Romney: Let Detroit go bankrupt
posted at 12:20 pm on November 19, 2008 by Allahpundit
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Or, if you prefer the way Democrats will be spinning this, “Romney to Detroit: Drop Dead.” You’ve read the op-ed, now see the video. Should an unprofitable, uncompetitive industry be forced to restructure or should the feds dump a few billion more into the national money hole? Mitt’s squarely within the conservative mainstream on this one (which wasn’t true of his position on the financial bailout), but when a would-be party standard-bearer whose family made its name running an auto company pipes up, it carries a little extra weight. At least, it does on a slow news day.
Exit question: Can we reach any conclusions about his intention in 2012 from this? Supporting a bailout would have exploded his economic cred within the party, but he could have chosen to simply duck the issue lest he alienate Michigan voters. As it is, given the Republican orthodoxy on this subject to which he’s lending his name, the state’s a mortal lock to go blue again in four years no matter who the nominee is.
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Love it…
Firebird on November 19, 2008 at 12:24 PM
totally agree with Mitt. Let them go bankrupt and make them start over.
ousoonerfan15 on November 19, 2008 at 12:24 PM
egads, I’m actually starting to like the guy.
YellowDawg on November 19, 2008 at 12:24 PM
It would be much more believable and prudent if Mittens hadn’t spent last February pandering to MI and promising the car companies bailouts.
Illinidiva on November 19, 2008 at 12:25 PM
Hmm video doesn’t want to work.
I totally agree with Romney. Detriot needs to go out…. But will it go out in a Blaze of Glory via rioting and house fires?
upinak on November 19, 2008 at 12:26 PM
I just sent you this article.
abinitioadinfinitum on November 19, 2008 at 12:26 PM
Its about time someone decided to publicly express a sane view of the situation instead of telling the public the sky will fall if you don’t let them continue to produce crap that no one wants to buy.
Chapter 11 will be the BEST thing for the “American” auto makers and the UAW, but the DemCong will tell the public that they know better because they are the DC elites and we unwashed are stoooopid.
belad on November 19, 2008 at 12:27 PM
He could support the bailout and it’d be a mortal lock to go blue. So the point here is moot.
What’s sad is that democrats/unions have destroyed the auto industry, yet the state continues to elect and support them.
Democrats rely on the beaten wife syndrome to stay elected, don’t they?
lorien1973 on November 19, 2008 at 12:27 PM
Mika agrees and Joe isn’t sure? That’s odd.
Go Mitt.
warrenmr on November 19, 2008 at 12:28 PM
Damn shame that he wasn’t the nominee.
jimmy the notable on November 19, 2008 at 12:28 PM
Mitt has it right. This is the only way the industry can survive.
Smooth Rooster on November 19, 2008 at 12:29 PM
Doin’ the right thing…
Mitt’s awesome.
beatcanvas on November 19, 2008 at 12:29 PM
Even if they do go bankrupt, I don’t support a govt. subsidy to help them restructure.
What can I say. I’m a purist.
lodge on November 19, 2008 at 12:29 PM
Mitt could rescue the auto industry. They should go Chapter 11, get rid of their current top level execs, bring in Mitt, and they’d be profitable in 4-5 years.
digitalintrigue on November 19, 2008 at 12:29 PM
And how will it differ from just another day in Detroit?
Aristotle on November 19, 2008 at 12:30 PM
Why wasn’t Mittt or Rudy our nominee?
Vincenzo on November 19, 2008 at 12:30 PM
Wow, Mitt’s sounding like a Republican. Who saw this coming?
manwithblackhat on November 19, 2008 at 12:30 PM
Good on Mitt. I wish that our elected officials had half of his brains on this issue. I’m tired of Congress subsidizing piss poor business practices.
CantCureStupid on November 19, 2008 at 12:31 PM
Because many states let non Republicans vote in the Primaries.
Youngs98 on November 19, 2008 at 12:32 PM
Don’t forget that mittens supported the bailout. It’s not like these financial firms are any more viable than the Big Three.
lodge on November 19, 2008 at 12:32 PM
If we bail them out, whose next, the aviation industry? The shipping industry? The railroad industry? There is no bottom of the bottomless pit.
Kevin in Washington State on November 19, 2008 at 12:33 PM
This just in: The Mormons are now responsible for the big 3 bankruptcy.
Firebird on November 19, 2008 at 12:33 PM
If I had run my company the way the auto manufacturers run theirs, I wouldn’t have had a company for very long. If I went to the bank for a small business loan and the loan officer asked me how much money do I really need to prop up the business, and I said “I don’t know”, I would have been politely asked to leave, and laughed at as I went through the door.
You have to be really, really, really BIG to ask for, and get the sweetheart deals the auto industry is begging for. I’d say, look pals, you’ve demonstrated you don’t know how to run a business, you don’t even know your own financial situation, take a friggin hike.
If the little guys pay for there mistakes by going belly-up, then the big guys can suffer the same demise.
TFB Detroit.
fogw on November 19, 2008 at 12:34 PM
just checked DU
I see the far-left has latched onto the dream of a govt. run “green car” industry and are decrying the repugs for union-busting
lodge on November 19, 2008 at 12:35 PM
I love the money fires!
tyrfing on November 19, 2008 at 12:35 PM
When Democrats lead:
November 19, 2008 – Michigan’s seasonally adjusted unemployment rate in October rose by six-tenths of a percentage point to 9.3 percent, according to data released today by the Michigan Department of Labor & Economic Growth (DLEG). Total employment fell by 22,000 and unemployment increased by 27,000. The state’s labor force level was little changed over the month, edging upward by 4,000.
Michigan’s October 2008 jobless rate was one and eight-tenths percentage points above the state’s October 2007 rate of 7.5 percent. In the same period, the national jobless rate recorded a similar advance, increasing by one and seven-tenths of a percentage point.
“And the Beat goes on..”
TedinMich on November 19, 2008 at 12:35 PM
It would have been interesting to see a Ziegler poll done to see how much the MSM had in picking OUR candidate for us.
abinitioadinfinitum on November 19, 2008 at 12:35 PM
If the bailout doesn’t happen, the car companies will go bankrupt, and will have to fish themselves out of bankruptcy by trying to make a superior product. And what, do you want the workers to actually have to compete with other car companies since they’ll be without their cozy union contracts? That’s unacceptable!
/sarc
Sir Corky on November 19, 2008 at 12:36 PM
Dingdingding. I don’t trust the guy.
Editor on November 19, 2008 at 12:36 PM
When it comes to economy, noone is going to handle it better than Mitt.
Vincenzo on November 19, 2008 at 12:37 PM
3 houses on fire a night compared to 20 or more a night….
Yeah I know many of them are abandoned and gutted out. But Detriot is just a huge infected wound in Michigan anymore, as deerborn (sp) is becoming. Time for a clean up with some nice lysol!
upinak on November 19, 2008 at 12:37 PM
Why stop there? Sure. Let’s let Detroit go bankrupt, but you know who should be next?
My collie says:
You’re smarter than you look, collie.
CyberCipher on November 19, 2008 at 12:37 PM
I agree with Romney but for some reason I feel like I am being played by him.
KBird on November 19, 2008 at 12:38 PM
The problem with GM going into bankruptcy is that the public doesn’t understand “Chapter this” and “Chapter that.”
The day the NYT puts “GM Bankrupt” on the top of the fold, sales will cease across the globe, suppliers will cascade into bankruptcy along with the entire dealer network. And about 3 million people directly and indirectly employed there will be out of work within a month. Would you buy a car from a company that you weren’t sure would even be able to honor basic warranty issues or have spare parts a year or two down the road? The Big 3 are 4% of the entire GDP of the US…you think a .3% contraction is bad, try whacking 4% off the top.
Youngs98 on November 19, 2008 at 12:38 PM
I don’t want people to suffer. I don’t want people to lose their jobs. I just don’t understand how bailing them out now takes care of their overcapacity/legacy cost problems. And it is a given the Dems would continue to force them to work with the unions. I think the unions do many great things, but they have to prove they finally understand they need to have the long-term interest of the corporation (and the taxpayer!) at heart. The same is true of workers. Most union people I know love their union and hate their employer.
Perhaps someone can convince the unions that new manufacturers will not move in to Michigan and hire the displaced workers if the unions continue on the same path.
I also don’t understand is all the talk at the bailout hearing yesterday that the automakers should now go forth and create green cars. They can’t pay their bills as it is, how can they use bailout money to completely redesign and retool their plants?
MayBee on November 19, 2008 at 12:39 PM
Can we please stop speculating about 2012 for a while? Please?
Heh. It’s all the unsound investment in green Jello.
Dead Hand Control on November 19, 2008 at 12:41 PM
There was a caller on a local call in show here in Columbus Ohio that said that he believes the Big 3 want to get rid of their U.S. operations anyway. He was saying that they have operations in the U.K., Asia, and Mexico and that they are showing how much “trouble” their U.S. operations are in by begging for a bailout, knowing full well that the country and congress is getting sick of the whole bailout situation.
Then when the government doesn’t bail them out, they can close their U.S. operations and point to the government the whole time saying “they’re the ones that let us fail.”
MobileVideoEngineer on November 19, 2008 at 12:41 PM
Zackly. Just one more in a long-g-g-g- line of flip-flops for MittFlop. And proof that he is running again.
james23 on November 19, 2008 at 12:42 PM
That’s because you are. He was all for saving the American auto industry when MI was a must win primary for him.
Illinidiva on November 19, 2008 at 12:43 PM
It’s probably holding out for a bailout.
YellowDawg on November 19, 2008 at 12:43 PM
Romney/Jindal 2012!
davenp35 on November 19, 2008 at 12:45 PM
lodge on November 19, 2008 at 12:32 PM
People seem to forget that Steve Forbes also supported the bail out, and Glenn Beck. Two people who are bona fide conservative.
Conservative Voice on November 19, 2008 at 12:46 PM
So what happens when the big 3 go under…and there is a war? Who’s gonna make all of our planes, tanks, and HMMWVs? Toyota?
Youngs98 on November 19, 2008 at 12:46 PM
Romney is absolutely right!!!
The choice is NOT “Bankruptcy: Yes or No” ….
The choice is “Bankruptcy: Now or Later” !!!
A bailout hurts everyone…especially innocent taxpayers…and invites currency devaluation. It will not prevent a structurally flawed industry from collapsing because of its refusal to reform itself.
landlines on November 19, 2008 at 12:47 PM
Go Mitt Go!! No bail out. And to other companies, no bail out. Let the Unions crumble to the death. This has been the biggest problem. A part of why companies moved out of the Country. Because of the Unions. Let them fall and fall hard. We don’t need Unions. Mitt is spot on. Let Detroit fall! Bankrupt and all.
sheebe on November 19, 2008 at 12:47 PM
The Big 3 don’t make any of that anyway.
MobileVideoEngineer on November 19, 2008 at 12:48 PM
I think they should be allowed to go bankrupt. That will be the only way they will learn.
SoulGlo on November 19, 2008 at 12:49 PM
So what happens when the big 3 go under…and there is a war? Who’s gonna make all of our planes, tanks, and HMMWVs? Toyota?
Youngs98 on November 19, 2008 at 12:46 PM
Not all car companies will go down. If they file chapter 11, they can continue in business. They will have no choice but to tell the Union where to go. At least that is how I understand Chapter 11. Chapter 7 is different. The Unions have been a big part of the money. Rebuild and leave Unions out. Hope I understood the difference between 11 and 7 though. If not, then still let them fall.
sheebe on November 19, 2008 at 12:49 PM
Okay, they may make the Hummers, but besides that, other companies like Northrop Grumman, GE, etc, make the planes, tanks, etc.
MobileVideoEngineer on November 19, 2008 at 12:50 PM
You can’t be a conservative and support 700billion of corporate welfare.
lodge on November 19, 2008 at 12:50 PM
Let ‘er rip. (Or is it R.I.P.? No matter.)
By the by, the leader of the Democratic Do Nothing Senate says it’s the Bush administration’s problem, anyhoo.
tree hugging sister on November 19, 2008 at 12:52 PM
Mitt isn’t socialist, so that’s why neither party likes him.
Dr B on November 19, 2008 at 12:53 PM
Kudos on Romney. That is why he should have been the nominee because he knows about economics.
mariloubaker on November 19, 2008 at 12:53 PM
He’s for wall street socialism but not automaker socialism. Nuance.
lodge on November 19, 2008 at 12:55 PM
Romney is good but can we get over the President talk? It’s not going to happen.
Firebird on November 19, 2008 at 12:57 PM
Oh???
That’s what this country needs. More nuance.
manwithblackhat on November 19, 2008 at 1:01 PM
Now I remember why I was a Romney supporter in the primaries. He is very good at getting to the bottom of a problem and coming up with a solution to it.
dglenn on November 19, 2008 at 1:01 PM
That LOAN was needed. How else would you geniuses have freed up lending between banks and to consumers?
Chubbs65 on November 19, 2008 at 1:03 PM
Nah. None of that happened when the airline industry went through a series of bankruptcies. People still flew on the affected airlines even though they had other choices. People will continue to buy new cars so long as they’re offered competitively. Only a massive change (as would occur under bankruptcy) can make the industry viable again.
JonPrichard on November 19, 2008 at 1:03 PM
lodge on November 19, 2008 at 12:50 PM
Glenn Beck and Steve Forbes are very conservative.
Conservative Voice on November 19, 2008 at 1:04 PM
If Americans want to send money to the Big Three, they know exactly how to go about it. The next time they’re in the market for a new car or truck, buy the American brand. With a bailout, we send money to Big Three, but we don’t get anything in return.
But here’s a suggestion. Instead of sending money to the automakers directly, send it indirectly in the form of rebate checks given to consumers. How much would you need to convince you to purchase a car of lesser quality simply because it’s American? Would you do it for $2000? $5000?
And if the price of the rebate check is too high, what does that tell you about the prospects of bailing out a company that makes products people won’t buy even at a substantial discount?
PackerBronco on November 19, 2008 at 1:05 PM
What loan? It was nothing more than bailing out banks that would have failed. They may still fail. No-one is lending in this environment
lodge on November 19, 2008 at 1:05 PM
I don’t want to think about 2012 yet, not even a little. Mitt is correct, but not exactly credible considering his own $25 billion plan to bail out the auto industry in the primaries.
I agree that dumping more taxpayer dollars into the auto industry is little more than throwing good money after bad- they’ll just be back for more. If building inferior gas guzzlers hasn’t worked, building inferior “green” cars won’t either.
Let them go bankrupt. Hell, we’d be better off just buying the companies and handing over the keys to the Japanese or German auto makers who are profitably building cars here in the US without government handouts.
Hollowpoint on November 19, 2008 at 1:05 PM
When Delta Airlines filed for Chapter 11, somehow they were still able to keep flying. People didn’t stop flying Delta because they filed for bankruptcy.
BohicaTwentyTwo on November 19, 2008 at 1:06 PM
“Why wasn’t Mittt or Rudy our nominee?”
Maybe because they are both liberals?
Al-Ozarka on November 19, 2008 at 1:06 PM
I guess some of you missed that one little World War we had…WWII. GM Made airplanes. Several companies made Jeeps. GM makes most of the HMMWV drivetrain now and many of the suppliers that GM keeps in business make a million different parts used in all kinds of military equipment….
Youngs98 on November 19, 2008 at 1:07 PM
Huck.
BacaDog on November 19, 2008 at 1:07 PM
THIS Mitt Romney?
=======
Mitt Romney, presidential candidate, campaigning in Michigan last January:
Mr. Romney, a former governor of Massachusetts whose father was president of American Motors in the 1950s and ’60s, insisted that the auto industry can be revived and blamed Congress and Mr. McCain for ignoring Michigan’s problems.
“The question is, where is Washington?” Mr. Romney said, speaking to a gaggle of reporters across from a General Motors transmission plant near Ypsilanti, where 200 layoffs were announced this week. “Where does it stop? Is there a point at which someone says ‘enough’? Or are we going to allow the entire domestic automotive manufacturing industry to disappear?”
DJ Tablesauce on November 19, 2008 at 1:07 PM
Here’s a thought:
Who bailed out the steel industry? It lost thousands of jobs.
Who bailed out the textile industry? Lots of jobs shipped overseas, because the American companies couldn’t compete on price.
Who bailed out the furniture industry? Virginia and North Carolina have lost hundreds of furniture jobs.
hawksruleva on November 19, 2008 at 1:08 PM
Bail them out now and when there contract comes due they will go on strike for more money. Let them go chapt. 11
twiggman on November 19, 2008 at 1:08 PM
The plant isn’t gonna disappear. Should WWIII commence, we can start it up again!
lodge on November 19, 2008 at 1:08 PM
You don’t need to take out a loan to buy a plane ticket. Big difference.
Youngs98 on November 19, 2008 at 1:08 PM
Hollowpoint on November 19, 2008 at 1:05 PM
I agree, though in Mitts defense the 25 billion was for research and development, not just a check to management. But for me, there is no difference.
Lets relax federal laws around the auto industry. That will give them more than any bailout.
Conservative Voice on November 19, 2008 at 1:09 PM
I can’t believe so many of you are buying into this guy. Don’t be so gullible!
DJ Tablesauce on November 19, 2008 at 1:09 PM
Illinidiva on November 19, 2008 at 12:25 PM
Are you referring to his 20 billion dollars in energy, fuel efficiency, and technology investments for the whole nation, not just the auto industry, as the bailout? He said it would help Michigan, and it would. It wasn’t a bailout specifically for the one industry.
thecountofincognito on November 19, 2008 at 1:10 PM
DJ Tablesauce on November 19, 2008 at 1:07 PM
You should read the article.
thecountofincognito on November 19, 2008 at 1:11 PM
DJ Tablesauce on November 19, 2008 at 1:09 PM
Whenever someone takes the risk to articulate conservative viewpoints, cheer.
Conservative Voice on November 19, 2008 at 1:11 PM
The oft-cited “people won’t buy cars from bankrupt companies” survey is obsolete. The companies have been exposed as effectively bankrupt already. No one knows what to think about their futures. They’re talking about it in NASCAR circles – what would NASCAR do if there is no Chevy, etc. A bailout only underlines how desperately sick the companies are while suggesting that they’re unwilling or unable to handle their business as efficiently as other companies.
People are a lot more likely to buy cars from re-organized, potentially profitable companies than from ones that are in the news every day begging for handouts that they may or may not get and that may or may not do any good.
CK MacLeod on November 19, 2008 at 1:12 PM
and just when I’m starting to like the guy, HA posters remind me why I see a snakeoil salesman eevrytime I look at him.
YellowDawg on November 19, 2008 at 1:12 PM
As I thought. A highly nuanced position from Mittens, as usual.
lodge on November 19, 2008 at 1:12 PM
Don’t be surprised if Walmart doesn’t pickup the big 3.
Cars on aisle 5.
Firebird on November 19, 2008 at 1:13 PM
I can’t believe I went to college for almost 4 years, took all kinds of mind numbing math classes and tried to learn some computer programming and IT only to now find out I should have dropped out of high school and gone to work for GM putting hub caps on cars and could have been making more money.
With all of these high paid auto workers how the hell did Detroit wind up with the highest level of poverty?
Me thinks those union fat cats were doing more then lobbying for a 40 hour work wek. Suckers
Just A Grunt on November 19, 2008 at 1:13 PM
I am sick of so called bitter conservatives who are so tight in the butt that they can’t see ANY good from someone they didn’t support in the primaries.
Grow up people.
Conservative Voice on November 19, 2008 at 1:14 PM
I’m betting on the ChiComs
lodge on November 19, 2008 at 1:14 PM
Don’t get me wrong, I agree with what he says above, but I’m commenting on all the ‘Yay Romney’ stuff I’m reading above. The guy was saying pretty much the exact opposite thing just back in January when he was running for President.
It’s great that he’s switched positions AGAIN, but the fact is that he lacks character. He’s our John Kerry.
DJ Tablesauce on November 19, 2008 at 1:14 PM
Pretty much.
Count to 10 on November 19, 2008 at 1:15 PM
Yup, Mitt’s the man.
Geronimo on November 19, 2008 at 1:16 PM
Young 98: The carmakers did supply a great service in WWII. But what happened to Willie’s? What happened to Studebaker? America has survived the loss of car manufacturers before.
Besides, even if all GM, Ford, and Chrysler plants close down, there will still be plenty of auto plants open in the US. In time of war, even the Honda and Toyota plants would be available to put on a wartime footing. It’s kinda hard for them to just take the entire plant home to Japan.
Further, EVEN IF the carmakers totally shut their doors (which isn’t likely) out of the ashes of GM and Ford, it’s quite likely that a new, more efficient, and more successful carmaker will be born. Without their giant shadow crowding out new ideas, new ventures will have space to grow.
Lastly, this $25 billion is like a free vial of cocaine. Once the carmakers get a taste, they’re going to want/need more and more. They can’t even say how long the $25b will last, or when conditions would force their hand if they didn’t get the $25b. The dirty secret – they’re standing in the gift line because they saw that other folks got a handout. Takeaway “Congress’s money” as an option, they’d figure out another way to survive.
hawksruleva on November 19, 2008 at 1:16 PM
does anyone know how much money all of the big three excs took home in bonus’ last year?
twiggman on November 19, 2008 at 1:16 PM
DJ Tablesauce on November 19, 2008 at 1:14 PM
He didn’t change his position
go back to what he said in January, and it hasn’t changed. He still holds the position that government should partner with detroit…he just limits it to 25 billion for research and development instead of just giving a bail out.
If you are going to be critical, then at least get your facts straight.
Conservative Voice on November 19, 2008 at 1:16 PM
Or perhaps the way Huckabee will be spinning this, “Mormons hate Detroit.”
highhopes on November 19, 2008 at 1:17 PM
You’re asking too much.
thecountofincognito on November 19, 2008 at 1:18 PM
twiggman on November 19, 2008 at 1:16 PM
Dont care. You know how many employees they have to pay 80 bucks an hour for doing absolutely nothing ( not including money paid for other benefits ) because they can’t fire anyone…due to unions?
Conservative Voice on November 19, 2008 at 1:18 PM
I FRIGGEN’ LOVE IT!!! I can just imagine all the wailing and gnashing of teeth coming from spoiled rotten union workers!! The real world is going to bring those snotty bastards back down to reality.
Oh, the wonderful, wonderful, schadenfreude.
Bwahahahahaaa!!!!
csdeven on November 19, 2008 at 1:18 PM
See he’s good at stuff like this. This is how Republicans need to be on all the issues. Smart, informed, experienced and knows wtf he’s talking about. Even if you disagree with his premise, the fact that he’s reasoned is reassuring.
Dash on November 19, 2008 at 1:19 PM
Whenever Mitt (or another candidate) lands on a good conservative position, we should cheer as loudly as possible. Instead of calling him a flip-flopper, let’s say “you finally came around!”.
Encourage folks when they take your position, and they’re more likely to stick to it ;-)
hawksruleva on November 19, 2008 at 1:19 PM
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