Quoth Mitt Romney in the NYT: "Let Detroit Go Bankrupt"

Filed under: Government/Legal, Chrysler, LLC., Ford, GM, Earnings/Financials

Mitt Romney, former Massachusetts governor, former entrant in the marathon to win the White House, and current automotive industry expert (who knew?) had a few things to say in the New York Times today on the potential auto industry bailout. The opening paragraph says it all: "IF General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won't go overnight, but its demise will be virtually guaranteed."

Romney is not rooting for the end of the biz, but he believes that bankruptcy is the only way to save it because it will force a reset, and that will be the only way for the Detroit 3 to rectify entrenched structural problems. These include UAW contracts -- "a new direction for the UAW," executive perks -- "sanity in salary and perks," getting rid of old blood -- "management as is must go," just for starters.

Romney believes that the auto industry is crucial to America's national interest in more ways than one. And he isn't against helping the U.S. automakers, but believes that a shock to the system is the only thing that can rescue it, long term. Have a look at the piece and let us know what you think -- but no need to make a decision yet; give it another few minutes, and we're sure someone else will have another prescription. Thanks for the tip, Mike!

[Source: New York Times, Photo by Mario Tama/Getty]

Quoth Mitt Romney in the NYT: "Let Detroit Go Bankrupt" originally appeared on Autoblog on Wed, 19 Nov 2008 19:21:00 EST. Please see our terms for use of feeds.

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The picture is not that clear especially when one considers the effort of GM in developing the Volt and the Buick crossover. But with the announcement of General Motors that it will be withdrawing from its partnership with Toyota at the NUMMI or New United Motor Manufacturing Incorporated, the move of re-branding the Prius may be a logical move.

The withdrawal was made after a final agreement as to which future product line up should be developed cannot be made between the two parties.

A spokesperson from GM North America informed the press that the joint venture between Toyota and their company has no future units planned for production.

The Prius though is already set for production at the California NUMMI plant since the plans of doing it at Mississippi did not materialize. The production at the NUMMI factory will also allow Prius to meet the increasing demand for hybrid vehicles.

The re-branding of the Toyota Prius is a great offer that might be too good to decline. Some worry though that with all the paper works, approval, and production, the re-branding of the Prius as a GM product may intersect with the timeline of the Volt which is due for release by late 2010. Toyota on the other hand is sure to be very happy with this development…

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In the US and around the globe the segment of small cars is the fastest growing market. The GM designers believe that the new generation of small cars will be ahead of the pack in terms of customer appreciation.

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