Here's the pertinent part of the transcript
PRESIDENT OBAMA: Well, Governor Romney's right. You are familiar with jobs being shipped overseas, because you invested in companies that were shipping jobs overseas. And, you know, that's your right. I mean, that's how our free market works.
But I've made a different bet on American workers. You know, if we had taken your advice, Governor Romney, about our auto industry, we'd be buying cars from China instead of selling cars to China. If we take your advice with respect to how we change our tax codes so that companies that are in profits overseas don't pay U.S. taxes compared to companies here that are paying taxes, now, that's estimated to create 800,000 jobs. The problem is they won't be here; they'll be in places like China. And if we're not making investments in education and basic research, which is not something that the private sector is doing at a sufficient pace right now and has never done, then we will lose the lead in things like clean energy technology.
Now, with respect to what we've done with China already, U.S. exports have doubled, since I came into office, to China. And actually, currencies are at their most advantageous point for U.S. exporters since 1993. We absolutely have to make more progress, and that's why we're going to keep on pressing.
And when it comes to our military and Chinese security, part of the reason that we were able to pivot to the Asia-Pacific region after having ended the war in Iraq and transitioning out of Afghanistan, is precisely because this is going to be a massive growth area in the future. And we believe China can be a partner, but we're also sending a very clear signal that America is a Pacific power, that we are going to have a presence there. We are working with countries in the region to make sure, for example, that ships can pass through, that commerce continues. And we're organizing trade relations with countries other than China so that China starts feeling more pressure about meeting basic international standards. That's the kind of leadership we've shown in the region. That's the kind of leadership that we'll continue to show.
MR. ROMNEY: I just want to take one of those points. Again, attacking me is not talking about an agenda for getting more trade and opening up more jobs in this country. But the president mentioned the auto industry and that somehow I would be in favor of jobs being elsewhere. Nothing could be further from the truth. I'm a son of Detroit. I was born in Detroit. My dad was head of a car company. I like American cars. And I would do nothing to hurt the U.S. auto industry. My plan to get the industry on its feet when it wa
s in real trouble was not to start writing checks. It was President Bush that wrote the first checks. I disagree with that. I said they need — these companies need to go through a managed bankruptcy, and in that process they can get government help and government guarantees, but they need to go through bankruptcy to get rid of excess cost and the debt burden that they'd — they'd built up.
And fortunately the president picked —
PRESIDENT OBAMA: Governor Romney, that's not what you said.
MR. ROMNEY: Fortunately, the president — you can take — you can take a look at the op-ed.
PRESIDENT OBAMA: Governor, you did not —
MR. ROMNEY: You can take a look at the op-ed.
PRESIDENT OBAMA: You did not say that you would provide, Governor, help.
MR. ROMNEY: You know, I'm — I'm still speaking. I said that we would provide guarantees and — and that was what was able to allow these companies to go through bankruptcy, to come out of bankruptcy. Under no circumstances would I do anything other than to help this industry get on its feet. And the idea that has been suggested that I would liquidate the industry — of course not. Of course not.
PRESIDENT OBAMA: Let's check the record.
MR. ROMNEY: That's the height of silliness.
PRESIDENT OBAMA: Let's — let's check the record.
MR. ROMNEY: I have never said I would — I would liquidate the industry. I want to keep the industry growing and thriving.
PRESIDENT OBAMA: Governor, the people in Detroit don't forget.
Indeed. So let us check the record.
Here is what Romney said
It is not wrong to ask for government help, 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.
The American auto industry is vital to our national interest as an employer and as a hub for manufacturing. A managed bankruptcy may be the only path to the fundamental restructuring the industry needs. It would permit the companies to shed excess labor, pension and real estate costs. The federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk.
In a managed bankruptcy, the federal government would propel newly competitive and viable automakers, rather than seal their fate with a bailout check.
Obama could not have been more wrong. Or dishonest.