FACT CHECK: Romney Talks Up The Autos, But Would Have “Let Detroit Go Bankrupt”

FACT CHECK: Romney Talks Up The Autos, But Would Have “Let Detroit Go Bankrupt”

Mitt Romney reminisced about the greatness of the American auto industry, but if he had his way we would have “let Detroit go bankrupt.” The President’s auto rescue saved over a million jobs and the big three auto companies are all profitable for the first time in years.

ROMNEY WANTED TO “LET DETROIT GO BANKRUPT”

ROMNEY OP-ED HEADLINE: “Let Detroit Go Bankrupt” [Romney Op-Ed, New York Times, 11/19/08]

Romney Said Of The Auto Bailout: “That’s Exactly What I Said. The Headline You Read Which Said ‘Let Detroit Go Bankrupt’ Points Out That Those Companies Needed To Go Through Bankruptcy.” On the CBS Early Show Mitt Romney said, “‘Yeah, that's exactly what I said. The headline you read which said 'Let Detroit Go Bankrupt' points out that those companies needed to go through bankruptcy to shed those costs,’ Romney said. ‘And the federal government put in, I think, $17 billion into those companies before they finally recognized, 'Yeah, they need to go bankrupt, go through that process, so that they're able to get rid of excess costs.'" [CBS News, 6/3/11]

THE AUTO RESCUE SAVED OVER A MILLION JOBS, HUNDREDS OF THOUSANDS OF JOBS HAVE BEEN CREATED SINCE, AND THE BIG THREE ARE ALL PROFITABLE FOR THE FIRST TIME IN YEARS

President Obama: “Don’t Bet Against The American Worker.” In a speech to Chrysler plant workers in Kokomo, Indiana, President Obama said, “We’re coming back.  We’re on the move.  All three American companies are profitable, and they are growing.  Some of you read last week, G.M.’s stock offering exceeded expectations as investors expressed their confidence in a future that seemed so dim just 18 months ago.  And as a result, the Treasury was able to sell half of its G.M. stock. So here’s the lesson:  Don't bet against America. Don't bet against the American auto industry.  Don't bet against American ingenuity.  Don't bet against the American worker.” [Remarks by the President to Chrysler Plant Workers in Kokomo, Indiana, 11/23/10]

Center For Automotive Research: The Auto Industry Rescue Saved Over 1.1 Million Jobs In 2009, And Over 310,000 Jobs In 2010. “The May results estimated that the outcomes of the orderly bankruptcy proceedings would save 1.28 million jobs in 2009, while the current review estimates slightly lower job savings of 1.14 million jobs. For 2010, original estimates (of orderly bankruptcies vs. unsuccessful proceedings) were that 267,300 jobs would be saved, while the current review estimates that 314,400 jobs were preserved.” [Center for Automotive Research Report, 11/7/10]

Since Chrysler And GM Retooled In June 2009, The American Auto Industry Has Added A Quarter Of A Million Jobs.  According to Bureau of Labor Statistics Current Employment Statistics survey data, motor vehicle and parts manufacturing and motor vehicle and parts retail trade sectors employed 2,252,100 Americans in June 2009. In July 2012, these sectors employed 2,501,700 Americans – an increase of 249,600 jobs. [Bureau Of Labor Statistics Current Employment Statistics Survey Database, Accessed 8/3/12]

Ø  This Represents The Strongest 37 Month Period Of Job Growth Since President Clinton Was In Office. Since Chrysler and GM retooled in June of 2009, the auto industry has added 249,600 jobs. The last 37 month period with industry job growth this large was between May 1994 and June 1997, when the auto industry added 260,000 jobs. [Bureau Of Labor Statistics Current Employment Statistics Survey Database, Accessed 8/3/12]

2011 Marked The First Time In Seven Years That All The Big Three Automakers Were Profitable. “General Motors reported a record annual profit Thursday, just two years after the nation's largest automaker emerged from bankruptcy with the help of a federal bailout. With rivals Ford Motor (F, Fortune 500) and Chrysler Group having already reported profits for last year, 2011 marked the first time since 2004 that all three major U.S. automakers were profitable at the same time.” [CNN Money, 2/16/12]