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Mitt Romney Changes Tune When It Comes To Michigan [Save GM]

If you hadn't noticed yet, Tweedle-dee, Tweedle-dumb and Tweedle-how-stupid-are-you-to-take-a-fleet-of-jets and their scary Op-Eds haven't done anything to Save GM or either of the other not-so-Big Three. The Senate is not pleased with their behavior. But here comes Mitt Romney, "favorite son" of Michigan. The guy who took tons of auto-exec money and said this before the Michigan primary:

"I want to bring Michigan back. I am not willing to sit back and say 'too bad for Michigan, too bad for the car industry, too bad for the people who lost their jobs, they are gone forever.' I will not rest when I am president of the United States until Michigan is brought back."

January is a long time ago in Romneyville as Mitt said this in the NY Times earlier this week:

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.

What's the difference?

After losing both the New Hampshire and Iowa primaries, Michigan became an incredibly important state for Romney's presidential quest. He was a big cheerleader for the auto industry and, according to the NY Times He:

campaigned as a populist champion for the auto industry on his way to winning Michigan’s primary last year, excoriating Senator John McCain for declaring on the stump that some of the industry’s lost jobs were not coming back.

Circumstances are different now and the $700 billion treasury bailout enraged small business conservatives. Michigan isn't as important a state for Romney as it once was and, if he wants to stay relevant, talking about the Detroit bailout has proven to be a big way to gain attention.

There's nothing wrong about believing that bankruptcy is the best path for the automakers. Many would disagree, but it is a completely valid point. What's wrong is that when Romney says Detroit shouldn't "ask Washington to give shareholders and bondholders a free pass — they bet on management and they lost," he fails to mention that in Michigan, during the primary, he also bet on Michigan. He said that he opposed new mileage requirements. He said we should give aid to bailout health care and pension costs of the automakers. From another article in January:

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.

[...]

In Warren, McCain said he would be "ashamed" to tell voters that the lost jobs would return to Michigan, but he vowed to take care of displaced workers through a promised job retraining program that would be offered through community colleges.

There's nothing outrageous about what Romney is saying, but we have yet to see him aknowledge why he suddenly changed his mind.

[Photos by Bryan Mitchell/Getty Images, Scott Olson/Getty Images, GEOFF ROBINS/AFP/Getty Images, Bill Pugliano/Getty Images, J.D. Pooley/Getty Images ]



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Workers wages the straw that broke the automakers' backs

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After such a drawn out, difficult process to get an Auto Rescue/Bailout Bill through Congress, there was one issue in particular that led to its defeat at the hands of Senate Republicans. Word has it that hope was in the air around 7PM EST yesterday evening that a deal could be reached among Republicans in the Senate, Congressional Democrats, auto industry representatives and the UAW. Some time later after the industry reps went home, the UAW was left in the room with Senate Republicans negotiating over one final issue that stood in the way of Republican support for the compromise bill. That issue was wage parity with non-union assembly plants run by foreign automakers in the U.S., also known as "transplants".

The UAW was willing to consider lowering its wages across the board to meet those of non-union plants, but wanted to delay any cuts until after its current contracts with the Detroit 3 run out in 2011. Plus, it's not exactly clear what level of pay would be targeted, as foreign run plants pay a wide range of wages to their workers, even among plants owned by the same foreign automaker. Nevertheless, without the UAW conceding to cut wages immediately, Senate Republicans refused to support the bill and it failed late Thursday night during a procedural vote.

The markets are about to open on Wall St., after which we'll have a clearer picture of the repercussions of last night's Senate vote. The only avenue left for immediate federal assistance is for the White House to allocate funds from TARP, which it may be more inclined to do after the bell rings to open the New York Stock Exchange this morning.

[Source: Automotive News, sub. req'd, Photo by Bill Pugliano/Getty]

Workers wages the straw that broke the automakers' backs originally appeared on Autoblog on Fri, 12 Dec 2008 09:30:00 EST. Please see our terms for use of feeds.

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