against a new U.S. law aimed at combating China's subsidies. The move is called "Countervailing duties" and includes tariffs on tires and steel.

The launching of this case comes at a time when President Obama is looking for an edge in key battleground states like Ohio, where jobs are put at risk by China's subsidies. The case allows Obama to take a strong stance one the issue; presidential challenger Mitt Romney has criticized the White House for being too soft with China as it regards defending American jobs.

The Ohio auto parts industry directly employs over 50,000 people, and China's undervaluation of its yuan currency has made for cheap Chinese products, which undercut U.S. products. Romney has vowed to declare China a currency manipulator on his first day in office, while current administration officials say much progress has been made without turning up tensions.

Due to WTO rules, China's counter-claim has enacted a 60-day period, in which the U.S. and China can talk things out. After that periods is up, China could ask the WTO to make a ruling on the matter.

Obama calls for trade case against China originally appeared on Autoblog on Tue, 18 Sep 2012 18:01:00 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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Obama reelection campaign launches auto bailout commercial

Chris Shunk — Fri, 24 Feb 2012 16:55:00 EST

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

The 2008 economic collapse in the U.S. led to what many experts call the worst recession since the Great Depression. Among the many casualties of the recession was the U.S. auto industry, which (arguably) was saved thanks to $25 billion in cash from the Bush Administration in 2008 and another $60 billion from the Obama Administration in 2009.

The Detroit News reports that 51 percent of Americans opposed the bailouts, with more Republicans being against the moves than Democrats. We're guessing far more Michigan residents were in favor of government intervention than the U.S. at large, and the Obama Administration is looking to capitalize on the move with a pro-bailout commercial.

The ad, which can be viewed after the jump, will run in Michigan throughout the weekend. The ad is hitting the airwaves as Michigan voters prepare to vote in the state's Republican primary. Every serious Republican candidate is on the record as opposing the bailout.

Continue reading Obama reelection campaign launches auto bailout commercial

Obama reelection campaign launches auto bailout commercial originally appeared on Autoblog on Fri, 24 Feb 2012 16:55:00 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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Cars and Candidates: GOP prospects stop by the Detroit Auto Show

Alex Nunez — Tue, 15 Jan 2008 10:07:00 EST

Filed under: Detroit Auto Show, Etc., Government/Legal

Click image for a gallery of politicos at the Detroit Auto Show

Last night, on the eve of the Michigan presidential primary, the NAIAS show floor played host to some political VIPs on hand for photo ops with the Detroit automakers' new concept and production vehicles. Connecticut Senator Joe Lieberman, who's stumping for John McCain, stopped by Ford, as did Mitt Romney, who was apparently given a tour the new F-150 by the mulletted one himself, Mark Fields. Over at Chrysler, we snagged Mike Huckabee as he was given a rundown on its trio of EV concepts by Jim Press. John McCain also stopped by, but we didn't catch the Arizona senator out on the show floor. Naturally, green and alternative fuel technologies were of primary interest to the candidates, and Mike Huckabee even went so far as to don a green necktie for the occasion. As far as we know, none of the presidential hopefuls stopped by to check out the Bio Fuel Ferrari, though. Oh well. Their loss. The Wall Street Journal was part of the phalanx of reporters following the candidates around the show, and we've embedded a video of their coverage after the jump.

UPDATE: Check out this video at carlist.com of Sen. John McCain, who we missed at the show, and Sen. Joseph Lieberman at the 2008 NAIAS.

Gallery: Detroit 2008: Cars and Candidates

Continue reading Cars and Candidates: GOP prospects stop by the Detroit Auto Show

Cars and Candidates: GOP prospects stop by the Detroit Auto Show originally appeared on Autoblog on Tue, 15 Jan 2008 10:07:00 EST. Please see our terms for use of feeds.

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