IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp8888.html
   My bibliography  Save this paper

A Retrospective Look at Rescuing and Restructuring General Motors and Chrysler

Author

Listed:
  • Goolsbee, Austan D.

    (University of Chicago)

  • Krueger, Alan B.

    (Princeton University)

Abstract

This paper takes a retrospective look at the U.S. government's effort to rescue and restructure General Motors and Chrysler in the midst of the 2009 economic and financial crisis. The paper describes how two of the largest industrial companies in the world came to seek a bailout from the U.S. government, the analysis used to evaluate their request, and the steps taken by the government to rescue them. The paper also summarizes the performance of the U.S. auto industry since the bailout and draws some general lessons from the episode.

Suggested Citation

  • Goolsbee, Austan D. & Krueger, Alan B., 2015. "A Retrospective Look at Rescuing and Restructuring General Motors and Chrysler," IZA Discussion Papers 8888, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8888
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp8888.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Efraim Benmelech & Ralf R. Meisenzahl & Rodney Ramcharan, 2017. "The Real Effects of Liquidity During the Financial Crisis: Evidence from Automobiles," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(1), pages 317-365.
    2. Howes, Cooper, 2022. "Why does structural change accelerate in recessions? The credit reallocation channel," Journal of Financial Economics, Elsevier, vol. 144(3), pages 933-952.
    3. Sima M. Fortsch & Jeong Hoon Choi & Elena A. Khapalova, 2022. "Competition can help predict sales," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(2), pages 331-344, March.
    4. Adler, Nicole & Andreana, Gianmarco, 2024. "Aiding airlines for the benefit of whom? An applied game-theoretic approach," European Journal of Operational Research, Elsevier, vol. 314(2), pages 552-564.
    5. Doremus, Jacqueline & Helfand, Gloria & Liu, Changzheng & Donahue, Marie & Kahan, Ari & Shelby, Michael, 2019. "Simpler is better: Predicting consumer vehicle purchases in the short run," Energy Policy, Elsevier, vol. 129(C), pages 1404-1415.
    6. Metrick, Andrew, 2022. "The Rescue of the US Auto Industry, Module Z:Overview," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 4(1), pages 300-367, April.
    7. Nelly Exbrayat & Thierry Madiès & Stéphane Riou, 2020. "A Simple Model of Corporate Bailouts in a Globalized Economy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(4), pages 1575-1605, October.
    8. David Leuwer & Bernd Süssmuth, 2018. "Assessing Temporary Product-Specific Subsidies: A Time Series Intervention Analysis," CESifo Working Paper Series 6946, CESifo.
    9. Fazel-Zarandi, Mohammad M. & Horstmann, Ignatius & Mathewson, Frank, 2021. "Can Firms Benefit From Competition?," International Journal of Industrial Organization, Elsevier, vol. 76(C).
    10. Peter Temin, 2015. "The American Dual Economy: Race, Globalization, and the Politics of Exclusion," Working Papers Series 26, Institute for New Economic Thinking.
    11. Ryan A. Decker & Robert J. Kurtzman & Byron F. Lutz & Christopher J. Nekarda, 2021. "Across the Universe: Policy Support for Employment and Revenue in the Pandemic Recession," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 267-271, May.
    12. David Rezza Baqaee, 2018. "Cascading Failures in Production Networks," Econometrica, Econometric Society, vol. 86(5), pages 1819-1838, September.
    13. A.V. Govorova, 2023. "History and Paradoxes of the Chinese Car Market: Eastern Strategies and the Asian Regulator," Studies on Russian Economic Development, Springer, vol. 34(1), pages 150-158, February.
    14. Nye, Alexander, 2022. "The Rescue of the US Auto Industry, Module A: Automotive Bridge Loans," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 4(1), pages 49-92, April.
    15. Lyndon Moore & Gertjan Verdickt, 2022. "Railroad Bailouts in the Great Depression," Papers 2205.13025, arXiv.org, revised May 2023.
    16. Martin Krzywdzinski, 2021. "Automation, digitalization, and changes in occupational structures in the automobile industry in Germany, Japan, and the United States: a brief history from the early 1990s until 2018 [Managing fle," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 499-535.
    17. Jonathan Doh & Pawan Budhwar & Geoffrey Wood, 2021. "Long-term energy transitions and international business: Concepts, theory, methods, and a research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(5), pages 951-970, July.
    18. Adam R. Fremeth & Guy L. F. Holburn & Brian K. Richter, 2016. "Bridging Qualitative and Quantitative Methods in Organizational Research: Applications of Synthetic Control Methodology in the U.S. Automobile Industry," Organization Science, INFORMS, vol. 27(2), pages 462-482, April.
    19. Bo Xiong, 2017. "The implications of US punitive tariffs on Chinese tires for rubber exports from South-East Asia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(4), pages 575-586, October.

    More about this item

    Keywords

    auto industry; auto bailout;

    JEL classification:

    • H0 - Public Economics - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • G01 - Financial Economics - - General - - - Financial Crises
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp8888. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.