An Analysis of the 2009 Auto Bailout

I. Background The three major Detroit manufacturers in the automotive industry in the United States, General Motors, Chrysler and Ford are collectively referred to as Big Three from the viewpoint of size, sales, geography, and differentiation from competitors. At the beginning of 2009, Big Three provided them with a $ 25 billion initial relief plan to help them get out of bankruptcy, so they found themselves in debt and loss (Isidore). By analyzing the ethics behind the government's remedy and evaluating the support and opposition to the decision to provide such a program to an automobile company, considering this situation, I discussed in this paper To do.

In 2009, President Obama announced a new fuel efficiency standard for the car in the White House Rose Garden. New standards introduced after the relief of the automotive industry have been supported by automobile manufacturers. Dave McGrady, President of the Automakers Alliance of the Industry Trade Group at the time, said in a statement, "The significance of this announcement is that it has reached a new beginning, a time of cooperation." Demand for trucks and SUVs This is good news for automobile manufacturers who make high profits in these cars. However, due to federal regulations, the size and inefficiency of trucks and SUVs are limited. Lower fuel standards will allow the company to sell more fuel in the coming years.

Although Senator Hillary Clinton sold it, the 2009 car rescue plan was not friendly to my hometown. The car rescue package saved the entire industry. However, the plant in Mansfield - Ontario was shut down due to company restructuring by the federal government. Closure brought the city down the recession. Between 2010 and 2013, the population of my hometown has decreased by 2% (less than 50,000 people, more than 3,000 cities). Indeed, the closure of General Motors caused the unemployment rate to rise rapidly from June 2008 to March 2010. Mansfield is not the only city affected. GM closed plants in Michigan, Tennessee, Indiana, Virginia, and New York. In negotiations between automobile manufacturers, creditors and politicians, not only experienced people are left behind workers.

But as far as cars are concerned, the road rules are not the only political considerations. Many economic decisions focus on automobile manufacturing. One of the most convincing political interventions in the automotive industry is the 2009 bailout plan. The US government aims to help some US automakers maintain financial stability during recession, mainly because they are US institutions hiring thousands of people I made it. However, environmental problems have led to the creation of the latest automotive technology. As demand for clean cars increases, production of hybrid vehicles and electric vehicles (EV) is steadily increasing. This (and government regulation) required automakers to review the engine, fuel refueling system, and the overall design of the vehicle.