The Truth: Obama Policies Bringing Auto Jobs Back to Ohio

The Romney campaign put up an ad in the battleground auto state of Ohio that was false, drawing the immediate ire of Chrysler management and workers. The Romney campaign is desperate to tarnish the record of the Obama administration in resuscitating the auto industry and bringing back jobs, including Chrysler jobs in Ohio.

The truth is that the U.S. auto industry is back on its feet thanks to the auto rescue loans. But equally important, it’s more competitive than it was in 2009, thanks to stronger fuel efficiency standards and support for advanced vehicle manufacturing adopted by the Obama Administration.

To recap, over the weekend, the Romney campaign ran an ad suggesting Chrysler– which received government bailout money–plans to ship American jobs to China. Apparently Romney’s campaign team badly misinterpreted a recent Bloomberg News story that said Chrysler, owned by Italian automaker Fiat SpA, is thinking of building all of its Jeep models in China for sale in the Chinese market.

Chrysler’s response has been immediate and blunt: Let’s set the record straight: Jeep has no intention of shifting production of its Jeep models out of North America to China. It’s simply reviewing the opportunities to return Jeep output to China for the world’s largest auto market. U.S. Jeep assembly lines will continue to stay in operation. A careful and unbiased reading of the Bloomberg take would have saved unnecessary fantasies and extravagant comments.

Workers at Chrysler are also clearly unhappy. According to the Detroit News article:

“Anyone with an ounce of knowledge about the auto industry and Chrysler’s production plans would know what Mitt Romney said wasn’t true,” said UAW Vice President General Holiefield, who directs the union’s Chrysler Department. “Since the 2009 auto rescue and recovery, we’ve added 7,000 workers at Chrysler, and we’ll add a third shift next week at the Jefferson North Assembly plant in Detroit – where Jeep Grand Cherokees and other models are made.”

“It’s just another slap in the face to our autoworkers, but not surprising since Mitt Romney opposed the auto loans of Chrysler and General Motors,” said Ken Lortz, who directs UAW Region 2B, which represents workers in Ohio, as well as Indiana. “The Jeep plant in Toledo is expanding right now. In fact one year ago, Chrysler announced the addition of a second shift and 1,100 more jobs, along with a $500 million investment in upgrading the plant and adding a body shop. Shame on Mitt Romney for twisting the story to scare people and then not even admitting he was wrong.”

The fact that the auto industry is back on its feet is irrefutable.

According to analysis done by the Natural Resources Defense Council, of official data from the Bureau of Labor Statistics, since the auto industry employment low point in June 2009, the U.S. auto sector has added 231,600 jobs as of September 2012. Employment in auto manufacturing (motor vehicle assembly plus motor vehicle parts manufacturing) has increased by 152,300, for 24.4% gain since the trough. Auto dealer jobs have also grown by 79,300 jobs.

Ohio’s auto sector also is seeing robust growth with 9,600 jobs added for a gain of 14.7% since the trough of June 2009. Ohio, the unemployment rate has also dropped much faster than the national rate, by 3.4 percentage points to below the national average to 7.2%.

But the auto industry is not just back on its feet, it’s more competitive than ever, now able to go head-to-head on the latest fuel efficiency technologies with the Japanese, Koreans and Germans.

Driving this competiveness is the latest round of standards. Model year 2012 is the first year of a long-term federal program that requires a sales-weighted average of the equivalent of 35.5 mpg by 2016 and 54.5 mpg by 2025.

The evidence of the Obama fuel economy standards driving job growth is clear as documented in NRDC’s recent study Driving Growth.

Hundreds of millions of dollars of investment are flowing into Ohio and thousands of workers are being hired. For instance:

  • In Toledo, Chrysler is investing $500 million and hiring 1,100 new workers to build the next generation, more fuel-efficient Jeep models, and GM is investing in building advanced transmissions to squeeze more miles from each gallon.
  • In Lordstown, GM has three shifts building the fuel efficient, compact Chevy Cruze. In the Marysville area, Honda is investing gas sipping continuously variable transmissions to help make its new Accord class leader for fuel efficiency.
  • Finally, Ford has hired a third shift to its Cleveland factory to build the award winning, highly popular Ecoboost engines.

It’s unfortunate when any campaign misrepresents the facts. But given the strong and clear evidence of how the Obama administration has helped the auto industry in Ohio and elsewhere, it appears that his opponent feels it must twist the truth.

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The Power of Running on Clean Energy — Even for GOP Candidates

Super Tuesday turned out to be Groundhog Day: Three candidates saw their shadows and winter could last for six more months. The presidential nomination process may be grinding on, but Congressional races are starting to heat up.

Candidates are zeroing on their messages, and at a time when jobs are scarce and gas prices are high, smart candidates are discovering the power of running on clean energy.

Even some Republican candidates are promising to deliver clean energy to their constituents.

Nevada Senator Dean Heller of Nevada, for instance, is a Tea Party darling who has followed the GOP leadership’s attack on environmental safeguards. Yet he has also been a staunch supporter of clean energy development in his state.

Why the apparent contradiction? Location, location, location.

Nevada is home to both record unemployment and enormous clean energy reserves. The state suffered some of the worst fallout of the housing bust, and anyone running for office since the financial meltdown has needed a laser-like focus on jobs in order to win.

Green jobs are the low-hanging fruit. Nevada currently has over 16,500 jobs in the clean economy — 33 percent more than the oil and gas sector in the state. Between 2003 and 2010, Nevada added 5,411 clean jobs, meaning that the sector grew nearly 6 percent annually even through one of the toughest economic periods in decades.

This growth won’t be slowing down anytime soon. According to a recent Ernst and Young study, Nevada is the fifth most promising state for geothermal and solar power. And a recent SNL energy project database found that construction has begun on 10 solar, geothermal and wind projects, creating jobs, cutting pollution and reducing our dependence on foreign energy.

Yet in 2010, Tea Party candidate Sharron Angle made the mistake of disparaging clean energy and calling green jobs a “scam“. She lost her race to Harry Reid.

Harry Reid, meanwhile, put clean energy jobs at the heart of his campaign. “We highlighted it in everything we did whether it was through our mail program, TV program, Internet program,” said Reid’s campaign manager Brandon Hall. “It was always the message that we led with.”

Reid’s campaign research found that voters were basing vote on how much Reid had done for the state. Clean energy, Hall explained, “was one of the top issues he was able to leverage his leadership position to benefit Nevada. There was investment coming into Nevada in clean energy. And jobs were being created. For us, it was our top-testing issue.”

NRDC’s Action Fund’s analysis confirms that supporting clean energy gives candidates an advantage. It offers a positive, solutions-based narrative to talk about issues that matter most to Americans: jobs, the economy, gas prices, and the health of their families.

Heller seems to agree. One of his campaign emails trumpets the fact that Heller “has long fought to bring a variety of sources of renewable energy to Nevada.”

And it’s true; he has. He voted for a renewable energy standard and has been a supporter of renewable energy production tax credit. He voted to extend royalties and lease income from solar and wind projects and to expedite clean energy development on public lands. He even sent a letter to President Obama in support of the White House’s clean energy plan and its ability to create jobs.

At the same time, Heller voted with GOP leadership on a raft of bills that would strip away clean air safeguards and make life easier for dirty coal-fired power plants. He also voted in favor of taxpayer subsidies for oil companies.

Some of the measures Heller opposed would have helped level the playing field between dirty fossil fuels and clean energy resources. It would benefit Nevada if Heller cast more votes on the clean side.

He wouldn’t be the only Republican to do so. Last month, 21 Republican representatives voted against a GOP-sanctioned transportation bill that would have allowed drilling in the Arctic National Wildlife Refuge and up and down the Atlantic and Pacific Coasts.

These Republican lawmakers seem to realize voters are looking for more than the same-old drill-happy approach to energy development. Instead, voters want innovation, new investment, and job opportunities.

I don’t agree with a lot of Heller’s votes on the environment, but I respect his commitment to clean energy. His track record shows that even Tea Party favorites can deliver clean energy jobs for their constituents.

GOP Responses to State of the Union Lack Vision for Energy Future

President Obama reaffirmed his commitment to a clean energy future for America last night in his State of the Union Address. The Republican responses, on the other hand, underscored just how stuck in the past the leaders of the GOP remain.

From Indiana Governor Mitch Daniel’s official response to the statements of the Party’s Presidential candidates, not one Republican leaders offered any vision or plan for how America can innovate, create technological breakthroughs, or lead the global clean energy market. One would think they live in some perverse, parallel universe.

President Obama offered a detailed blueprint for how a national clean energy standard, energy efficiency programs, tax credits for wind and solar projects, government support of advanced research, and other measures could create jobs and make America more energy independent.

Frances Beinecke, President of the NRDC Action Fund, states, “More than 100,000 people currently work in the solar industry, according to the National Solar Jobs Census. The Bureau of Labor Statistics says the wind industry employs 85,000 Americans. And more than 150,000 Americans currently have jobs making parts for and assembling clean cars — hybrids, electric cars, and other advanced vehicles that hardly existed 10 years ago.”

Neither Daniels nor Romney mentioned these enormous opportunities. Instead, they stuck to the same old call for more drilling. That’s their default button.

Funny thing was President Obama already beat them to it. Much to our concern, energy companies drilled almost 21,000 oil wells in the first eight months of 2011 — the highest number in almost 30 years. That’s nearly double the amount drilling the same period in 2010, and nearly triple the number drilled in 2009.

Yet all that drilling hasn’t shielded us from price spikes. In 2011, the United States produced more oil than at any time since 2003, and yet gas prices still hit record highs. Oil prices are set on an international market and shaped by global forces beyond our control. We can’t rely on fossil fuels alone to power our economy. We need to develop additional homegrown resources like better performing cars, sustainable biofuels, and wind and solar power.

Americans agree. Nine in ten Americans — including 82 percent of Republicans and 91 percent of Independents — say developing renewable energy should be a priority for the president and Congress. But Republican leaders haven’t caught on yet.

In his response to the State of the Union Address, Romney made no reference to renewable power, efficiency, or any other clean solution. Daniels didn’t either. In fact, most of the Republicans focused on President Obama’s rejection of the Keystone XL pipeline last week — repeatedly misstating that this decision cost “tens of thousands of jobs.” The truth is that Keystone XL would’ve created a few thousand jobs (only a few hundred permanent jobs) and the bulk of the oil would have been exported to other countries. But my bigger beef with this reasoning is — if Republicans are so concerned about jobs? Why are they fighting the very public safeguards that will create millions of new positions? Frances Beinecke once again points out that, “public health and environmental standards create jobs at the same time they protect our families from polluters… The number of Americans working as boilermakers grew by 35 percent between 1999 and 2001 because of updates in Clean Air Act standards. Taken together, the environmental technology sector has generated more than 1.7 million American jobs as of 2008.” Why are those few thousand temporary jobs more important to the GOP then millions of good-paying jobs that can never be outsourced and will bring energy right here to our backyard?

Daniels misjudged the public on another key issue when he inserted a dig about light bulbs into his speech. This was a reference to the efficiency standard for light bulbs that will save consumers $10 million a year and that Congress and President Bush supported four years ago. I welcome a little humor in political discourse, but when Daniels mocked this standard, he sounded remarkably out of step. These light bulbs help prevent the need for 30 large power plans and all the pollution they generate. This helps make our families healthier.

Further, at a time when so many families are struggling, Daniels decides to ridicule a measure that will lower monthly utility bills. Just one company in Ohio Florida – Lighting Science Group — has saved Americans more then $34 million in electricity costs each year. The new standards will result in a savings of more then $12 billion per year in the form of lower electric bills. My family members — most of them are conservative Republicans — would never make fun of saving money because they value their hard-earned dollars.

This just another example of how out-of-touch Republican leaders are when it comes to energy. Most Americans want to save money on electric bills, drive cars that go farther on a gallon of gas, and expand clean energy. Today’s crop of Republican leaders doesn’t have anything to offer them.

Most Americans want to save money on electric bills, drive cars that go farther on a gallon of gas, and expand clean energy. Last night, this current crop of Republican leaders demonstrated anew that they have nothing to offer but the same dog-eared roadmap for the race to the bottom.

Amended on 1/31/12 to correct the location of Lighting Science Group.

President Obama Doubles Down on Clean Energy

I just finished watching the GOP primary debate in South Carolina. It was a pretty entertaining two hours which kicked off with Newt Gingrich admonishing CNN for daring ask a question about his personal question (um, didn’t he try to impeach a President over something personal?) and ended with all candidates agreeing that any of them would be better then the guy in office now. But what I found most interesting was not what they talked about – but what was missing. Where was energy?

Governor Romney made one attempt to talk energy when trying to deflect criticism for not releasing his taxes but besides that, there wasn’t a lot of talk about what will be a central part of our future.

President Obama demonstrated bold leadership this week when he rejected the Keystone XL pipeline. Some are trying to marginalize the Keystone decision by saying Obama made it to please wacko environmentalists. Newt Gingrich went so far as to say, “President Obama has made it clear once again that he is committed to Saul Alinksy radicalism at the expense of working Americans.”

The trouble is that the people lined up against the pipeline don’t fit into a radical box. Republican lawmakers in Nebraska, ranchers and farmers from the Heartland, security hawks in the Armed Forces, and religious leaders from across the country don’t count themselves among the extreme left. They are simply Americans who don’t think a dirty pipeline to export Canadian oil to Asia markets is in our national interest.

GOP leaders have also tried to turn the Keystone decision into a jobs issue, but they can’t even agree on the numbers. One industry-funded study being quoted was so far-reaching that it includes new jobs for dancers and choreographers in its tally. Here’s the number that matters most: the company behind the pipeline, TransCanada, said in sworn testimony the project will only generate “hundreds” of permanent jobs.

Since the jobs numbers turned out to be thin, some lawmakers have tried to claim the pipeline would lower gas prices. But by diverting Canadian oil that would otherwise go to the Midwest, TransCanada has admitted the pipeline would increase the price Americans pay for Canadian oil by $3.9 billion. The other interesting thing is that the price of gas – when DOWN after the Keystone XL pipeline was rejected this week.

Next GOP leaders tried to position the Keystone decision as a sign he can’t stand up to his base. But even some pipeline supporters view Obama’s choice as a matter of fair play. They dislike that Republicans in Congress wanted Obama to ignore the extensive review process required by law for major infrastructure projects and approve a pipeline whose route hasn’t yet been confirmed—all within 60 days.

Governor Schweitzer told MSNBC, “As chief executive of Montana, if they ask me to approve of a pipeline with an incomplete application, I would have to reject it and I am the biggest proponent of this pipeline in America. These jokers in Congress that are trying to force the president to approve an incomplete application are just making mischief.”

What has impressed me most was that even as the Republican leaders were trying every argument they could, Obama doubled down. The same day he announced the Keystone decision he released his first 2012 campaign ad, and the topic was clean energy. It lays out the administration’s energy achievements, but it also positions clean energy as the path to the future.

In the end, that’s why Republicans and Democrats are fighting to win the energy messaging war in this race. They know energy is represents the trifecta of campaign-friendly values: patriotism, independence, and jobs.

The current Republican field’s collective vision for energy adds the value of conservatism — more of the same fossil fuels we have used for the past 100 years. Obama’s vision for energy layers on the values of ingenuity, innovation, leadership, and dominance in global markets. The dirty Keystone XL pipeline doesn’t have a place in the vision, and by rejecting, Obama has not only confirmed his clean energy leadership, but he has laid claim to powerful American values.

Can We Give “Job-Killing Regulations” a Rest?

Politicians love to go for the easy applause line and lately, in Washington, that has meant decrying “job-killing regulations.”

Republican candidates for president have all gone for this crowd-pleaser.

  • Massachusetts Governor Mitt Romney has promised to “tear down the vast edifice of regulations the Obama administration has imposed on the economy.”
  • Texas Governor Rick Perry claims he would halt all regulations and impose a sunset so that they would automatically expire.
  • Herman Cain claims that eliminating regulations would provide “an immediate boost for our weakened economy.”

Even President Obama has at times appeared to buy-in to this notion, ordering every agency to review its existing regulations to eliminate burdens on business, even though such analysis would have been completed when the regulation was first written.

It may be a crowd-pleaser, but it turns out that it simply isn’t true that regulations kill jobs. The Washington Post talked with some of the country’s top economists and experts on the relationship between job creation and regulations. The conclusion?

“Overall impact on employment is minimal.”

The truth is that regulations can impact jobs but don’t have much effect when it comes to employment. That means that a particular regulation might reduce jobs in one industry but create them in another. For example, a clean air regulation might reduce jobs at a dirty coal-fired power plant and create new jobs at a clean-burning natural gas plant. But, looking at the big picture, employers report that only 0.3% of layoffs are due to “government regulations/intervention.” That’s small potatoes compared with the 25% of jobs lost due to reduced demand for products and services in our weak economy.

While they may not have a big impact on jobs, regulations do have a big impact in a lot of other areas, namely in protecting workers, the public and the environment. So, let’s put “job-killing regulations” to rest. If our politicians are looking for new descriptions, how about “life-saving, people-protecting, society-benefiting regulations”? It’s not so catchy, but it has the benefit of being true.