The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Saturday, January 14, 2012

Romney and our improving auto industry: jobs and auto sales

Mitt Romney is catching hell from his GOP presidential candidate opponents; primarily based on his own oratory.  If you run out on the campaign trail and 'yap;' about how you have created jobs, take a moment and think about information available through basic research.  Romney's history includes success at companies like Staples, but it also includes clear success at a venture capital company: Bain.   Bain is not in the business of selling a product. Operationally, Bain is also not in the business of buying companies and investing in those companies for superior products.  Superior products draws customers, thus providing jobs.  No, Bain is a company that performs for just as it is categorized: venture capital.  Shareholders of such companies earn by not only wrenching earnings from 'cash cows', they buy companies invest just enough to sell to make a profit. 

"cash cow":  

1: a consistently profitable business, property, or product whose profits are used to finance a company's investments in other areas
: one regarded or exploited as a reliable source of money   

Ah, capitalism at its finest!  One major problem; investing just enough to sell for a profit also means reducing operating expenses. What is the easiest way to reduce operations expenses? Close plants, offices and lay-off employees.  Romney was a master performer. 

He was so good at his 'blood-letting, he managed to secure continued payments at the level of $13 million per year well after he separated from the "vulturous" Bain.

Well, the GOP is closing ranks on Romney's opponents and placing his "vulturous", past on the 'quiet' list.   GOP election strategist are masters at such strategy. They rely on the shortsightedness of the electorate and emotionalism inherent in 'slogans, and phraseology.

Despite the current push to 'shush' on Romney's past, empirical evidence exists which exposes the candidate.

Do you have any relatives who work for GM or Chrysler? How about a friend or neighbor who works for those industry giants? No?  Do you know anyone who works for a supplier, auto industry vendor, dealership, or possible state agency related to operation of automobiles.  The bottom-line impact of the previous questions is 1.2 million jobs across the United States. Those 1.2 million jobs could have been lost forever, had Mitt Romney and his GOP won the battle of 'loans' to the auto industry (AKA, bailouts).

Mitt Romney 2008

Let Detroit go bankrupt 
By Mitt Romney
Published: Sunday, October 19, 2008
BOSTON — If General Motors, Ford and Chrysler get the bailout that their chief executives asked for on Tuesday, you can kiss the American automotive industry goodbye. It won't go overnight, but its demise will be virtually guaranteed.
Read more linked above

Of course, we know that both Chrysler and GM paid back the loans with interest. Yes, the paybacks were such that the nation still took a small financial hit, but the conterminous loss of 1.2 millions jobs lost might have pushed the nation into a depression.  (That exemplifies the seriousness of Romney's contempt for our auto industry.) How about an unemployment rate with those job losses factored-in? 

How will Mitt Romney answer when Barack Obama "goes there"  during he Presidential Debates?  The president will have additional salt to sprinkle on those wounds.  The following link reports on an awakening auto industry, albeit many companies are foreign car manufacturers.  GM has reported similar plans to hire and open shifts, thus recalling laid-off employees. So, for those who read the article and comment about a bunch of foreign companies, first think about not having any US auto manufactures. The companies mentioned in the article, could possibly have moved their operations into other countries.  GM, Ford and Chrysler add a dynamic to the global auto industry that far exceeds just providing domestic jobs: those companies ensure competitors have interest in manufacturing in the States.

The LA Times-CARS is reporting, 
"Automakers plan to hire thousands of workers this year."

Barack Obama as president has surely made some mistakes.  His accomplishments and successes far exceed those mistakes.  

I offer this screed as evidence.

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