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Bailout Stand Trails Romney in Car Country
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Mitt Romney's position on the auto industry bailout was spelled out in an article in the New York Times in 2008 titled "Let Detroit Go Bankrupt." Romney opposed government loans to the auto industry. Because of the unusual factors that faced the auto industry such as the subprime mortgage driven financial credit crisis, financial market volatility and GM and Chrysler being shut out of credit markets, the need to maintain buyer confidence during bankruptcy, the planned bankruptcy with government loans was seen as the way to rescue a crucial part of the U.S. manufacturing industry by other business executives such as Jack Welch of GE, and by many adviors to the government from the private sector.
The Auto Industry Bailout and Mitt Romney
01/06/2008
Mitt Romney opposed the auto industry bailout. An article by Romney with the title "Let Detroit Go Bankrupt," appeared in the New York Times at the time of the bailout. Auto executive Bob Lutz says he was profoundly disappointed by Romeny's position, as the situation was at a point where government loans were necessary. Auto executives see the vindication of their position in the recovery of Chrysler, GM and Ford Motor. In a bit of irony Romney, who is from Michigan, announced his candidacy for the 2008 presidential election at the Ford Museum in Dearborn. GM and Chrysler went into bankruptcy, but this was a planned bankruptcy, with the support of the U.S. government and a pathway set with loans and conditions so that would lead to eventual recovery. The fear was that a chaotic bankruptcy process would permanently impair the American auto manufacturing industry- and the planned bankruptcy with government conditions and loans was meant to avert this and still allow shedding or restructuring of burdensome obligations- as this way buyers would still have confidence to buy automobiles from GM and Chrysler. Auto executives point out that the private markets had already shut out GM and Chrysler from financing. Retired GE executive supported a planned bankruptcy with government help, because of the importance of the auto industry to the U.S. economy, in the Nov. 18, 2008 issue of Business Week.
Grouped Articles
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
New York Times 12/27/2011
U.S. Remaining Stake in General Motors
Wall Street Journal 12/10/2013
U.S. Car-Making Boom? Not for Auto-Industry Workers
Wall Street Journal 03/24/2015
Bailout Stand Trails Romney in Car Country
New York Times 02/19/2012
Dow Chemical's CEO on How to Revive Manufacturing
Wall Street Journal 02/23/2012
The U.S. government's recovery of funds used to bailout insurers, banks, Fannie, Freddie, and auto companies
11/16/2010
The US government still has a ways to go to recover funds from the auto bailouts. AIG is still costly. Fannie and Freddie are an entirely different story, a debacle with huge additional funds needed.
Grouped Articles
Freddie's Profit Soars on Housing Rebound
Wall Street Journal 05/08/2013
Fannie Mae to pay $59.4B to Treasury - The Washington Post
Washington Post 05/09/2013
Fannie Chief: Payout Must Not Delay Revamp
Wall Street Journal 05/10/2013
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
Fannie, Freddie Payments Nearly Match Aid
Wall Street Journal 11/08/2013
White House Rejects Fannie-Freddie Recapitalization Plans
Wall Street Journal 11/23/2013
Business leaders give their suggested actions for the Big Three automakers crisis.
11/18/2008
Welch of GE and others with the experience and insight into the problems involved in transformative change say what they see as a suggested action plan. The situation before the government led auto industry bailout and the planned bankrutptcy filings at GM and Chrysler.
Grouped Articles
U.S. Remaining Stake in General Motors
Wall Street Journal 12/10/2013
GM: The Case Against a Bailout
BusinessWeek 11/18/2008
Bailout Stand Trails Romney in Car Country
New York Times 02/19/2012
The future for auto sales in the American market after the 2009 auto crisis.
01/12/2009
Differing views on the prospects for the auto industry looking forward, and what will determine success. The situation in the auto industry before the government led bailout and the planned bankruptcies of GM and Chrysler.
Grouped Articles
Chrysler Posts $172 Million Loss Amid Sluggish Sales
Wall Street Journal 08/09/2010
Chrysler’s Fall May Help Administration Reshape G.M.
New York Times 05/03/2009
U.S. Auto Sales Surge in December
Wall Street Journal 01/06/2015
Wall Street Journal 07/30/2009
Car Sales Are Stuck in Slow Lane
Wall Street Journal 06/29/2010
Car Makers Help Drive Economic Recovery
Wall Street Journal 07/27/2011
How debt can suddenly sink firms as business swings lead to a drying up of business.
10/14/2008
It can happen to GM and Chrysler, and a near miss for Ford and Morgan Stanley. Goldman Sachs is only pretending that it did not have a near miss after Lehman's collapse. The same can happen to an architectural firm Yamasaki as corporate real estate market collapses in 2009. The volatility and nervousness in financial markets in 2008 that shut companies out of credit markets and led to the government led auto industry bailout with planned bankruptcy filings.
Grouped Articles
A Warning Light to Alert the I.M.F.
New York Times 09/21/2011
After a Financial Flood, Pipes Are Still Broken
New York Times 09/14/2013
Morgan Stanley Memo by John Mack
Wall Street Journal 10/14/2008
Anatomy of the Morgan Stanley Panic
Wall Street Journal 11/24/2008
Wall Street Journal 03/14/2009
Morgan Stanley Comes Up Golden
Wall Street Journal 07/22/2011
The cost to the U.S. government and taxpayers for the auto industry bailout
06/02/2011
Grouped Articles
New York Times 04/13/2013
Cost of Bailouts Continues to Decline
Wall Street Journal 05/10/2013
U.S. Remaining Stake in General Motors
Wall Street Journal 12/10/2013
Wall Street Journal 06/02/2011
On the Road to Detroit's Big Pileup
New York Times 10/01/2011
New York Times 01/26/2012
Ford's push for fuel efficiency with government funding- 2008-2012
02/28/2006
Ford's efforts in this area after the GM and Chrysler bankruptcies. Conditions on fuel economy set by the government for companies taking financial asistance or loans from the government and for the auto industry bailout.
Grouped Articles
Ford Remakes F-150, the Nation’s No. 1 Vehicle
New York Times 01/13/2014
Wall Street Journal 01/17/2014
Ford Among First to Get Loans for More Efficient Cars
New York Times 06/24/2009
Ford looks to lead pack in fuel eficiency.
Detroit Free Press 01/09/2010
Cars shrink under pressure from government and consumers.
Detroit News 01/09/2010
Small Engine shift signals big changes for buyers.
Detroit News 01/09/2010
Ford's crisis point in April 2006.
05/05/2006
A chart compiled by J.P. Morgan in 2006 showed credit markets rated a default by Ford in three years as more likely than one for GM 43% to 34%. The same year 2006 when Alan Mulally was hired to change Ford. In 2009 all three Detroit automakers were in critical condition- only Ford avoided bankruptcy, which says that this chart was prescient about the conditions of the U.S. auto industry. The conditions in the auto industry before the government led bailout of GM and Chrysler and the planned bankruptcies.
Grouped Articles
Ford Speeds Up Succession Plan
Wall Street Journal 04/22/2014
Ford's Mulally Talks Mark Fields, Business in China and the New F-150
Wall Street Journal 04/22/2014
Is Ford Rolling Backward With 'Way Forward'?
Wall Street Journal 05/05/2006
BusinessWeek 05/25/2006
On the Road to Detroit's Big Pileup
New York Times 10/01/2011
Search Begins for Next CEO at Ford
Wall Street Journal 12/06/2011
Financial squeeze on dealers as GMAC, Ford Credit and Chrysler's financing arm cannot provide same level of support.
04/04/2006
As the automakers financing groups GMAC, Ford Credit and Chrysler's car financing arm see a deterioration in their condition, dealers are facing a squeeze too. The loans and financing previously available are being phased out for some dealers. The situation as the auto industry in Detroit faces the need for a government led bailout and the planned bankruptcy filings for GM and Chrysler.
Grouped Articles
GM Seeks Partners for Car Loans
Wall Street Journal 06/24/2010
Tight Credit Puts Squeeze On Big Three Auto Dealers
Wall Street Journal 08/28/2008
Wall Street Journal 01/11/2011
For Car Dealers, a Bleak Lot Brightens
Wall Street Journal 02/23/2011
GMAC: Is GM Selling Its Seed Corn?
BusinessWeek 04/04/2006
On the Road to Detroit's Big Pileup
New York Times 10/01/2011
Shifts in customer buying habits in the U.S. auto industry that hurt GM, Ford and Chrysler in 2008-2009
04/12/2006
Shifts away from larger vehicles in the American auto industry. A significant shift was underway in the US auto industry by the middle of 2008 towards fuel efficient automobiles as gasoline prices went over $4.00 per gallon, and consumer net worth declined significantly with decline in housing and stock prices causing cuts in spending. The situation in 2008-2009 before the government led bailout and the planned bankruptcies of GM and Chrysler.
Grouped Articles
Ford Clips Toyota's Wings in California
Wall Street Journal 07/17/2013
Ford Remakes F-150, the Nation’s No. 1 Vehicle
New York Times 01/13/2014
Chrysler’s Fall May Help Administration Reshape G.M.
New York Times 05/03/2009
Why Gas Feels Cheap—and Why It’s Not, Historically Speaking
Wall Street Journal 01/04/2015
Ford and Chrysler Unveil Their Redesigned Pickups
New York Times 01/14/2008
Collapse in Demand For Large SUVs Leaves Owners in a Bind
Wall Street Journal 06/02/2008
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