Mitt Romney has faced tough criticism since the release of his recent op-ed piece in the Detroit News where he openly opposes the auto industry bailout issued by President Obama.
With the Michigan primary on Feb. 28th, this could hurt his campaign since the swing state has close ties with the auto industry, and have seen a profiting auto industry since the bailout.
Romney uses his hometown roots in Michigan and the popularity of his dad, George Romney, as the former Michigan governor and president of American Motors.
Romney claims in a recent opinion column in the Detroit News that he grew up in the auto industry and was sadden when it started to fall, but Obama’s auto industry bailout was not the right decision for Detroit and was “crony capitalism.”
Instead of the bailout, Romney suggested managed bankruptcy. Romney said that with a managed bankruptcy, Chrysler and General Motors could restructure rapidly without spending years in a courtroom.
In July 2009, GM entered a managed bankruptcy and exited a month later, Romney said.
With the bailout, Romney said that Obama’s union allies and his major campaign contributors was rewarded with the bailout while thousands of non-union salaried employees saw a decrease in their pensions and lost life and health insurance.
Throughout the column, Romney ties himself with Detroit and with a “Detroiter” in the White House the dream of the Motor City can once live again.
Chrysler reported a $183 million dollar profit for last year, which was its first full year profit since 2005.
Obama has tweeted that the auto industry is back with 170,000 new jobs since 2009.
Chrysler is not the only auto-maker seeing profits, Ford has seen its largest earnings in 13 years.
The auto industry is closely tied, if Chrysler or GM would have fallen, the entire auto industry would have nearly collapsed. Not only would the Big Three auto-makers have declined, the auto suppliers would have gone out of business.
Romney won the 2008 Republican presidential primary in Michigan, but this time, he is not running as the conservative alternative, Rick Santorum is.
Santorum has had a rise in the polls. Michigan has 30 delegates at stake.
This will be a test for Romney who hopes his Michigan roots will help him with a win. Santorum hopes his contrasting views to Obama will provide a win.