Mitt Romney: Auto bailout would be a disaster

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Mitt Romney opposes an auto industry bailoutFormer Massachusetts Governor Mitt Romney has warned against bailing out Detroit automakers, recommending that the government let them go bankrupt instead.

In a New York Times editorial, Romney said he believes that a check from Washington would not solve the sector’s problems.

Instead, he proposes that a "managed bankruptcy" could help "propel newly competitive and viable automakers, rather than seal their fate."

Carmakers have been asking for $25 billion in funds which they say is necessary for their survival. The issue has proved divisive on Capitol Hill, with some lawmakers suggesting the money should be used for different purposes.

For example, Romney says that more money should be directed toward new technologies to keep the industry competitive. He also calls for an end to executive perks and a restructuring of labor and benefit agreements that would put Detroit more closely in line with foreign automakers.

Taxpayer watchdog Consumers Against Government Waste has also spoken out against a rescue package, criticizing industry leaders and unions for their "sense of entitlement."

"It is time to apply the brakes to the bailout bonanza," the group added.
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