There has been much confusion lately over the issue of Chrysler moving Jeep production to China. Bloomberg issued a press release promoting this and Mitt Romney then used it in a political ad creating yet another firestorm over its inaccuracy. Is it inaccurate? Let’s examine.

Here is the statement that Romney made.

“I saw a story today that one of the great manufacturers in this state, Jeep, now owned by the Italians, is thinking of moving all production to China,” Romney said.

Romney is wrong. Jeep is not moving ALL production of Jeeps to China. Chrysler CEO Sergio Marchionne sent an e-mail to employees clarifying this.

“I feel obliged to unambiguously restate our position: Jeep production will not be moved from the United States to China.”

Forbes has the entire e-mail you can read here – http://www.forbes.com/sites/jimgorzelany/2012/10/30/marchionne-says-it-is-inaccurate-to-suggest-jeep-production-will-shift-to-china/

The Obama camp is jumping all over this story as a Romney lie. Egads! Imagine that! A campaign that lies? Not so fast.

Without question, Romney got it wrong when he said that all Jeep production would leave the country. However, some Jeep production is clearly leaving the country and that’s what the mainstream media and the Obama campaign won’t tell you. From the same e-mail.

“Together, we are working to establish a global enterprise and previously announced our intent to return Jeep production to China, the world’s largest auto market, in order to satisfy local market demand, which would not otherwise be accessible.”

Fiat, the parent company of Chrysler, also announced a new Jeep line for production in Europe – http://www.huffingtonpost.com/huff-wires/20121030/eu-italy-earns-fiat/

Fiat, which owns U.S. carmaker Chrysler, also will unveil a new smaller Jeep for production in Italy aimed primarily at Europe, and focus the Fiat brand on the 500 and Panda compact car ranges.

The UAW is also jumping on the anti-Romney bandwagon.

“Anyone with an ounce of knowledge about the auto industry and Chrysler’s production plans would know what Mitt Romney said wasn’t true,” UAW Vice President General Holiefield, who directs the union’s Chrysler Department, said in an Oct. 27 press release.

Ken Lortz, UAW director of the region that includes Ohio and Indiana, said in an Obama campaign conference call with reporters yesterday that the Romney ad represents “the lowest form of political tactics.” The spot features “clever word- smithing” to avoid outright falsehoods, he said, “but the intent of the ad is completely dishonest.”

Interesting that the UAW is so quick to jump on Romney for “clever word-smithing” yet doesn’t hold the Obama campaign to the same threshold.

Clearing through the mud we can see that the Romney statement was wrong but the tv ad was 100% correct. Fiat does indeed own Chrysler and Jeep. Jeeps will be built in China as well as in Europe. Yes UAW, production of your iconic Jeep is moving overseas, just not all of it. Make sure you don’t practice the “lowest form of political tactics” and mislead the American public.

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7 thoughts on “Did Romney lie in his ad about Jeep production moving to China? Or is the UAW and the Obama campaign not telling you the whole truth?

  1. How right you are my friend. Too bad we can’t install ballot boxes at the gas pumps in the northeast. Don’t think the POTUS would fare too well.

  2. Ah, the wonderful world of politics. He said, she said, they said, or something like that. No matter what the facts are, our politicians seem to be able to twist them to meet their own needs and standards.

  3. So, is it that some Jeep production jobs will be lost in the U.S. and reallocated to China, Europe, etc.? Or is it that additional jobs are going to be created in those countries. Seems like the latter to me; meaning no U.S. Jeep job loss. Nothing else to see here folks, keep it moving.

  4. Nothing else to see here folks, keep it moving

    You’re correct. After all, we’re talking about a majority foreign-owned car company, which Chrysler is now, adding future production overseas. More accurately, they are just resuming China production which was ended in 2009 with the Chrysler bankruptcy.

    Fiat is failing miserably in Europe so they will continue to reap the benefits of the increased Chrysler profits since the bailout to prop up the corporate bottom line. Production expansion of a whole multitude of new models, some of which may have had a chance at occuring in America, will instead be in Europe to re-populate Fiat factories there.

    In the end, I would imagine the Romney camp is merely illustrating the point that U.S. taxpayer dollars went to bailout what has become just another foreign-owned car company and allowed it to use profits from its North American sales to prop up overseas losses and is now going to expand overseas. If Toyota or Honda, which employ far more Americans building foreign cars on American soil, made a similar announcement it would be no big deal. In fact, Honda alone employs over 14,000 Americans compared to about 9,300 for Jeep. But some still hang on to the notion that Jeep is American.

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