How You Contributed $11.9 Billion To The Presidential Election

Bertel Schmitt
by Bertel Schmitt

“Midwestern auto-industry towns that were hit hard in the recession are becoming an important backdrop for President Barack Obama and other Democrats hoping to use reinvigorated factories to paint a picture of the improving economy ahead of the 2012 elections.”

That’s how the Wall Street Journal starts off an article on how “Democrats hitch a ride on the auto-industry rebound.” As we had noted on Memorial Day, our beloved bail-out is becoming the battle cry of the 2012 presidential campaign. Says the Journal:

“The White House has even taken some credit for recent success at resurgent Ford, the only Detroit auto maker to avoid bankruptcy and a bailout, arguing that a collapse of GM and Chrysler would have crippled Ford as well.”

Meanwhile in the opposition camp …

Republican presidential contender Tim Pawlenty on Wednesday blasted the auto bailout as “sweetheart” deal that favored union workers at the expense of shareholders and creditors. “It was another example of crony capitalism,” the former Minnesota governor said. “If you’re a big business or bailout business and you’ve got buddies in big government, big unions, you get the special deal. But if you run the hardware store, run the butcher shop or run the bicycle-repair shop, then you’re out of luck.”

According to the Wall Street Journal,

“The U.S. Treasury has said it is unlikely to fully recover $1.9 billion still outstanding on the Chrysler rescue. The U.S. would lose around $10 billion if it were to sell its remaining stake in GM today.”

Write it off as campaign donations.

Before you write “this is getting old,” or “move on, nothing to see,” consider this: All presidential hopefuls think the bailout is very pertinent, and we’ll hear of it until November next year. Better get ready. Or earplugs.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

More by Bertel Schmitt

Comments
Join the conversation
13 of 43 comments
  • Jellodyne Jellodyne on May 31, 2011

    I feel half dressed, showing up without a tinfoil hat.

    • See 6 previous
    • MikeAR MikeAR on May 31, 2011

      @Jellodyne Ok so many things to call you on nad so little time. First, did I make this between Republican and Democrat? No I didn't so you either can't comprehend or you deliberately chose to mischarcterize what I said. You are one of two things and neither one is good. Calling me incapable of thought was a great way to advance the discussion but hey, that's how you guys do things. You might try thinking for a change, your life would change completely. All those things you bring out in your last paragraph, just where were they introduced into this discussion? Hint, you brought them up, yoou nutty conspiracy theorist you. What about your sides theories; the CIA controls the world, 9/11 was an inside job, and a lot of other things. So I guess that your theories are all fact by your standards. One last thing, who wants speech codes in schools, who has improved upon the Patriot Act to give it more teeth, which administration wants to expand the TSA's authority over all mass transport, which President now claims he has the authority to order assasinations of anyone designated as an enemy of the state even US citizens in this country? I could go on but I don't have time and it's just too easy rebutting anything you can come up with in your vivid imagination.

  • VanillaDude VanillaDude on Jun 01, 2011
    I know some of the people in this thread would say that GM has more of a right to exist than the UAW, but why is that exactly? Because there would be no workers if there was not any work. This is not a zero sum game. Productivity expands the market. When there is no work, there is no expansion. When the cost of workers exceed the value of the product, the product dies and all productivity transfers towards another producer. The fact that you have to ask this question exposes you as someone who simply doesn't understand common truths, or one that has been led to believe that common truths have been replaced somehow. I was once similar to you, but discovered that my education degrees only led me to ignore reality. Open your eyes.
    • See 3 previous
    • MikeAR MikeAR on Jun 01, 2011

      @Jellodyne Brad, please explain more throughly what you mean by your post. I'd like to read just what your thoughts were when you wrote the post.

  • Lou_BC Question of the day: Anyone actually care to own an old TVR?
  • Bd2 First, this was totally predictable. 2nd, Genesis already does have hybrids in the form of a 48V mild hybrid, but more performance oriented (supercharged and turbocharged), so not really helping with regard to fuel consumption. 3rd, Hyundai's hybrid systems don't really help as there currently isn't one that would be suitable power-wise and the upcoming 2.5T hybrid system would have to be heavily reworked to accommodate a RWD/longitudinal layout. 4th, it seems that Genesis is opting to go the EREV route with the GV70 the first get the new powertrain.
  • Bd2 Jaguar's problem was chasing the Germans into the mid size and then entry-level/compact segments for volume, and cheapening their interiors while at it.
  • 3-On-The-Tree Aja8888 I expected that issue with my F150 starting at 52,000mi. luckily I had an extended warranty and it saved me almost $8,000. No more Fords for me, only Toyota.
  • Lou_BC I saw a news article on this got a different read on it. Ford wants to increase production of HD trucks AND develop hybrid and EV variants of the SuperDuty. They aren't scaling back EV production. Just building more HD's and EV variants of HD's .
Next