Updates at the end of the post
The Twitterverse is ablaze with harsh criticism for Romney over the ad below because they can’t take the truth. They’ve been running vicious ads against Romney as an outsourcer, but Obama appears to be one himself.
President Obama’s campaign is focusing on his GM bailout and the killing of Osama, which is all he has to run on. outside of attacking Romney.
Biden keeps repeating his dopey slogan, Osama is dead, GM is alive. In fact, the bankruptcy was managed poorly and GM is on life support.
Romney’s ad about the Obama GM bailout is accurate:
For the time being, there is no plan to close the Ohio plant but Mike Manley, Chrysler CEO in Asia, who is also in charge of the Jeep brand, said last week that he is considering moving the entire Jeep portfolio to China. That doesn’t bode well for the future. [Bloomberg News]
This week, Manley took it back or clarified, that’s not clear, to say that he is simply adding a new factory in China. He could add a factory in the U.S. and add jobs here but he isn’t. You’d think the unions would find this troublesome but they don’t.
We sold our U.S. shares in Chrysler to Fiat at a loss of $1.3 billion. Fiat was to continue making cars in the U.S. but Obama did not have it written into the contract. Fiat can take off for China whenever they want and they undoubtedly will.
Romney’s ad should have included China Motors, also known as Government Motors, in the ad.
Dan Akerson, GM CEO, said that 7 out of 10 GM automobiles are made outside the United States. They are moving their advanced R & D to China as well.
President Obama is planning an ad to counteract the Romney ad. He’ll have to twist the truth to make it work. He can give no assurance that Jeep won’t move all their cars to China eventually. He did’t make that part of the sale. He’s a rank amateur.
Update: 10:30:12 [Businessweek] Fiat CEO Marchionne is considering building other Chrysler models, including Jeep, in Italy for export to North America. The Italian government is evaluating tax rebates on export goods to help Fiat.
Obama’s counter ad should prove interesting since all the signs point to Chrysler leaving the U.S. at some point, despite Chrysler’s latest statement that the Ohio, Illinois, and Michigan plants will remain.
Chrysler Fiat CEO’s appear to want to make their cars somewhere else, somewhere cheaper. They have said it several times now though that does not mean they will close plants here.
Mike Manley (CEO for Asia and the Jeep brand) said Fiat was considering building the Jeep in China. He amended this statement to add that the Ohio plant will stay. As it turns out, Manley is building a new plant in China. When faced with building a new plant here or abroad, Fiat decided it will be abroad, in China. It’s cheaper.
The fact is that instead of putting Fiat through a bank-managed bankruptcy, the Obama administration practically gave the company away to a foreign country that wanted back into the U.S. market. Obama’s bankruptcy does not include any written agreement that would require them to keep making cars here.
In the long term, Marchionne would like to merge Fiat and Chrysler once Fiat is on its feet and add a third car company making it one huge global entity.
We need to face the fact that Chrysler isn’t a U.S. car company any longer. It is an Italian car company. Only time will tell how the Fiat-Chrysler merger will work. It has been a difficult road, with complaints from both sides.
In the end, say goodbye to a great American car company.
To counter the severe slump in European sales, Marchionne is considering building Chrysler models in Italy, including Jeeps, for export to North America. The Italian government is evaluating tax rebates on export goods to help Fiat. Marchionne may announce details of his plan as soon as Oct. 30, the people said.
WSJ [July 2012]:
Fiat SpA F.MI -4.07% may produce more vehicles in Italy for export to the U.S., helping the auto maker ease its excess domestic production while aiding Fiat dealers struggling with too few models and the brand’s rocky return to the U.S. auto market.
Chief Executive Sergio Marchionne said he may use a factory south of Rome to build an undisclosed car for export to the U.S. Existing Fiat plants are to build Maserati sports cars and a Jeep sport-utility vehicle for U.S. export.
Fiat has five Italian auto plants, and “a lot of these plants are going to be producing for the U.S.,” he said.
Update: 10:31:12: Fiat owns 58.8% of Chrysler and hopes to buy 3% more from the minority owners, the United Auto Workers health care trust fund. Originally, Fiat hoped to buy the entire minority stake but his new ambitious plan focusing on luxury cars will leave him short the capital to do that. The Fund could push for a public stock by January if Fiat proceeds with their plan to not buy up the rest of the stock.
Sergio Marchionne is under pressure from the unions in Italy to not close factories. There are now 19 new models to be produced in Italy for Europe and for export, including to the U.S. The new models are the new small Jeep SUV, nine Alfa Romeos and six Maseratis. [So, they are only building a news small Jeep for now?]
Their stock tumbled 5% over doubts that this is a wise industrial plan. This is a desperate plan to turn the company around after it fell $19 billion short of its sales target.
The UAW might be looking for another bailout in the future. For now the plants is this country remain open but the expansion in Italy and China are a threat to cars being made here.
Relying on Obama’s promises are as good as relying on the one he made at the Janesville, WI GM plant. After promising to keep the GM plant in Janesville open while on a visit there prior to his election, he did nothing to stop it from closing in April ’09. He did nothing to re-open it after it closed.
The fact is that more GM cars are now being made in China (70%) and now advanced R & D is also moving to China.
Chrysler might face the same fate sooner rather than later.