Bailout all but forgotten as sales surge
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, except Indiana, the industrial belt — including Michigan, the home state of Mitt Romney, who despite being the scion of an auto company president, favored letting GM and Chrysler go bankrupt.
Remember Indiana State Treasurer Richard Mourdock of Evansville who fought the bailout, taking the case all the way to the U.S. Supreme Court?
Mourdock talked principle, but his opponents said if successful, his move would cripple the economy. In the end, Mourdock lost this battle, and his bid for the U.S. Senate.
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 mileage pickups and SUVs just as fuel prices began to soar; and crippling legacy costs from previous union contracts that gave foreign makes, even those produced in the U.S., a cost advantage of $350 to $500 a vehicle.