Friday, October 26, 2012

Another Romney Investment: 25,000 jobs lost, buys Factories in China, costs workers $1 billion in pensions

Article Mirror

October 26, 2012

Mitt Romney is running his campaign as a ‘tough on China Job Creator’ but what we've witnessed is not proof of his assertion. Again. Another one. Delphi Automotive completed its acquisition of FCI Group’s motorized vehicles unit for 765 million euros ($987.5 million), Business Week reports. 

FCI is another Bain affiliated company. Bain Capital, which Mitt Romney founded.

DailyKos reports:

Delphi had fired 25,000 union workers, costing those workers about $1 billion from their pensions. Instead of using its extra capital to do right by the American worker, Delphi just finished buying factories in Asia that make car parts, for the same amount of money Delphi cost those workers’ pensions:

.As The Nation has reported, Mitt Romney made a fortune off of the auto-bailout by investing in Delphi and screwing those workers.

It gets even murkier. As pointed out by The Nation, all Delphi’s stockholders—the Romneys included—had to do to ease the burden on their workers was to emulate GM and pay up.

Making good on the full pensions for salaried workers would cost Delphi a one-time charge of less than $1 billion. This year, Delphi was flush with $1.4 billion in cash—meaning its owners could have made the pensioners whole ?and still cleared a profit. Instead, in May, Delphi chose to use most of those funds to take over auto parts plants in Asia at a cost of $972 million—purchased from Bain Capital.

The Delphi deal was just finalized today which happens to be the very same day that Republican Presidential candidate Romney falsely claimed that Jeep is moving U.S. production to China.

DKos reports, “Even more ironically, in March 2009, Delphi held the U.S. car industry hostage (even jeopardizing Chrysler the maker of Jeep autos).”

But, the former Governor claims he is going to create jobs in America, while his past, and those he is affiliated with are proving otherwise. It’s never been about the economy, stupid.

Meanwhile, the economy is slowly recovering, but Romney claims it’s not fast enough. 

These ‘people’ — the Corporations — are not the job creators.

See the Sensata story here. 

Image: Society Hub.