Mitt Romney, son of former Michigan governor and former automotive executive George Romney, has written an op-ed in the New York Times opposing a rescue package for the auto industry and calling for them to be allowed to go bankrupt. He argues that the rescue would hasten the demise of the industry by allowing them to put off dramatic and necessary changes:
IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.
Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check.
What a difference a few months make. During the Republican primaries, Romney was proposing all kinds of government aid for the auto industry, as the New York Times reported on January 13:
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?”…
Mr. Romney said he opposed the new mileage standard, describing it as an anvil tossed to Detroit by a government that did not understand the auto industry or care about its workers. “As president, I will not rest as Detroit gets to see layoff after layoff after layoff,” he said.
Mr. Romney proposed increased government spending for research on advanced fuels and vehicles, aid to automakers to deal with the costs of health care and pensions for retirees, and tax cuts for most taxpayers to help them buy new cars.
As the Messenger noted in January, most of the east side of the state, home to the auto industry, voted for Romney in the Republican primary.