No, Romney is not outsourcing jobs but Obama Motors is [Reader Post]


Glenn Kessler at the Washington Post criticizes this Obama ad

“Running for governor, Mitt Romney campaigned as a job creator. But as a corporate raider, he shipped jobs to China and Mexico. As governor, he did the same thing: Outsourcing state jobs to India.”

— Voiceover of new Barack Obama campaign ad

And Kessler observes:

Regarding the outsourcing claims, we have frowned on these before. The Obama campaign rests its case on three examples of Bain-controlled companies sending jobs overseas. But only one of the examples — involving Holson Burns Group — took place when Romney was actively managing Bain Capital.

Regarding the other claims, concerning Canadian electronics maker SMTC Manufacturing and customer service firm Modus Media, the Obama campaign tries to take advantage of a gray area in which Romney had stepped down from Bain — to manage the Salt Lake City Olympics — but had not sold his shares in the firm. We had previously given the Obama campaign Three Pinocchios for such tactics.

The Modus Media case is also not an example of shipping jobs overseas. The company closed one plant in California and transferred the jobs to North Carolina, Washington and Utah. At the same time, it opened an unrelated plant in Mexico. The Obama campaign once trumpeted the fact that we had dinged a conservative Super PAC for making the same leap in logic. …

The Conclusion?

The Pinocchio Test

The Obama campaign fails to make its case. On just about every level, this ad is misleading, unfair and untrue, from the use of “corporate raider” to its examples of alleged outsourcing. Simply repeating the same debunked claims won’t make them any more correct.

Four Pinocchios

Meanwhile, over at Obama Motors outsourcing is booming:

Glad you supported GM getting U.S. taxpayer dollars? Want to see GM survive, prattling on how America needs an auto industry?

Instead we get this, GM plans to shift overseas production:

General Motors Corp. will shift more production of vehicles bound for the U.S. market to China, Mexico, South Korea and Japan, but will keep total imports at roughly one-third of all sales here.

In a confidential 12-page presentation to members of Congress, obtained by The Detroit News on Friday, GM said it will boost U.S. sales of vehicles built in those four countries by 98 percent — or about 365,000 vehicles — while shrinking production in Canada, Australia and European countries by about 130,000 vehicles.

GM also disclosed it will start importing vehicles made in China in 2011, reaching 51,546 vehicles in 2014. Imports from South Korea to the United States will jump from 36,967 vehicles in 2010 to 157,126 in 2014.

The automaker said it is canceling expansion projects in Russia, India and Mexico.

GM’s plan to import more vehicles from low-wage countries raises questions about whether it should beef up its foreign operations as it is relying on federal money to stay afloat. It also puts the automaker at odds with the United Auto Workers, which is trying to protect U.S. jobs amid a dramatic restructuring of the domestic auto industry.

GM has faced strong protests from the union that its turnaround plan unfairly targets U.S. workers and plants for cuts. GM plans to trim 21,000 hourly workers and close 13 of its 47 U.S. plants by the end of 2010 as part of a tougher recovery plan sought by President Obama’s auto task force. It will close three more U.S. plants by 2014.

UAW legislative director Alan Reuther wrote a letter to Congress:

Unfortunately, the latest restructuring plan put forward by the company calls for the closing of 16 manufacturing facilities in this country, including four assembly plants. This will result in the direct loss of 21,000 jobs.

The ripple effect at suppliers, dealers, and other businesses will cost tens of thousands of additional jobs, devastating numerous communities across the United States.

Incredibly, between 2010-2014 GM’s restructuring plan also calls for a 98% increase in the number of vehicles it will be importing into the United States from Mexico, Korea, Japan and China, with the number of imports from these countries increasing from 371,547 to 736,743. As a result, the share of GM’s sales in the U.S. market that will be imported from these countries will increase from 15.5% to 23.5%. The overall number of vehicles GM will be importing in 2014 represents the production of four assembly plants, the same number that GM plans to close in the United States.

Makes you proud of Obama, doesn’t it? And people want four more years of this crap?

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Waiting for the lefties to debate this issue.

Kevin D. Williamson at PJMedia touches on this also.
He notes:
In his 2002 paper on outsourcing, Prof. Gene Grossman of Princeton cites a World Trade Organization study about “American” cars:

Thirty percent of the car’s value goes to Korea for assembly, 17.5 percent to Japan for components and advanced technology, 7.5 percent to Germany for design, 4 percent to Taiwan and Singapore for minor parts, 2.5 percent to he United Kingdom for advertising and marketing services, and 1.5 percent to Ireland and Barbados for data processing. This means that only 37 percent of the production value . . . is generated in the United States.

But Kevin also points out the folly of even saying you want poor, foreign brown people to stay poorer.
He adds:

The Obama campaign, as you probably know, has been running ads denouncing Mitt Romney’s role at Bain Capital, in which Romney made various business deals that had the effect of making a whole lot of money for Bain’s customers while also allowing a lot of dirty foreigners to eat, and God knows the world would be better off if a billion-some Chinese were hungry and desperate, that being an obvious recipe for global stability.
What’s interesting about this controversy to me is the naked xenophobia of the Left on display alongside the amusing ignorance. Liberals love a good talk about the value of learning from other cultures and other peoples, so long as those foreigners don’t mind staying poor. If they want to sell goods and services, they are the enemy. Asians are allowed to be airy gurus and quaint villagers, but the day one of them wants to set up a factory, Democrats have a fit.

Just as MSNBC cuts up Romney’s words to make him look silly, so, too Obama tried to paint Romney and ended up with bold colors all over himself:

You want collective, coordinated global cooperation to solve the world’s most pressing problems? That doesn’t look like a working-group meeting at the United Nations; it looks like what Bain does.

You want a display of backward, ignorant chauvinism?
Put Obama in front of a union hall.

There’s a famous and probably apocryphal story about Milton Friedman being taken on a tour of a giant Chinese infrastructure project of some kind, in which the workers were using old-fashioned shovels and picks and wheelbarrows. Curious, Friedman asked his guide why they weren’t using bulldozers and other heavy machinery. The answer was: “We care about creating jobs for our people.” To which Friedman responded: “Then why not use spoons?” I wonder if Barack Obama could answer Milton Friedman’s question.

Obama would give us spoons.
Certainly NOT knives or even forks!

Obama’s hypocrisy knows no bounds. These are a couple bullet points from a doc that used to live on the uaw’s website: Chrysler_GM_Restructuring.pdf.

 GM is comprehensively transforming its business, globally
o Productivity and flexibility gains enabling more facility consolidations
o Shared global vehicle architectures creating substantial cost savings

Then there was this confirmation: General Motors to Invest $1 Billion in Brazil Operations

SAO PAULO — General Motors plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.

According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the government and will be used to “complete the renovation of the line of products up to 2012.”


Interesting: there’s a whole debate I just stumbled upon were the argument was that our economic system facilitates shifting production overseas while keeping our market open while stamping the product as Made in America.

The US gives its multinationals a free ride–even assisting them in dispersing production and capital to low-wage economies while keeping open the US market for their imports. Our own companies game this system endlessly–producing cheaply abroad, then selling the “US brands” back into the home market.

had a 10 yr old chevy. truck. Yes, I drive a truck…had 156,000 miles on it. Body was in good condition and wanted to trade. Went to the chevy. dealer. No real deal..when asked why I am paying for this GM bailout with not even an upgrade on a stereo told me I was expecting too much. So I drove down the street to the Chrysler dealer…suprise $1000 more on trade in, $1000 on rebate and some slick extras. The financing on my new truck was almost 1% less that to hate the commercial in wich “chevy. runs deep”…deep into the American middle class’s pocket. Own a dodge it better than my silverado..for a lot of “deep” reasons. Ever wonder why there were so many private jets parked at Reagan airport during the inauguration??? got screwed again. You have a muslim terrorist in the wipe house.

Obama’s Green bankruptcy of the day….Abound Solar.
Big Abound investors were top Obama contributors and bundlers.
$475,599 to federal Democrat candidates and causes over the 2008 to 2012 election cycles.
$11,900 to Obama’s presidential campaigns, and $87,500 in bundled contributions to his inaugural committee.

They also spent $70,000 last year to “lobby the House, Senate, and Department of Energy solely about the Loan Guarantee program,” by the NLPC’s reckoning. But remember, Barack Obama vowed that lobbyists would have no power in his Administration!

Abound Solar’s technology made a solar cell out of a piece of glass by applying a thin film of chemical to it.
Another $400 million U.S. loan guarantee LOST to Obama supporters.
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