Automobile Industry Bailout Saved Major Vehicle Manufacturers

Automobile IndustryWith Election Day quickly approaching, American citizens are looking for a leader who will support a competitive global economy and create jobs at home. With the final Presidential debate completed and the end of the campaign approaching,

Mitt Romney desperately wants to walk back his statement to “let Detroit go bankrupt” and minimize President Obama’s successful auto industry rescue. It is important to get the facts straight and not continue with the misrepresentations.

The truth is that the President saved the automobile industry when his government committed to giving financial aid to Chrysler and General Motors. The commitment paid off after every cent was paid back and the industry received a resurgence.

Since the government assisted the automotive industry restructuring in 2009,there has been almost 250,000 new jobs created according to the Center for Automotive Research. Those jobs are not for automakers only they re also attributed to dealerships, manufacturers and other related companies that would not had survived had the auto industry not been saved. Last year, all three automakers – Ford, GM and Chrysler – showed profits for the first time since 2007.

These facts can’t be denied, and they demonstrate the foresight and courage that Obama showed in rescuing the automobile industry while facing numerous critics, which included Governor Romney, who boldly told the New York Times that the government should “let Detroit go bankrupt,” and the automobile makers should rely on private financing rather than the government. What Romney forgot about is that private financing did not exist in frozen credit markets in late 2008 and early 2009.

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