“It was another example of crony capitalism. If you’re a big business or bailout business and you’ve got buddies in big government, big unions, you get the special deal. But if you run the hardware store, run the butcher shop or run the bicycle-repair shop, then you’re out of luck.” Tim Pawlenty former governor of Minnesota and 2012 Rebublician presidential contender.
Tim Pawlenty is not letting Obama have bragging rights as the president continues to use the auto industry as a staging ground for the Democrats 2012 presidential bid. Pawlenty blasted the GM bailout as a “sweetheart” deal that favored union workers at the expense of the shareholders and creditors.
President Obama also holds out the success of Chrysler Corporation, LLC. as an example of American ingenuity and continues to show up and speak to crowds of union workers in the midwest plants who support his presidential bid. The success of Chrysler, and we use this term loosely, comes to a state with a 10.2% unemployment rate. The car maker’s bailout came at the expense of shareholders and product liability claims that were not honored as the government decided who would be taken care of and who would not.
To date, $3.3 billion in claims have been asserted against Motors Liquidation Co. the formal name for GM’s bankruptcy estate. Profitable General Motors auto dealerships across the country were closed as part of the restructuring and in retrospect along party lines.