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Romney Accused of Personally Profiting as 1000s of Delphi Retirees Lost Pensions

GM, Chrysler tell GOP candidate he’s wrong about China jobs.

by on Oct.31, 2012

GOP candidate Romney is now taking fire back from Chrysler and General Motors.

This story has been updated to include a late response by a Romney campaign official.

GOP presidential candidate Mitt Romney is facing allegations he personally profited from the auto bailout he has repeatedly criticized while his hedge fund allies left thousands of Delphi retirees out in the cold, leaving the federal government to cover the cost of their retirement benefits.

The former Massachusetts governor has also championed the cause of Delphi salaried retirees whose pensions were terminated during its bankruptcy, insisting the deal that helped the giant automotive supplier emerge from Chapter 11 was rigged to favor union employees.

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But a new story by The Nation outlined Romney’s investment in the hedge fund, Elliott Management, which was heavily involved in restructuring Delphi Automotive, the bankrupt supplier critical to General Motors. A significant part of the Romney family fortune is managed by Elliott Management, which is operated by Paul Singer, a billionaire who is also one of the largest donors to Romney’s 2012 presidential campaign.

Separately, both General Motors and Chrysler have fired back at the GOP candidate declaring he has been “inaccurate” in claims that the two makers – both rescued by 2009 government bailouts – have used public funds to transfer jobs from the U.S. to China. GM declared the latest Romney ads “politics at its cynical worst.”

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Auto Bailout Cost Now Upped to $25 Billion

GM’s stock plunge adds to likely loss.

by on Aug.14, 2012

GM's performance in the stock market will determine how much of the bailout is repaid.

American taxpayers could wind up losing as much as $25 billion on the 2008 – 2009 automotive bailout, according to a new report, a figure that has increased by 15% since an earlier forecast, in large part representing the significant downturn in General Motors’ stock price.

Beginning with the outgoing Bush Administration in 2008 and continuing once Pres. Barack Obama took office the following year, the U.S. Treasury invested $85 billion to help the domestic industry survive the deep recession – primarily to fund the post-bankruptcy turnarounds at GM and Chrysler.

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But, in a report sent to Congress, the White House raised to $25.1 billion the amount it said it cannot now expect to recover – primarily by selling off the remaining 26% stake it still holds in GM.  The previous quarterly estimate was $21.7 billion. On the other hand, the latest figure is about 45% less than the $44 billion the Obama Administration had once predicted.

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Romney: I Saved Auto Industry by Opposing Bailout

GOP presidential candidate wants some credit for Detroit turnaround.

by on May.08, 2012

GOP presidential contender Mitt Romney has tried to benefit from opposition to the auto bailout - but now wants credit for its success.

Despite his strong opposition to the federally funded bailouts of General Motors and Chrysler, presumptive Republican presidential nominee Mitt Romney insists he also deserves some of the credit for saving the domestic auto industry.

During a Rust Belt campaign swing, the Michigan native told interviewers he should get “a lot of credit” because he pushed the idea of a managed bankruptcy, the route the Obama Administration used to held shed the crushing debt that drove GM and Chrysler into seeking Chapter 11 protection.

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“I pushed the idea of a managed bankruptcy, and finally when that was done, and help was given, the companies got back on their feet,” Romney said in an interview with a Cleveland TV station during a visit to an auto parts manufacturer. “So, I’ll take a lot of credit for the fact that this industry has come back.”

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Public Still Opposes Auto Bailout

New poll shows Republicans overwhelmingly negative.

by on Feb.23, 2012

GOP presidential contender Mitt Romney hopes to benefit from the continued opposition to the 2008-09 automotive bailout.

While the U.S. auto industry may be “back,” as President Barack Obama recently declared during his State-of-the-Union address, that hasn’t changed the fact that a majority of Americans remain opposed to the 2008 – 2009 bailout of Detroit.

A new Gallup poll finds 51% of those surveyed still disapprove of the $85 billion rescue effort, with only 44% saying they approve.  And the figure is even more lopsided when party affiliation is considered.  The poll, conducted for the public radio program Marketplace, found 73% of Republicans opposed – though 63% of Democrats were supportive of the bailout.

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Though the results are still in negative territory, overall, that’s still a significant improvement from 2009, when various polls showed that the vast majority of Americans, regardless of political persuasion, were unhappy with the use of taxpayer money to save General Motors and Chrysler.

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Stand on Auto Bailout Bites Romney in Home State

The answer, says former governor, was to follow “the process of law.”

by on Jun.09, 2011

Candidate Romney during a less controversial visit to Michigan - when he won the state's '08 GOP primary.

In 2008, presidential candidate Mitt Romney got a strong boost from his home state of Michigan, winning his only primary victory in a state once governed by his father, George Romney, who was also the one-time head of American Motors.

Things may be a little different this time as the younger Romney, a former Massachusetts governor, once again throws his hat in the ring.

Making a series of early campaign stops in the heartland of the domestic auto industry, the candidate is being dogged by protestors who recall that despite his expressed support for the slumping auto industry, in 2008, Romney went on to argue against a federal rescue of bankrupt General Motors and Chrysler, insisting he believed in “the process of law,” rather than bailouts.

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An op-ed he authored in the New York Times, prior to the election, was titled “Let Detroit Go Bankrupt.”

More than 100 auto workers gathered outside a restaurant in the Motor City suburb of Livonia, on Thursday, some carrying signs with the name, “Mitt” circled, with a line through it.

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