From last night’s debate:
My plan to get the industry on its feet when it was in real trouble was not to start writing checks. It was President Bush that wrote the first checks. I disagree with that. I said they need — these companies need to go through a managed bankruptcy. And in that process, they can get government help and government guarantees, but they need to go through bankruptcy to get rid of excess cost and the debt burden that they’d — they’d built up.
OBAMA: Governor Romney, that’s not what you said…
OBAMA: Governor Romney, you did not…
ROMNEY: You can take a look at the op-ed…
OBAMA: You did not say that you would provide government help.
ROMNEY: I said that we would provide guarantees, and — and that was what was able to allow these companies to go through bankruptcy, to come out of bankruptcy. Under no circumstances would I do anything other than to help this industry get on its feet. And the idea that has been suggested that I would liquidate the industry, of course not. Of course not.
OBAMA: Let’s check the record.
So then let’s check it, shall we?
From “Let Detroit Go Bankrupt”, Mitt Romney’s Op-Ed published by the New York Times on 11/18/2008:
The American auto industry is vital to our national interest as an employer and as a hub for manufacturing. A managed bankruptcy may be the only path to the fundamental restructuring the industry needs. It would permit the companies to shed excess labor, pension and real estate costs. The federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk.