Imagine if in December George W. Bush and his administration had:
- Decided to issue the initial bailout billions to General Motors but not Chrysler, thereby forcing Chrysler into bankruptcy.
- Had his advisers get on the phone with elected officials in towns and states where Chrysler has plants and told them that the bankruptcy was about to happen.
- Said that the Chrysler bankruptcy "will not disrupt the lives of the people who work at Chrysler or the communities that depend" on them.
Now imagine if, 24-36 hours later, Bush's advisers disclosed that many Chrysler plants would close.
Does anyone reading this think that such an obvious betrayal would have gone unreported by the major TV networks or newspapers of record?
Well, on Wednesday and Thursday, April 29 and 30, Barack Obama and his administration did exactly what I described above. Then, on May 1, Obama's car guys and Chrysler announced the closings of plants in Ohio, Wisconsin, Missouri, and Michigan. Yet this shocking deception, acknowledged as such by well-known names in both major parties, has only been news in the metro areas affected.
In a May 10 column in the Cleveland Plain Dealer, reporter Stephen Koff did a fine job of laying out the details of the story. It's a definite read-the-whole-painful-thing piece, but here are some of Koff's key paragraphs (bolds are mine; the Plain Dealer has a separate detailed timeline here):
Late in the morning on Thursday, April 30, three officials serving under President Barack Obama got on a telephone conference call with members of Congress and Capitol Hill staffers. ....
These are smart people, and they listen carefully. They all took notes on what was said by Larry Summers, Ed Montgomery and Ron Bloom, three of the advisers Obama had tapped to rescue the American auto industry. And what these and other Congress members heard in this private telephone conference was consistent with the message that President Obama publicly made a few minutes later in the White House grand foyer: Chrysler, the storied American automaker, was entering a short, government-assisted Chapter 11 bankruptcy and would merge with Fiat, the Italian car maker.
But this "will not disrupt the lives of the people who work at Chrysler or the communities that depend on it," Obama said.
That seemed straightforward enough, and it mirrored the statements the Congress members had just heard from the top task force officials -- that there would be no plant closings and no layoffs, with only short-term plant idling to restructure and move excess inventory off the lots. It also followed a telephone briefing with reporters little more than an hour earlier, in which a senior administration official was asked about the potential loss of Chrysler "head counts." The administration official, talking with reporters on the condition that he and others not be named, responded that "there are no plans to have any immediate plant closings or major white- or blue-collar head-count reductions."
Maybe someone should have asked what the White House meant by "no plans" and "disrupt."
Congress members say they were blind-sided by the news the next day, May 1, that Chrysler in fact intended to permanently shutter five plants: one each in Ohio, Wisconsin and Missouri, and two in Michigan.
The news was embarrassing as well as shocking, since many members, like LaTourette, had issued statements applauding, for instance, the report that no jobs would be cut at the 1,250-worker Twinsburg Stamping Plant. Candice Miller, a Republican congresswoman representing Sterling Heights, Mich., home of a 1,400-worker Chrysler plant, even went on the House floor soon after Obama's announcement, saying it meant, "most importantly, no plant closures or new job losses."
Wrong. Sterling Heights, like Twinsburg, would be sucker-punched the next day with news of a plant closing.
Were Congress members duped? If so, by whom and why?
The short answers appear to be yes, by both Chrysler and the White House.
Koff's very plausible theory is that the administration made its risible claims early Thursday that jobs would be saved to get all-day TV and online media plaudits and no blowback from localities they knew darn well would be affected. Then it sent Chrysler into bankruptcy on Thursday afternoon to ensure that the press didn't have enough time to adequately scrutinize the voluminous filing ahead of their Friday print runs. Koff says that only the Detroit Free Press was able to beat their print deadline. By the time anyone caught on to the ruse, the slow-news weekend arrived, while the attention of the national press went on hiatus.
As Koff says, "If it was, in fact, a media strategy, it worked."
A further appalling aspect in all of this is the unwillingness of virtually every Democrat involved except Dennis Kucinich to go on the record to criticize the administration's self-evident deception. Read the rest of the story, and you'll see pathetic cop-outs or stone silence from the likes of Ohio Senator Sherrod Brown, Ohio Congressperson Betty Sutton, and Michigan Governor Jennifer Granholm.
After the fact, the Obama administration is trying to claim that the closure of the affected plants was already envisioned in Chrysler's February viability plan. That doesn't even pass the stench test, let alone the smell test. A different Plain Dealer reporter and Ohio Republican Congressman LaTourette have separately shown that "Chrysler's Feb. 17 restructuring proposal never mentioned plans to close additional plants, whether unidentified or not."
A May 6 Plain Dealer story notes that "Chrysler acknowledges it failed to inform Twinsburg and other communities of imminent plant closures." I'm not aware of any such acknowledgment by the government, let alone anything resembling an apology from President Barack ("[it] will not disrupt the lives of the people who work at Chrysler or the communities that depend on it") Obama.
I wonder how the employees affected feel, knowing that they're being left jobless while their union's health plan controls half of the new company, and that they were further treated like mushrooms (kept in the dark and fed horse manure) until the attention of the nation's press disappeared?
If the national establishment media are offended at being used, and duped, I sure haven't seen it. I don't expect that I ever will.
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters




















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Comments Policy
tired of liberal
May 16, 2009 - 00:01 ET by stunnedtired of liberal lies
Boy, I tend to be a bit of a news junkie and NONE of this had made a blip on my radar, this is all news to me!! The MSM is even more in the tank for Obama than I thought. Not reporting any of this makes the NYT burying the Pelosi story on page A-20 today seem like no big deal.
Clinton lied under oath of
May 16, 2009 - 02:09 ET by mostlymoderateClinton lied under oath of the court. Edward's cheated on his wife and lied about it. Obama has been caught in several lies (same goes for his tax-evading appointees) and now Pelosi. Those are just the popular democrats that have been caught cheating or lying. Do a Google search of Democrats that have been caught lying. The results will floor you.
The GM plant closings are
June 11, 2009 - 03:32 ET by Estefania CThe GM plant closings are the result of lower fixed costs per vehicle sold, and lower and more efficient capital investment. For sure there will be more and more GM plant closings. As if there haven't been enough GM plant closings, more are to follow as GM has filed for bankruptcy, and online payday loans alone aren't going to be able to get them out of trouble. Brian Deese has been appointed in order to oversee the bankruptcy proceedings, hand picked by President Obama. Ordinarily, you hire an attorney that has been admitted to the bar instead of a lapsed law student for bankruptcy proceedings, but Deese has worked with the Obama team before, and is well versed in what the Chief Executive requires. Still, if all goes well, then GM will get debt consolidation and the GM plant closings will be temporary.
OMG!Where are the voices
May 16, 2009 - 00:13 ET by bigtimerOMG!
Where are the voices from all the conservatives calling for an investigation and bringing attention to this...Pelosi or no Pelosi brouhaha?!
...and they called Bush King George.
We are all being swallowed as whole as they can get before they are chocked off...unfortunately, permanent damage I fear will be done for years to come.
Doubling down on stupid is not a particularly good idea. ~Andrew Breitbart
Conservatives???? They
May 16, 2009 - 06:47 ET by motherbeltConservatives????
They are all terrified that the media will investigate them to find something one of them did!
Best to stay silent.....
They might say "Wow, that sucks!" But at least they'll say "Wow!" -Duff Goldman, the Ace of Cakes
The Obama "administration" is becoming more farcical...
May 16, 2009 - 01:13 ET by R D Helm...as each hour passes.
Just where the hell are the republicans? What of our so-called business leaders?
Hell, where is anyone with an I.Q. above room temperature?
Obama is very rapidly running this country right into the ground.
Have we become so utterly STOOPID as a nation to not be able to recognize this?
When, just when, will the STOOPID American sheeple WAKE THE HELL UP?
-Dave
America has gone totally insane
There is no...or little....free press anymore.
May 16, 2009 - 01:53 ET by Army BratThe press no longer serves the people...hasn't for some time.
They willingly and happily serve their new masters and seek only to hide the truth from the people they once served. Journalism and ethics are now opposites. The people have been betrayed as never before.
There is only the Obama Ministry of Information...and they lie.
Happy Trails....
Glenn Beck had a guy on his
May 16, 2009 - 07:07 ET by motherbeltGlenn Beck had a guy on his radio show yesterday, a Chrysler dealer, who was told to close up shop. He was actually doing a decent business, but was left no choice...The Obama decided his was one of the dealerships to be cut. He employs about 125 people.
Is President Obama going to find them all new jobs?
They might say "Wow, that sucks!" But at least they'll say "Wow!" -Duff Goldman, the Ace of Cakes
No joke? So, a productive
May 16, 2009 - 07:47 ET by ThatDudeNo joke? So, a productive business was forced to shut down while Chrysler needs to move stock. That makes absolutely no sense. If you have an outlet managing to sell and merchandise needing to be sold, then you keep open the outlet. Restructuring will be alot easier on dealerships so long as they're provided products to sell. This is scary how much our government is interfering in private industry.
Party affiliations? Chances for cronies to make big money?
May 16, 2009 - 06:55 ET by ekslibObama's Chicago cronies benefitted from his ability to distribute government money.
http://www.youtube.c...
It's easy to find out, online, who contributed to a particular political party. Are party affiliations public?
I wonder if there is a positive correlation between one's party affiliation and campaign contributions and one's access to Obama's handouts.
We Expect
May 16, 2009 - 06:55 ET by rightwingidiotThe new prez is a lying sack of crap. We should expect no less.
Everything he says is fact amongst the media (at least most of the media). He comes out and says something that immediately becomes the truth because nobody will stand up and call him a lying sack of crap.
Which he is.
Truth surrounding the bankruptcy.
May 16, 2009 - 09:08 ET by sevenThe day after filing bankruptcy, suppliers stopped shipping parts and sub assemblies because they were told no money for them Formally all, All means all factories were formally closed the Monday after the filing. They havn't built cars this month. The next lie is that they will be up and running 60 days after filing. Nope. That is a talking point or a goal and not realistic. All the termination suits of terminated dealers will need resolution before a re orginazation plan can be filed and accepted. In a normal legal bankruptcy plan, workers must work to get court approval for pay.
Watch GM and see the adjustments made folowing this fiasco. The dealer termination suits for GM will be covered as liabilities and under order of the Judge.
Fiat may walk if they are smart. (actualy run because they will live a life under Rahm making all their decisions for them and giving the UAW preferential treatment.)
If anyone thinks fiat deal is a done deal, they had too much Italian wine. Fiat can walk without penalty because they are protected by dishonest disclosure case history and they are NOT an american Based company.
I don't see how fiat can
May 16, 2009 - 09:18 ET by kangarooI don't see how fiat can afford to come here, it is closing heaps of plants in europe and uk, not reported here but in the uk papers, they are going broke as well, and I remember obamma saying he wouldnt give crysler money unless they joined with fiat, but gave GM everything they wanted, sounded like blackmail at the time
Re Fiat
May 16, 2009 - 11:06 ET by slickwillie2001Agree, the Fiat role in this is a mystery to me. The Bamster says they are going to share some small-car technology with Chrysler (?). What can they possibly show Chrysler? Why would Fiat want to bother with this loon of a President? Do they see their share in Chrysler as an investment that they can flip quickly? Do they only want access to some Chrysler patents?
Fiat is from all appearanes ....
May 16, 2009 - 09:43 ET by Tom Blumer.... doing all of their deals worldwide with huge amounts of government money.
I agree that the idea that Chrysler will be reopening plants on June 29 or 30 (a Monday or Tuesday, which is 60 days) seems absurd. After a plant is shut down that long, it will take maintenance and skilled trades folks up to a week to get to the point where anything can be produced. Then they have to figure out who they've lost as employees (if I worked for Chrysler and decided to quit, I would feel absolutely no obligation to tell them, given the government's and company's shoddy treatment), figure out how to properly staff, etc.
I think not reopening at all is a legitimate possibility, esp if sales at the supposedly surviving dealers stay go further in the dumper -- which they may, because I would think that dealers going out of business are going to unload their stuff at any cost.
i work for one of those chrysler suppliers.
May 16, 2009 - 11:13 ET by puredmashiethe name of the plant is new process gear, and we're located in syracuse, ny. we supply 4wd transfer cases to dodge and jeep, as well as a lot of gm trucks and suv's. we had a great run when suv's were popular, but the gas price spike of last year had us running at about 1/3 of our capacity. that was before gm announced they would be shutting down for a good part of this summer. we've since adjusted, and now i have my fridays free.
the chrysler bankruptcy was a total shock to us, and the biggest impact is that they won't need any transfer cases from us for at least 60 days. we don't pretend that that date is attainable, either. the bankruptcy and work stoppage will most likely last until new 2010 model year vehicles are ready.
i'm a gearhead's gearhead - a mechanical engineer responsible for designing the gears in all the products we make. i've been at this gig for more than 20 years, and i was ready to work another 20, but they tell us we're going to eventually close as early as 2011 with all of our work moving to saltillo, mexico.
new process gear has been in business for more than 120 years, and i'm still in denial that we will shut our doors forever. ironically, we were the only division in all of magna (that's our parent company) to beat our financial plan in the 1st quarter. i guess you could say do more with less has become do more with nothing.
there are a lot of people who are going to have a tough summer this year. for me, i've started to look for employment elsewhere.
swing hard in case you hit it.
the next shoe to drop
May 16, 2009 - 11:01 ET by larry on LIall the dealerships that were terminated will be forced to sell their stock [read cars and parts] to the government for pennies on the dollar, or yen.
say it ain't so..
May 16, 2009 - 19:40 ET by seesalrun"Does anyone reading this think that such an obvious betrayal would have
gone unreported by the major TV networks or newspapers of record?"
Really? You mean, no one reported this? why not? Why wouldn't the MSM tell us? Is this a conspiracy? <sarc>
Obama & Chrysler
May 17, 2009 - 11:07 ET by jessieHjessieH A nationwide strike is sounding better & better. If anyone has job anymore.
→ Best laid plans
May 17, 2009 - 11:29 ET by Cool ArrowEverything was runnin' along smooth-like as long as the extra cost could be attached to Mexican labor.
Chevy Silverado, for example. Big seller in the USA, Hecho en Mexico.
Only volume sales from across our borders could keep Chevy and Chrysler going. We just suddenly realized a new vehicle every 3 years was a luxury rather than a necessity.
"I was fighting a war in Iraq!" - Nancy Lugosi