Get Updates
GOP2012: Republican debate, January 19th, 2012
The Reality
Back
Fact Check

President Obama saved over 1.4 million American jobs by extending loans to the auto industry

December 15, 2011 at 10:25 P.M.

Tonight, Mitt Romney said he’d like to ask President Obama,“How did you do running General Motors?” We’ve got the answer - by making the tough and politically unpopular decision to extend emergency rescue loans to the American auto industry, President Obama saved 1.4 million jobs at GM, Chrysler, and throughout the domestic automotive supply chain, preventing an economic catastrophe for communities across the country. Michigan, where more than one in every five workers’ jobs are supported by the auto industry, would have been at the center of that collapse. In exchange for government loans, GM and Chrysler were required to cut labor costs and overhaul their business models, guaranteeing their accountability to taxpayers. Today, GM and Chrysler have repaid the loans they received from the Obama administration, become profitable and rehired thousands of workers. Yet Romney opposed the very loans the President extended to the auto industry – loans that industry experts say saved the auto companies from liquidation - and instead proposed “letting Detroit go bankrupt” in an op-ed in the New York Times. 
 

THE RESCUE LOANS FOR THE AUTO INDUSTRY PREVENTED ECONOMIC DISASTER ACROSS THE NATION AND IN MICHIGAN

 

  • The Center For Automotive Research: The Auto Industry Rescue Saved More Than 1.4 Million Jobs, Including 1.14 Million Jobs In 2009 And 314,400 Jobs In 2010.  [CAR Report, 11/7/10 <http://www.cargroup.org/pdfs/bankruptcy.pdf> ]
  • 2008: Moody’s Economist Mark Zandi Said That Without Government Help “The Automakers Will Quickly End Up In Bankruptcy And Be Effectively Liquidated, Resulting In  Hundreds Of Thousands Of Layoffs.” [Testimony To U.S. Senate Banking Committee, 12/4/2008]
  • CNN: “Doing Nothing” For GM Chrysler “Could Have Cost More Than Twice As Much” As The Auto Rescue, Which Prevented More Than $28 Billion In Lost Tax Revenues And Assistance To The Unemployed. [CNN Money, 7/22/11 <http://money.cnn.com/2011/07/21/autos/chrysler_bailout_costs_gains/index.htm> ]
     
  • UofC Bankruptcy Expert Said GM Would “Die” Without Government Intervention. [McClatchy Newspapers, 3/30/09]
  • The Center For Automotive Research Reported That If GM & Chrysler Had Undergone An Unstructured, Disruptive Bankruptcy, Michigan Would Have Lost Over 337,000 Jobs Reliant On The Auto Industry In 2009 And 2010. [CAR Automaker Bankruptcies Report, 5/26/09 <http://www.cargroup.org/pdfs/impact.pdf> ]
     
  • The Center For Automotive Research Reported That The Auto Industry Supports Over 1.1 Million Jobs In Michigan, A Full 21.8% Of The State’s Workforce. [CAR Industry Contribution Report, 4/21/10 <http://www.cargroup.org/pdfs/association_paper.pdf> ]
     


THE AUTO RESCUE HAS MADE THE AMERICAN AUTO INDUSTRY STRONGER AND MORE COMPETITIVE

 

  • The Government Accountability Office Found That The Auto Rescue Allowed GM And Chrysler To Reduce Their Labor Costs And Increase Their Production Capacity. [GAO Report On Treasury’s Exit From Chrysler & GM, 5/10/11 <http://www.gao.gov/new.items/d11471.pdf> ]
     
  • The Government Accountability Office Said That The Auto Rescue “Allowed GM And Chrysler To Restructure Their Balance Sheets [And] Tackle Key Challenges To Achieving Viability.” [GAO Report, 5/10/11 <http://www.gao.gov/new.items/d11471.pdf> ]
     
  • The Center For Automotive Research Said “Loans And Other Financial Assistance Provided To General Motors And Chrysler…Averted Certain Economic Catastrophe Had The Companies Been Allowed To Fail.” [Center For Automotive Research, 12/17/2010 <http://www.cargroup.org/pdfs/bankruptcy.pdf> ]
     

ALL OBAMA ADMINISTRATION LOANS TO GM & CHRYSLER HAVE BEEN REPAID

 

  • Chrysler Received $4 Billion From The Bush Administration And $8.5 Billion From The Obama Administration. [Government Accountability Office Report, 11/2/09 <http://www.gao.gov/new.items/d10151.pdf> ]
     
  • The GAO Found That Treasury Had “Taken Steps To Protect The Taxpayer’s Interest In Divesting From GM.” [GAO Report On Treasury’s Exit From Chrysler & GM, 5/10/11 <http://www.gao.gov/new.items/d11471.pdf> ]
The Debate
The Republican Primary

Option 1:

Watch on CNN starting at 8 p.m. ET

Option 2:

Click here to watch FoxNews' livestream
(you may need to disable your pop-up blocker)

Paid for by the Democratic National Committee -- 430 South Capitol Street SE, Washington, DC, 20003.
This communication is not authorized by any candidate or candidate's committee.