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Restructuring of the U.S. Auto Industry in the 2008-2009 Recession

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  • Thomas Klier
  • James M. Rubenstein

Abstract

After many years of declining fortunes, the Detroit Three carmakers were at risk of closure and liquidation during the severe recession of 2008-2009. Efforts by the Bush and Obama administrations to support the carmakers culminated in a government-managed reorganization of Chrysler and General Motors during 2009. As a result of the restructuring, the two carmakers emerged from bankruptcy protection with lower labor costs, higher capacity utilization, and a more concentrated geographic distribution of assembly plants.

Suggested Citation

  • Thomas Klier & James M. Rubenstein, 2013. "Restructuring of the U.S. Auto Industry in the 2008-2009 Recession," Economic Development Quarterly, , vol. 27(2), pages 144-159, May.
    • Handle: RePEc:sae:ecdequ:v:27:y:2013:i:2:p:144-159
    DOI: 10.1177/0891242413481243
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    References listed on IDEAS

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    1. Thomas H. Klier & James M. Rubenstein, 2012. "Detroit back from the brink? auto industry crisis and restructuring 2008–11," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 36(Q II), pages 35-54.
    2. Thomas Klier & James Rubenstein, 2011. "What role did regional policy play in addressing the US auto industry crisis?," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 11(2), pages 189-204.
    3. Thomas H. Klier, 2009. "From tail fins to hybrids: How Detroit lost its dominance of the U.S. auto market," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 33(Q II), pages 2-17.
    4. Atif Mian & Amir Sufi, 2012. "The Effects of Fiscal Stimulus: Evidence from the 2009 Cash for Clunkers Program," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(3), pages 1107-1142.
    5. Thomas J. Holmes, 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 667-705, August.
    6. Thomas H. Klier & James M. Rubenstein, 2010. "The changing geography of North American motor vehicle production," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(3), pages 335-347.
    7. Lorraine Eden & Wendy Dobson (ed.), 2005. "Governance, Multinationals and Growth," Books, Edward Elgar Publishing, number 3503.
    8. Thomas Klier & James Rubenstein, 2008. "Who Really Made Your Car? Restructuring and Geographic change in the Auto Industry," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wrmyc.
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    1. Mordue, Greig, 2017. "Electricity prices and industrial competitiveness: A case study of final assembly automobile manufacturing in the United States and Canada," Energy Policy, Elsevier, vol. 111(C), pages 32-40.
    2. Huang, Jian & Leng, Mingming & Liang, Liping & Luo, Chunlin, 2014. "Qualifying for a government’s scrappage program to stimulate consumers’ trade-in transactions? Analysis of an automobile supply chain involving a manufacturer and a retailer," European Journal of Operational Research, Elsevier, vol. 239(2), pages 363-376.

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