April 19, 2012 |
Detroit native Mitt Romney has long contended that the U.S. automobile industry would be better off had the federal government not bailed out General Motors and Chrysler. In particular, he argued in 2008 and again in February (while campaigning in Michigan's Republican primary) that the companies should have restructured themselves without the feds' involvement through a "managed bankruptcy" process. But that ignores a crucial fact: Companies that are broke require money to keep operating, even while under the protection of a Bankruptcy Court.
October 29, 2009 |
NEW YORK -- GMAC, the former lending arm of General Motors Co., is in talks with the Treasury Department for a third injection of taxpayer aid, a further sign of the U.S. government's entrenchment in the auto industry. The Treasury Department mandated earlier this year that GMAC Financial Services raise an additional $11.5 billion in capital by next month after undergoing a "stress test" along with 18 other banks. While other banks deemed undercapitalized have been able to raise funds from private investors, GMAC has been forced to go back to the government.
November 10, 2009
Ayear after the Big Three implored Congress to save their industry from collapse, the fortunes of U.S. automakers are looking up. Ford, which lobbied for the bailout but took no aid directly, recently reported its second consecutive quarterly profit. General Motors, which emerged from bankruptcy with the U.S. government as its biggest stakeholder, announced even better sales in October than Ford. It's harder to find good news out of Chrysler, which has received $13.8 billion in federal aid. But at least its new leadership announced plans this month to break even by 2011 and pay taxpayers back by 2014.
April 1, 2009 |
A day after the president threw down the gauntlet for the American auto industry, General Motors Corp. began the work of selling cars anew. On Tuesday, even as its new chief executive acknowledged the growing possibility of bankruptcy, the ailing carmaker announced an aggressive new incentive plan that, in part, will cover car payments for customers who lose their jobs.
May 8, 2012 |
Presumptive GOP presidential candidate Mitt Romney is again claiming credit for saving the U.S. automobile industry. On Monday the former Massachusetts governor visited a manufacturer of truck parts in Euclid, Ohio, where he was interviewed by a local television station. The reporter noted that the manufacturer, Stamco Industries, may owe its survival to the federal government's decision to throw lifelines to General Motors and Chrysler in early 2009. Romney responded by giving his own version of events: "My own view, by the way, was that the auto companies needed to go through bankruptcy before government help.
April 25, 2010 |
Unexpectedly good news about the government's auto industry bailout has bolstered the case for comprehensive federal regulations for the financial system, President Obama said in his weekly address Saturday. Obama, facing public unease over unprecedented government interventions in the economy, noted that the Treasury Department found that the bailout of General Motors Corp. and Chrysler Group "will end up costing taxpayers a fraction of what was originally feared," because those companies have performed far better than expected after getting federal help.