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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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