Romney's Auto Bailout Stand Haunts Him in Michigan

Chrysler, General Motors should never have been rescued, Mitt argued
By Neal Colgrass,  Newser Staff
Posted Feb 20, 2012 6:07 PM CST
Republican presidential candidate, former Massachusetts Gov. Mitt Romney, speaks at Meridian Bioscience in Cincinnati, Ohio, Monday, Feb. 20, 2012.   (AP Photo/Gerald Herbert)

(Newser) – Mitt Romney's opposition to the Detroit bailout plan may come back to haunt him in the Michigan primary, the New York Times reports. Not only did Bain Capital, the equity firm he founded, refuse to pump money into a flailing General Motors—Romney himself wrote an op-ed for the Times arguing that automakers should go bankrupt rather than get bailed out. Feelings are still sore in the nation's auto capitol: "All of us in the auto industry ... were profoundly disappointed and, I would say, angry," says a former GM executive.

Defending his position in the Detroit News, Romney says he wanted GM and Chrysler to file for bankruptcy, which they eventually did. But the Times notes they filed an orderly Chapter 11, not a liquidating Chapter 7, thanks to $80 billion from the federal government. President Obama hopes to take advantage of the issue by having allies hold news conferences in Michigan explaining Romney's position. As for Romney's allies, they're trying to change the subject: “I think too much time has been spent on this issue,” said Gov. Rick Snyder.

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