The Financial Crisis Of The U.s. Auto Industry - 1295 Words

The Problem The year was 2008 and the daily news for Americans could make us choke on our morning coffee. The financial crisis was something out of a movie that could be titled The Horrors from Wall Street. The nasty mortgage mess was having a negative impact on other areas of the economy. The U.S. auto industry was taking a sizeable hit. It became hard to conceive that a legacy industry like 100 year old General Motors could be in deep trouble. But indeed they were and by June, 2009, General Motors filed for bankruptcy. We held a collective sigh as we heard the word â€Å"bailout† for this iconic company. The government bailout came with a carload of stipulations and it was made clear to General Motors that they would have to make extensive changes in order to comply with all requirements. The government car czar, Steve Ratner, and the Obama administration expected executive leadership at General Motors to turn the company around and as soon as possible. With the passage of time, there is detailed analysis available for researching the complexities surrounding the bankruptcy and government bailout of General Motors. Summary of Findings I had two prevailing questions on my mind when I began my research. The first: what historical conditions existed at GM that contributed to bankruptcy and the need for a bailout? The second: how was the bailout was structured and what requirements were placed on GM? Research on the historical conditions a GM lead me to 2012 article fromShow MoreRelatedThe Financial Crisis Of The Troubled Asset Relief Program860 Words   |  4 PagesThe 2008 financial crisis brought panic and fear to the nation as the stock market plunged, reducing the wealth of millions of Americans. The housing market crash put nearly all the major financial institutions in grave danger of insolvency. The government reacted quickly to not only stop the bleeding and devastation but also to restore confidence in the financial system and reassure the public the economy wasn’t in a free fall. This was not a time to sit back and let the market self-adjust. UnderRead MoreEssay on Corporate Bailout and the Law1286 Words   |  6 Pagesof the 2008-2009 financial crises, the largest ever since the Great Depression of the 1930s, witnessed the near collapse of multibillion-dollar industries in the United States. Concerns over the economic impact of the possible collapse of these industries compelled the then administration and Members of Congress to seek legislative options to salvage them. Consequently, two of the industry biggest players in the auto industries, General Motors and Chrysler, were offered financial support by the governmentRead More2009 Chrysler Fiat Strategic Alliance - Essay1034 Words   |  5 Pages2009 Chrysler-Fiat strategic alliance, its current issues, and future viability in the global auto industry. The new landscape of the American auto industry and the role of Fiat is analyzed in the cross-border tie-up. After de-merging with Daimler in 2007, Chrysler did not do well because of the 2008-2009 global financial cris is and its bankruptcy filing. Chrysler’s other problems included its financial constraints and heightened competition in North America. The company had no choice but to lookRead MoreA Brief Note On The American Auto Industry861 Words   |  4 Pagesthe American auto industry bloomed in the United States leading to hundreds of manufactures. Come 1920’s there were three main auto manufactures known as the â€Å"big three† (2015, Wikipedia). Those three manufactures are Ford, General Motors and Chrysler. Global competition started to cut into the American auto market come the 1970s. The international auto market combined with oil prices and economic crisis continue to affect the American auto market. Overall the American auto industry has experiencedRead MoreCase Study : The Auto Bailout1383 Words   |  6 Pages 1. The Auto Bailout Daniel Levi, in his book, Group Dynamics for Teams, declares that â€Å"a team is a special type of group in which people work interdependently to accomplish a goal† (1). Near the end of 2008, Chrysler and General Motors were in need of help because they confessed to the world that they were in danger of financially collapsing, thus the US auto bailout was created. The task force was brought forth by the Obama administration to help Chrysler and General Motors overcome their financialRead MorePestel: Electric Vehicle and Tesla Motors Essay807 Words   |  4 PagesCase 5 Tesla Motors and U.S. Auto Industry As a pioneer of green technology car manufactory, Tesla Motors has placed himself in the U.S. automotive industry. Tesla Roadster is considered to be a cash cow in 2009, and it is the only electric cars have been mass product. However, after the competitors had entered the market, alternatives joined the battle of green technology car, such as hybrids, fuel cell ,etc. Furthermore external environment has changed. Elon Musk, the co-founder and head ofRead MoreThe Effect of a Struggling Economy on the Auto Industry Essay1430 Words   |  6 PagesIntroduction When the â€Å"Sub-Prime Mortgage Crisis† began in 2008, it triggered a global recession. Demand decreased across all industries, but the auto industry was hit especially hard due to vehicles being big ticket items. Even prior to the recession, the high prices of raw materials and fuels, as well as increased pressure from the government and consumers for automakers to build â€Å"greener† cars meant trouble for automakers. Within the industry, Canadian and the American auto makers were hurt the most. TheRead MoreShould The Government Have Bailed Out The Automotive Industry?1326 Words   |  6 PagesBrian Edmiston Mrs. Gagnon US Government 04/03/2015 Should the US Government Have Bailed out the Automotive Industry? On December 18th 2014 the auto industry bailout ordeal came to a close when the US Treasury Department sold the last of its stock in General Motors, for 19 billion dollars, in the end recouping about 39 billion out of 50.1 billion that was pumped into the Big Three automakers at the tail end of 2008 by the Bush and Obama administrations (Muller). The big question that comes upRead MoreHow Chrysler handled the 2007 recession in regard to their international strategies941 Words   |  4 PagesDue to the devastating economic crisis in 2008, American automobile industry suffered a disastrous period. In particular, the sales volume of Chrysler went down 30.3% compared to 2007. Without doubt, Chrysler had the most terrible performance among the three giant native auto companies in North American while its market share declined to about 10%. Meanwhile, the cost of Chrysler was related high, which led Chrysler has less competitiveness. In addition, Chrysler also had heavy liabilities, and i tRead MoreThe Toyota Motor Corporation Company Essay1222 Words   |  5 PagesThe Toyota Motor Corporation was once a division of the Toyoda Automatic Loom Works, Ltd. In 1926, Sakichi Toyoda founded the Toyota Industries Corporation known at the time as the Toyoda Automatic Loom Works, Ltd. Toyoda started with his first invention in 1890 which was the Toyoda Wooden Hand Loom which was, then, modified to make the Toyoda Power Loom in 1896. The invention of the power loom leads to his next invention which was the Circular Loom invented in 1906. Toyoda finally invents the Toyoda