Romney Says Auto Industry Needs Total Makeover

Former Massachusetts Governor Mitt Romney, the son of a onetime GM president, takes to the op-ed pages of the New York Times today to voice his opposition to the proposed bailout of the automotive industry without some radical changes in the companies.

Romney, considered a potential aspirant for the White House in 2012, argues that in order to save the Big Three automakers, there will have to be changes in labor agreements, management and long-term investments in technology.

"It is not wrong to ask for government help," Romney writes, "but the automakers should come up with a win-win proposition. I believe the federal government should invest substantially more in basic research — on new energy sources, fuel-economy technology, materials science and the like — that will ultimately benefit the automotive industry, along with many others. I believe Washington should raise energy research spending to $20 billion a year, from the $4 billion that is spent today. The research could be done at universities, at research labs and even through public-private collaboration. The federal government should also rectify the imbedded tax penalties that favor foreign carmakers. But don't ask Washington to give shareholders and bondholders a free pass — they bet on management and they lost."

Popular

Comments

Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Watch Now

New Android App

For your Android phone and tablet, download the FREE redesigned app, featuring CBSN, live 24/7 news.

Download