General Motors, Chrysler, and Obama's Bailout Program

In 2009, the Obama administration saved GM and Chrysler. General Motors and Chrysler began to go bankrupt in 2008, lost thousands of jobs, sales declined 40%, the threat of liquidation increased. Obama has allocated $ 8 billion to the TARP Foundation and spends nearly $ 50 billion to General Motors in the automotive industry. The allocated funds successfully held two of the three major car companies. It brought taxes that did not surge, saving millions of jobs.

General Motors and Chrysler (now Fiat Chrysler) said that millions of Americans will lose their job if the company bankrupts in the face of a sharp decline in sales during the recession of 2008 It was. Taxpayers come to rescue them. Congress invested over $ 80 billion in General Motors and Chrysler, and encouraged the purchase of new cars. Taxpayers eventually lost 9 billion dollars investment, but according to the Automobile Research Center, the rescue plan saved 5 million jobs.

Impact of automakers: General Motors, Chrysler and Ford had serious problems before the depression started. General Motors and Chrysler asked Washington to help taxpayers. The Bush administration used the Troubled Asset Relief Program (TARP) to provide general funds and Chrysler with sufficient funds to continue operations for several months until President Obama took office. The Obama administration lost those companies as a condition to provide funds through bankruptcy proceedings under the support of the government. Their fate is basically dependent on the conditions set by the government.

During the financial crisis of 2008, car manufacturers such as Chrysler and General Motors have requested taxpayers to provide assistance to maintain payment capacity. The high oil prices that exist are leading to a significant decrease in the sales of manufacturer's SUVs and heavy-duty vehicles. Citizens judged that it was difficult for the citizens to raise funds including car loans during the financial crisis, as banks tightened loan requirements, which further hindered automobile sales. Although the two car manufacturers were designed to provide services to financial companies, they ultimately received approximately $ 17 billion from TARP. In June 2009, Chrysler and GM stand out from the bankruptcy and are still one of the major automakers.

Recently, the rapid decline of the automobile industry has caused resource shortage and the current economic crisis. American cars can not avoid this trend. However, the general industry and the three largest automobile manufacturers in the United States - General Motors, Chrysler and Ford - are gradually recovering, timely rescue of the automobile industry and government reorganization of President Barack Obama are similar. Because there are many external factors that may affect the performance of the industry, understanding the environment is a great way to increase strength and reduce company weaknesses in that field. An analysis of the socio-cultural, technical, economic, ecological, political and legal forces affecting the automobile industry is presented below.