The Financial Crisis Of The U.s. Auto Industry

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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 “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 from
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