Democrats would bring something new about the Detroit’s Auto industry when they will be meeting up next week for their national convention in North Carolina.
The rescue of Chrysler and General Motors started with the seed money from President George W. Bush. Bush did give something but the actual fund came through President Obama’s administration, this will be featured heavily at the convention, according to David Axelrod, top campaign strategist.
He also added that this is something they really want to talk about. He said that he was working with the White House with Obama when he decided to roll out plans to support Chrysler and GM with $80 billion. He also added that the automakers survived the peeling liabilities through the bankruptcy process back in 2009.
He didn’t pulled out much of the details but he said that there will be remarks from the people from top to bottom, who were involved in the auto rescue. Since the bankruptcy both the companies have returned to profit and have enhanced their market shares. At the time, it was said that if GM and Chrysler went down more than a million jobs will be affected.
GOP Presidential Nominee Mitt Romney was hit throughout the campaign for writing editorial in New York Times in Nov 2008 titled as “Let Detroit Go Bankrupt”. He argued for a structured bankruptcy but was against using the tax payers’ money for propping up companies.
The rescue has been an important factor in several states including Michigan and even in electorally important state like Ohio. Even though Auto rescue could be a potent weapon in some of the states, it may not fire every where.
There have been a lot of complaints about GM actually meaning Government Motors, after the treasury took a stake in the company. However, it stayed out of its operations and the bailout was also linked with several banks and other financial institutions which were not quite popular in some parts of the country.
Craig Ruff, a political consultant said that however, the rescue seems to help Obama in Michigan and Ohio but it is quite unpopular in New Hampshire and in any other swing states. It’s a two edge sword he added.
But there is no doubt that it helped in industrial Midwest.