Skip to content

Chrysler, GM, and Two Little Ads That Finally Exposed Obama’s Lies

November 6, 2012

NOTE: This post was written the day before the presidential election of 2012. Two months after the election, presidential candidate Mitt Romney was proved to be correct:  Fiat-Chrysler planned to build Jeeps in China (see http://www.huffingtonpost.com/2013/01/15/china-jeeps-fiat-chrysler-gac_n_2481642.html ). After the election, Romney also was proved to be correct after the second presidential debate when moderator Candy Crowley came to President Obama’s defense by erroneously correcting Romney who’d said that President Obama had misled Americans about who’d attacked the U.S. consulate in Benghazi, Libya, on September 11, 2012. Crowley in effect shut down Romney’s chance to educate voters about the Obama-Democrat lie that GM was alive and al Qaeda were on the run. I believe, the majority of Americans regret not voting for Romney.  I hope, Americans will get their information from moderate, liberal, and conservative media and original sources in order to determine for themselves what is propaganda and what is the truth. I pray, our media stops this madness of dividing America by presenting any fact and any lie in order to promote their agenda.  More than anyone, I blame the media for the deep divisions in America.

Chrysler, GM, and Two Little Ads That Finally Exposed Obama’s Lies

Two little ads about the managed bankruptcies of GM and Chrysler finally exposed the thousands of times President Obama, his campaign, and the partisan media lied when they said, “Mitt Romney said, “‘Let Detroit go bankrupt'” (see GM and Chrysler timelines,  footnote 1, and https://lesliewilliamsz.com/2012/10/30/obama-didnt-save-auto-industry-and-romney-didnt-let-it-go-bankrupt/ ).

Like an 8.7 earthquake, Romney’s two little ads rocked the Obama camp, fissuring the false narrative of an embattled but good President who always tells us the truth .

But the Obama camp didn’t give up like criminals caught red-handed and knocked on their butts.  Instead, they decried the ads, protested the ads, labeled the ads as lies, lies, lies.

Team Romney whispered, the ads are true, true, true.  (They “whispered” because the partisan media marginalize “the other’s” voice.  But Truth can exist, even in exile, especially when the people most affected know what’s true.)

The auto workers know, Romney’s two little ads speak Truth:  Italy’s Fiat did buy bailed-out Chrysler, and Fiat-Chrysler does plan to build Jeeps in China.

When a reporter recently asked about the ads, Fiat-Chrysler management refused to answer the question (see last question in Fiat-Chrysler’s October 30, 2012, earnings webcast).  Managers know, investors get nervous when managers won’t answer a direct question.

But managers also know, if they lie in earnings webcasts and reports, then investors can sue.  There are lawyers who make their living trolling for just such lies.

Alas, to amp up their protests, the Obama camp was forced to drag in Michael Moore and some beholden car managers (beholden because our government has spent at least $80 billion to save their bacon):  How dare Romney’s two little ads allude to the fact that the made-in-China Jeeps will compete directly or indirectly with our car industry. 

That’s not quite what we Americans expected when we paid about $80 billion or so to bail out two car companies.

We know what it’s like to watch China play economic chess while our government plays economic checkers.

But we also know, Obama is a smart guy.  He and his minions and the partisan media tell us that all of the time.

We held our breath as we watched:  Obama slid a red checker forward:  He dismissed China’s impact on our car industry.

Only arrogance pretends to know the endgame of China.

That’s why Romney’s two little ads could have been Great Big Ads if they had even whispered:  Bailed-out Fiat-Chrysler has partnered with China’s GAC, and bailed-out GM has partnered with SAIC, China’s largest car company.

Such Great Big Ads would have been like a 10.0 earthquake and a tsunami in the Obama camp, which really, really, really doesn’t want us to know about all of that China stuff.

Great Big Ads would have forced the Obama camp to answer a flurry of questions:

  1. Will China’s GAC  buy Fiat-Chrysler?
  2. Will China’s SAIC buy GM?
  3. Will low-paid American auto workers be assembling China-made car kits for cars sold only in the United States?
  4. If so, is that why our car companies have paved the way for low-waged ($14/hour) auto workers http://www.wsws.org/articles/2010/oct2010/lake-o21.shtml ?
  5. If all car parts and all car kits are made in China and then some of them are sold or assembled here, how will that impact Mexico’s car-parts industry and ours?
  6. Where did financially struggling Italian Fiat get the money to buy Chrysler?  Fiat’s CEO said on 60 MINUTES a few weeks ago that Fiat could not have survived even one recall until just recently. So how could Fiat afford to buy Chrysler in the midst of the great Global Recession?
  7. Did China’s GAC  loan or give Fiat the money to buy Chrysler?   http://www.dw.de/fiat-signs-deal-with-chinas-gac-group/a-4460055-1  
  8. If so, why weren’t Americans told that fact before we bailed out Chrysler and before Chicago gave Chrysler $60 million in tax breaks for 1,800 jobs at an auto plant in Belvidere, Illinois?
  9. Has SAIC been helping GM financially?  GM has done pension buyouts and has had several recalls since the 2008-09 bailouts, which might have bankrupted other car companies.  In October, it bought a 43% stake in SAIC-India, hiking its stake to 93%. http://www.livemint.com/Companies/VZMqBsgHkM9DkPbDFe0gNJ/GM-buys-43-stake-of-SAIC-in-India-operations.html
  10. On November 5, 2012, we learned GM has a new $11 billion line of credit from 35 unnamed financial institutions and 14 countries.  Who guarantee the biggest chunk of that $11 billion?  And when will GM repay us the $27 billion we’re owed? http://www.cleveland.com/business/index.ssf/2012/11/gm_gets_new_credit_lines_total.html
  11. Who has received loans from the U.S. Export-Import Bank in 2012? http://cnsnews.com/news/article/us-governments-ex-im-bank-gave-44-its-financing-just-3-companies  What’s the bank’s default rate? How many billions are we on the hook for?
  12. Are taxpayers on the hook for any of the car loans by GM and Fiat-Chrysler in America, China, or anywhere else?

China commonly loans money to foreign companies and governments in order to help China buy competitor companies as well as energy, mineral, and crop assets critical to a country’s ability to sustain itself.  That’s how China has gotten its claws into so many economies without raising any alarms.

We witnessed China cannibalize our manufacturing industry from a distance.

If China can do so much damage to our economy from a distance, just imagine what China can do to our manufacturing, energy, mining, and crop sectors up close and personal.

Some economic reporters such as Ali Velshi argue that every country is now making its cars in its own country, so there’s no need for car exports (CNN, November 2, 2012).

If that’s true, why did we bail out two car companies, only to have one be bought by Fiat and the other perhaps by China?

And why aren’t we manufacturing car parts and car kits to export–rather than becoming China’s assemblyline and consumers for their cars?  That’s where the big money is if no one exports cars anymore.

Assembling car parts and car kits provides jobs in assembly, shipping, car sales, auto repair and restoration, parts stores, etc., but making the car parts and car kits provides those jobs plus jobs in mining and manufacturing related to aluminum, steel, glass, rubber tires, paint, leather, carpeting, etc.

Some folks might say, we can’t do that.  We can’t compete. Our goods cost too much.

Do they? Will they?

Our energy costs are much cheaper than our competitors such as China, Japan, Germany, and Italy.

But just as we’ve not protected our jobs, we haven’t protected our energy assets–at least not since President Obama took office.

Since 2009, much of our energy has come under the control of  China and their partners, the Middle East, Japan, and even Russia–either through direct asset sales or by 10- to 25-year commodity contract.  Such contracts bypass the open market, guarantee a set price, and often masquerade as a loan guarantee or “buying a stake” in a struggling company.

While President Obama let the highest bidder gain control of our energy and even some of our mining assets, other countries have started protecting theirs.

Many emerging countries are doing what is called “resources nationalism,” in which they protect or reacquired their nonrenewables.

Emerging countries have learned the hard way:   A country can’t control its destiny if it doesn’t control its natural resources.

Too many of our leaders and economists think, they’re the smartest people on the globe.  Their arrogance has repeatedly put our economy and sovereignty at risk.  Remember when they told us that outsourcing was good for us, because we’re living in a global economy?  They patted us on the head whenever we asked, how are we supposed to buy the world’s goods if we don’t have good jobs or even a job?

Like Warren Buffett and Boon Pickens, I argue that letting our energy assets be exported and controlled by foreigners means we’ll soon be heavily dependent on foreign energy.  (This is also true for  food and mining assets if we let foreigners buy cropland and long-term commodities contracts disguised as business loans.)

Buffett and Pickens know our country’s history:  They lived through the years when the United States was awash in oil.  They watched as most of our oil left our shores for foreign lands.  They witnessed how we became dependent on the Middle East for oil.  They saw how our dependency on the foreign oil changed not only our course in history, but also the Middle East’s and the world’s (e.g., oil was why the first democratically elected president of Iran was overthrown http://en.wikipedia.org/wiki/Mohammed_Mosaddeq , Iraq War I and II, Afghanistan War).

If we foolishly let China and other countries control our manufacturing, energy, mining, crops, then we will be like the miners of old who worked for the company store.  The Company Store of China.

China wants its yuan to be the world-reserve currency.  It wants the yuan to supplant the U.S. dollar.  If that happens–if the U.S. dollar isn’t needed to buy OPEC oil–we will be awash in a tsunami of dollars.

Bankruptcy means that all of the promises our government has made to our most vulnerable citizens will be broken.  People will starve.

Some of our leaders and economists argue, we can’t go bankrupt, because we have our very own printing press.  Those economists also think inflating our way out of debt is a harmless accounting trick that won’t hurt anyone, because our government feeds and houses the poor.  No one will starve.

They fail to realize, our creditors will want hard assets rather than worthless dollars.  They fail to consider what that means for our ability to control our destiny.

They fail to realize, the difference between a strong America and a country ravaged by insurgency or civil war is our Constitution, strong military, strong economy, national pride, and America’s heart.

Some of our leaders and economists fail to consider what will happen to our middle class–America’s heart–which has worked hard and played by the rules and scrimped and saved and made so many sacrifices to help their families, friends, the less fortunate, the working poor who struggle to escape poverty and attain their dreams, and the people whose countries are ravaged by the bruality of war or teorrism or government oppression.

What is America without her heart, without her national pride, without her strong economy, without her Constitution,  without her strong military to preserve, protect, and defend our freedom?

It’s the America envisioned by Barack Obama.

Today, we vote to restore America.

Note on the day after the election, November 7, 2012:  President Obama won the election.  Few talking heads and media types seem to realize the reason he won is because our dishonest mainstream media marginalized voices and put their agenda before America’s future (e.g., see https://lesliewilliamsz.com/2012/10/17/4/ ; https://lesliewilliamsz.com/2012/10/28/obama-vs-romney-roe-vs-wade-abortion-contraception-equal-pay-immigration-reform/ ).

_____________

Footnote 1:  Most voters don’t realize, “let Detroit go bankrupt” is the title that a dishonest editor put on Romney’s op-ed about how to use managed bankruptcies and loan guarantees to save the auto industry.

Most voters also don’t know that President Obama paid White House women 18% less than men–violating JFK’s Equal Pay Act of 1963 and Obama’s own ledgislation, the Lilly Ledbetter Fair Pay Act of 2009 (see https://lesliewilliamsz.com/2012/11/01/obama-vs-romney-equal-pay-and-immigration-reform/ ).  Most voters don’t know terrorism and anti-American sentiment are worse now than in 2009, that overturning Roe vs. Wade would not make abortion illegal, and that Planned Parenthood charges more for women’s services than low-cost clinics do, and the clinics don’t exclude medical treatment for men and our children (see https://lesliewilliamsz.com/2012/11/01/obama-vs-romney-abortion/ and https://lesliewilliamsz.com/2012/10/17/4/ ).

Footnote 2:  China, India, and other emerging countries, want our consumers.  But they don’t want to share their faster-growing consumer base. Most Americans don’t realize they’ve  formed a trading block called “BRICS” (Brazil, Russia, India, China, South Africa and, soon, South Korea) that is designed to keep us out of their markets.

The BRICS countries have currency-swap agreements–as do about a dozen other trading partners of China’s.  Their currency-swap agreement encourage trade among themselves while cutting their risk of exposure to the U.S. dollar and debt.

By doing that, they can dump our dollars simultaneously and collapse our economy.  Boom.

Of course, that wouldn’t be possible if we didn’t have $16.2 trillion in debt and a President who thinks selling out to China et al. is smart.

____________

Timeline of Chrysler-Fiat-GAC deals:

Fall 2008: GM and Chrysler get bailed out by Bush Administration/Congress.

Jan 2009: GM and Chrysler get $20 billion bailout from the Obama Administration/Congress.

January 20, 2009:  On inauguration day, Chrysler and Fiat announced a partnership in which Italy’s Fiat will control 35% of Chrysler.  http://dealbook.nytimes.com/2009/01/20/fiat-acquires-35-stake-in-chrysler/  Did President Obama know of Fiat’s plan to buy Chrysler?  If he did, shouldn’t he have told us before he decided to give Chrysler more billions?  Some articles say Chrysler has paid us all of the money owed, while others say we’re still owed $1.3 billion.  Does Chrysler still owe us $1.3 billion.

Spring 2009: U.S. government financed the managed bankruptcy of Chrysler, wiping out bondholders, slashing the pensions of white-collar workers (e.g., Delphi), and giving UAW a 55% stake in Chrysler.

May 2010:  Fiat signed a deal with China’s GAC after failing in its attempts to import its cars to China:   http://www.thetruthaboutcars.com/2010/05/the-jeep-returns-to-china/

See June 2009 article on China’s GAC-Fiat agreement that’s tied to Fiat’s getting 35% control of Chrysler:  http://www.dw.de/fiat-signs-deal-with-chinas-gac-group/a-4460055-1

July 2011:  The Obama Administration (U.S. Treasury) sold its 6% stake in Chrysler to Italy’s Fiat, hiking Fiat’s stake in Chrysler to 46%: http://www.businessweek.com/news/2011-06-03/fiat-buys-rest-of-u-s-s-chrysler-stake-right-to-uaw-shares.html  http://www.forbes.com/sites/steveschaefer/2011/07/21/treasury-sells-chrysler-stake-to-fiat-sees-1-3b-loss-on-bailout/

December 2011:  China hikes tariffs on U.S. car imports:  15% on Chrysler’s and 22% on GM’s;.  http://www.guardian.co.uk/business/2011/dec/15/china-taxes-us-car-imports

Note:  China’s tariff hikes as well as its threats to dump our dollar and debt are examples of China’s playing President Obama, who doesn’t understand the art of negotiation.   We’ve seen this naivety in Obama’s wanting Romney to reveal all of his cards before negotiating with Congress.  Romney understands, if he reveals, for example, the loopholes he wants to cut, then Democrats will use those loopholes as leverage (i.e., say that they want to keep them)  in order to negotiate other loopholes or  some other aspect of the tax code.  As a result, fewer loopholes might get cut, more might get added, and our tax code might never be simplified.

ca. January 2012: Fiat-Chrysler, which was and still is struggling in the European car market, requested two loans from the Department of Energy, one for $3.5 billion and another for $3 billion.

February 5, 2012: Chrysler aired the “Half-Time in America” ad, narrated by Clint Eastwood, which many viewers perceived as an ad on the half-time of the Obama presidency, a theme now used by Team Obama: http://www.youtube.com/watch?v=_PE5V4Uzobc

February 16, 2012: After the uproar over the “Half-Time in America ad,” which seemed like quid pro quo for the bailout and  two new loan requests that totaled $6.5 billion, Fiat-Chrysler withdrew its $3.5 billion loan application from the Department of Energy ( http://www.thetruthaboutcars.com/2012/02/chrysler-withdraws-request-for-3-5-billion-in-loans-from-department-of-energy/ ) although Fiat-Chrysler did not withdraw its request for a $3 billion loan application.

February 3, 2012:   Belvidere, Illinois, assembly plant plans to build Dodge Dart and add 1,800 jobs. “The jobs are connected to a package of  more than $60 million in state tax breaks and other incentives given to Chrysler in 2010.” http://www.deseretnews.com/article/700221432/Chrysler-to-add-1800-jobs-at-Belvidere-factory.html?s_cid=rss-5

Chrysler is banking on the success of the Dodge Dart, the first car using Fiat-Chrysler’s combined technology:  “Now the plant’s future rests on the success of the Dodge Dart, arguably the most important car Chrysler has launched since the company emerged from Chapter 11 bankruptcy.” http://www.toledoblade.com/automotive/2012/02/03/Illinois-assembly-plant-building-Dodge-Dart-to-add-1-800-jobs.html

One should ask, will GAC-Fiat’s version of the cheaper, less safe Dodge Dart–the Viaggio–impact the success of the Dodge Dart?  http://chinaautoweb.com/2012/09/gac-fiats-inaugural-model-the-viaggio-compact-hits-market-with-a-starting-price-of-us17185/

May 2012:  Fiat-Chrysler began assembling Dodge Darts at its Belvidere, Illinois, plant.  Fiat-Chrysler said, it’s so busy it won’t have a two-week shutdown during the summer.  Article mentions production of several Fiat-Chrysler brands, including Jeep Grand Cherokee and Dodge Durango SUVs.  .http://www.freep.com/article/20120503/BUSINESS0103/205030510/Four-Chrysler-plants-to-skip-summer-shutdown-to-meet-sales-demand

July 2012:   Fiat increased its stake in Chrysler from 58.5 to 61.8%, with plans to buy the remaining Chrysler shares:  http://www.thecarconnection.com/news/1077485_fiat-ups-stake-in-chrysler-volkswagen-buys-rest-of-porsche

September 2012:  China’s GAC-Fiat’s Viaggio–which is the more less-safe version of Chrysler’s Dodge Dart–rolled off the assembly line.  Viaggio’s high-end model has only two air bags compared to the Dart’s ten airbags. http://chinaautoweb.com/2012/09/gac-fiats-inaugural-model-the-viaggio-compact-hits-market-with-a-starting-price-of-us17185/

GM-SAIC Timeline

Fall 2008: GM and Chrysler get bailed out by Bush Administration/Congress.

Jan 2009: GM and Chrysler get $20 billion bailout from the Obama Administration/Congress.

Spring 2009: GM goes through managed bankruptcy, with UAW getting a 55% stake in GM, white-collar pensions getting slashed (e.g., Delphi), and U.S. taxpayers getting saddled with a hefty $50 billion bill.

October 2010:  A UAW deal paved the way to get rid of GM’s high-wage workforce in favor of low-wage jobs:  http://www.wsws.org/articles/2010/oct2010/lake-o21.shtml

Is GM’s paving the way for a low-paid jobs so that our workers assemble car kits made in China–akin to what China is doing in Egypt, India, and elsewhere?

December 2011:  China hikes tariffs on U.S. car imports:  22% on GM’s, and 15% on Chrysler’s   http://www.guardian.co.uk/business/2011/dec/15/china-taxes-us-car-imports

June 2012:  GM-SAIC began building a $1.1 billion auto factory in Wuhan, China:  http://www.carnewschina.com/2012/06/07/shanghai-gm-builds-new-factory-in-wuhan-china/

July 2012: SAIC-GM opened a 100-person operations center near Detroit.  Its “three main goals” are “to create relationships with North American suppliers,  facilitate the importation and export of parts and components, and design and  engineer vehicle parts and other components.” http://wot.motortrend.com/coming-to-america-chinese-automaker-saic-opens-offices-near-detroit-226101.html/0/

The “SAIC opens office near detroit” article questions whether SAIC will import cars to sell in America.

Americans surely should have been told about that big fact before SAIC opened its 100-person office near Detroit.

Afterall, we are major stakeholders in far more than just GM and the assets our companies and our government so willingly sell to countries who put their citizens’ self-interests miles ahead of ours.

Leave a Comment

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: