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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 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Lorraine Eden & Wendy Dobson (ed.), 2005. "Governance, Multinationals and Growth," Books, Edward Elgar Publishing, number 3503.
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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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