Marketplace Logo Donate

Daily business news and economic stories from Marketplace

Romney ad takes aim at Obama over Chrysler

Subscribe to our Newsletters

The auto bailout just won’t go away — from the campaign trail at least. Republican presidential nominee Mitt Romney’s team is out with a commercial in Ohio saying he would do a better job handling the American auto industry than President Obama.

What’s unusual is that the ad calls out a specific company: Chrysler. The key line says, “Obama took GM and Chrysler into bankruptcy and sold Chrysler to the Italians who are going to build Jeeps in China.”

Well, yes, Chrysler is majority-owned by Fiat. And yes it’s hoping to resume Jeep production in China, but not at the expense of U.S. workers, as the ad implies. Just a few years after bailout and bankruptcy, Chrysler is adding production in the U.S. as well, and last quarter, Chrysler’s profit rose 80 percent.

Paul Ingrassia, deputy editor-in-chief at Reuters, says the Romney ad is simplistic: “Chrysler is a global company and they should build cars where it makes the most sense and they can make profits,” he says.

Last year, Chrysler paid back its government loans, and a health care trust for autoworkers still owns a big chunk of the company. So, Ingrassia says profits made anywhere in the world “will go to fund health benefits for retired UAW members.”

A Chrysler spokesman says he was “surprised” when he saw the Romney ad.

 

 

What's Next

Latest Episodes From Our Shows

Listen
7:35 AM PDT
9:01
Listen
2:31 AM PDT
6:53
Listen
7:50 AM PDT
1:50
Listen
Aug 9, 2022
35:16
Listen
Aug 9, 2022
26:44
Listen
Jul 7, 2022
30:13
Listen
Aug 9, 2022
24:46
Exit mobile version