Mitt Romney said ahead of the election, "Look into the future and see the debt that's being amassed and say, 'What is right for America?' This is a time of big choices, of big consequence. It's a big election." Whether you're a supporter of President Barack Obama or Governor Mitt Romney, our decision will not only greatly impact our policy and our economy, but it stands to shift the automotive industry as well.
On Friday, Republican candidate Mitt Romney vowed that if he will serve as president, he will halt government funding for electric vehicle companies despite continuing the support of energy research.
During the first round of presidential debates, Romney had already criticized the president, "You don't just pick the winners and losers; you pick the losers."
Then, Romney said during a visit in Iowa, "Rather than investing in new electric auto and solar companies, we will invest in energy science and research to make discoveries that can actually change our energy world. And by 2020, we will achieve North American energy independence."
Romney added further, "The idea of individual investments being made and guarantees being made to specific companies, I think, is a less effective course than the government investing in basic science and technology - and then letting private enterprise exploit the innovations."
Earlier this month, electric vehicle lithium-ion battery company A123 Systems filed for Chapter 11 Bankruptcy Protection after the company failed to meet a debt payment deadline. What's more, solar company Solyndra had also filed for a high profile bankruptcy earlier this year as well, losing $535 million and laying off 1,100 workers.
While companies such as Tesla are showing far better potential with the release of the all new Model S, the extremely poor success rates that are inherent to start-up companies are enough to convince Romney there is a need for a better solution. "The president invested taxpayer money - your money - in green companies, now failed, that met his fancy, and sometimes were owned by his largest campaign contributors. He spent billions of taxpayer dollars on investments like Solyndra, Tesla, Fisker, and Ener1, which only added to our mounting federal debt."
While Governor Romney's opinion certainly has merit, Tesla might not have gotten off the ground without federal funding and it surely would have had no way to grow as well as it has.
Do you believe that government support has its place in the private sector? Are investments in energy science and research the better way to go? Let us know in the comment section below!
[Source: Detroit News]
