Thursday, April 24, 2014

Auto bailout all but forgotten

From page A10 | December 13, 2013 | 4 Comments

The issue: Turnaround of U.S. automakers is true recovery

When President Obama orchestrated the multibillion-dollar bailout of the U.S. auto industry in 2009 — GM and Chrysler were headed into bankruptcy, Ford was struggling — his many critics derided it as either a nefarious socialist plot or an attempt to buy the votes of autoworkers about to lose their jobs.

IN ANY EVENT, the government made out like a capitalist when it began to sell its ownership shares in GM and Chrysler and Obama did indeed win, with the exception of Indiana, the industrial belt. That included Michigan, the home state of Mitt Romney, who despite being the scion of an auto company president, favored letting GM and Chrysler go bankrupt.

USA Today, in its dissection of the 2012 presidential election, said, “In the end, there is no overestimating how large of a role that the auto industry bailout played in President Obama’s re-election.”

And, also in 2012, CNNMoney said of the bailout, “The U.S. auto industry’s recovery is one of the biggest success stories of the last four years.”

The Michigan-based Center for Automotive Research believes the massive infusion of taxpayer funds — as much as $60 million on the two companies alone — saved 1.5 million jobs and stopped a wave of bankruptcies from sweeping through the industry’s suppliers.

THE AMERICAN auto industry was caught in a triple whammy — a global economic downturn; a mix of products that ran heavily to high-fuel-consumption pickups and SUVs just as gas prices began to soar; and crippling legacy costs from previous union contracts that gave foreign makes, even those produced in the United States, a cost advantage of $350 to $500 a vehicle.

Thanks in no small part to that bailout and the economic recovery, November auto sales were 9 percent above a year ago with sales running at an annual pace of 16.4 million vehicles for the year, the strongest since February, 2007.

It is perhaps worth noting that major news outlets reporting the robust auto industry figures — The New York Times, The Wall Street Journal, Financial Times, the Associated Press — made no mention of Obama or, for that matter, socialism.


Discussion | 4 comments

The Davis Enterprise does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • December 13, 2013 - 3:30 pm

    Amazing how your editorial leaves out the fact that the auto bailout cost ended up being $15 billion lost American taxpayer's money. The unions reaped the biggest rewards at the bond holders were royally screwed. Yes Romney said the auto companies should go through bankruptcy, but that didn't mean they'd go out of business. Instead of the taxpayer bailing out the auto industry the courts would've guided them back into solvency without the taxpayer losing $15 billion. United, Delta, Continantal and many other airlines went through bankruptcy and they're thriving today. Let's be a little more fair with the editorials and quit sucking up to Obama.

    Reply | Report abusive comment
  • Greg JohnsonDecember 13, 2013 - 5:47 pm

    Exactly my thoughts. Interesting how the government "made out like a capitalist", isn't it. I don't think capitalists invest to lose 15 billion dollars. The only capital gained was the political capital Obama gained by deceiving naive voters that he "saved Detroit".

    Reply | Report abusive comment
  • ontDecember 15, 2013 - 7:36 pm

    Never a day off for the Obama haters. If he was a pediatric surgeon who excised some deadly cancer from a patient and saved his life, Fox News and the Republican party, followed by their blind followers throughout the land, would be screaming in synchronized outrage about how Obama scarred the kid for life with the incision. Meanwhile, the “liberal media” would dutifully hype the “controversy.”

    Reply | Report abusive comment
  • ontDecember 15, 2013 - 7:44 pm

    It's an easy job being a republican politician when all you care about is tearing down your opponent and stirring up the hatred of your voters. You can hardly lose using a constant barrage of dishonest, negative ranting because the press is unlikely to hold you accountable. The GOP’s playbook is always stay on the attack, always be negative, and try to cultivate resentment at every turn. It helps make voters more cynical about government and depress voter turnout too. Feel an impulse to acknowledge a positive development in the country? Better stifle it then if the president could get some credit. When the president takes bold action and succeeds in saving the US auto industry when private financing was non-existent, do you at least grudgingly admit things worked out pretty well after all? Heck no. You call it the end of freedom, motivated by Obama’s desire to run all private industry and to spend spend spend and don’t forget to drone on about the greedy unions. The beauty of the damned if you do or don’t GOP approach is if their advice was followed and the government sat on the sidelines while the US auto industry disappeared, they would then just scream about the demise of an anchor of the US economy under the democrats and further rail about how the appeaser-in-chief recklessly endangered our national security by allowing the loss of these manufacturers on his watch, thereby handing a huge win to China, Russia, and “the terrorists.”

    Reply | Report abusive comment


4-H members get ready for Spring Show

By Anne Ternus-Bellamy | From Page: A1 | Gallery

Will city move forward on public power review?

By Dave Ryan | From Page: A1

Obama to Russia: More sanctions are ‘teed up’

By The Associated Press | From Page: A2, 1 Comment

2 pursuits, 2 arrests keep Woodland officers busy

By Lauren Keene | From Page: A2

Youth sports in focus on radio program

By Enterprise staff | From Page: A4

Rummage sale will benefit preschool

By Enterprise staff | From Page: A4

Concert benefits South Korea exchange

By Enterprise staff | From Page: A4

Conference puts focus on Arab studies

By Enterprise staff | From Page: A4

Davis honors ‘green’ citizens

By Enterprise staff | From Page: A5

Water rate assistance bill advances

By Enterprise staff | From Page: A5

Program explores STEM careers for girls

By Enterprise staff | From Page: A5, 3 Comments

Embroiderers plan a hands-on project

By Enterprise staff | From Page: A5

Central Park Gardens to host Volunteer Orientation Day

By Enterprise staff | From Page: A5 | Gallery

Volkssporting Club plans North Davis walks

By Enterprise staff | From Page: A5

Hotel/conference center info meeting set

By Enterprise staff | From Page: A5

MOMS Club plans open house

By Enterprise staff | From Page: A7

Cycle de Mayo benefits Center for Families

By Anne Ternus-Bellamy | From Page: A8

Author to read ‘The Cat Who Chose to Dream’

By Anne Ternus-Bellamy | From Page: A12



Things are turning sour

By Special to The Enterprise | From Page: B5

The high cost of employment

By Letters to the Editor | From Page: A6, 1 Comment

High-five to Union Bank

By Letters to the Editor | From Page: A6

Broken sprinklers waste water

By Letters to the Editor | From Page: A6

Three more administrators?

By Letters to the Editor | From Page: A6

Neustadt has experience for the job

By Letters to the Editor | From Page: A6

Here’s a plan to save big on employee costs

By Special to The Enterprise | From Page: A6, 3 Comments

Davis is fair, thoughtful

By Letters to the Editor | From Page: A6

Ortiz is the right choice for Yolo

By Letters to the Editor | From Page: A6

Tom Meyer cartoon

By Debbie Davis | From Page: A6



DHS tracksters sweep another DVC meet

By Enterprise staff | From Page: B1 | Gallery

Another DVC blowout for DHS girls soccer

By Evan Ream | From Page: B1, 2 Comments | Gallery

Young reinvents his game to help Aggies improve on the diamond

By Bruce Gallaudet | From Page: B1 | Gallery

DHS boys shuffle the deck to beat Cards

By Thomas Oide | From Page: B1 | Gallery

DHS/Franklin II is a close loss for Devil softballers

By Enterprise staff | From Page: B1

Baseball roundup: Giants slam Rockies in the 11th

By The Associated Press | From Page: B2

UCD roundup: Aggies lose a softball game at Pacific

By Enterprise staff | From Page: B3

Jahn jumps to Sacramento Republic FC

By Evan Ream | From Page: B8





Congressional art competition open to high school students

By Enterprise staff | From Page: A11

Emerson, Da Vinci to present ‘Once Upon a Mattress’

By Enterprise staff | From Page: A11

Winters Plein Air Festival begins Friday

By Enterprise staff | From Page: A11

Bach Soloists wrap up season on April 28

By Jeff Hudson | From Page: A11







Comics: Thursday, April 24, 2014

By Creator | From Page: B6