Obama Did Not Save The Auto Industry, He Saved The UAW

President-Elect Donald Trump sure stirred up the pudding when he saved 1100 jobs and got Carrier to change their mind and keep a plant in Indianapolis open. The next day, White House Spokesman Josh Earnest, unable to explain how a guy who hasn’t even taken office yet, can get things done that Obama could not do. Earnest said that if Trump could do that 804 more times, he would equal what Obama has accomplished.



The left jumps to the auto industry, which Obama allegedly saved. Let’s revisit that time and review what actually happened.

Two of the American-based automakers were in a heap of trouble. General Motors was failing because of repeated poor decisions and crap cars. Chrysler was failing because Chrysler always fails. On the other hand, Ford saw the trouble coming and stacked up cash from selling overseas companies such as Jaguar. The Blue Oval would not need taxpayer help.

The Democrats are always beholding to the same groups of people. Identity politics. Obama needed to make sure HIS stakeholders were protected and to hell with everyone else. The first thing the President did was make up his own bankruptcy law, bypassing congress and breaking the law. The bondholders and shareholders, who collect first in a bankruptcy, were told to pound sand. They had invested their money in GM and lost everything. Obama instead put the United Autoworkers first in line.

Chrysler was fortunate to find a buyer in Fiat. GM was taken over by its employees. This was supposedly “saving the auto industry.” It wasn’t, and here’s why…

Heaven forbid GM and Chrysler would have gone down the drain. Now a legal bankruptcy does not mean a company goes out of business, but let’s say that is what happened here. Who lost? GM, Chrysler, their creditors, their bondholders, their stockholders and the UAW. The auto industry is not on this list, therefore it cannot be saved.

The auto industry would remain because people and businesses would still be buying cars and trucks. They just wouldn’t be Dodge’s, Chevy’s and Cadillac’s. They would be Honda’s, Toyota’s and BMW’s.


The problem for Democrats is that the foreign-based automakers have nearly all of their plants in the South. And they are overwhelmingly non-union. Oops! The UAW would be squeezed out, and if you are a Democrat, this is a huge problem. The union sugar-daddies give them a lot of money come election time. In 23 states, unions can still force workers to pay dues.

Because they would be selling more cars, the foreign-based manufacturers would build new factories and expand current plants, either in the South or in other right-to-work states. That new factory space will require workers, thus the auto industry chugs along at the same level. Obama COULD NOT let GM’s problems go down this way, so he made up his own laws.

So the next time you hear the liberal lie about Obama saving the auto industry, remember, that can’t happen unless people stop buying cars.


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