(Source: " Key Facts ," U.S. Department of the Treasury.) Company Invested Sold For Profit/Loss Date Bailout Ended GM $51.0 billion $39.7 billion -$11.3 billion Dec. 9, 2013 GMAC (Ally) $17.2 billion $19.6 billion +$2.4 billion Dec. 18, 2014 Chrysler $12.5 billion $11.2 billion -$1.3 billion May 2011 TOTAL $80.7 billion $70.5 billion - $10.2 billion
Success of Government Intervention • Government lost 10.2 Billion in invested • GM and Chrysler filed bankruptcy but did not cease production of brand • Automotive Industry Finance Program created in January 2009 • Energy efficient vehicle development fast-tracked
Should Government Intervention Continue • Treasury Department ended auto industry bailout on December 18, 2014
Reference Arnadeo, K. (2017). Auto Industry Bailout (GM, Chrysler, Ford) . Retrieved from Goolsbee, A. D., & Krueger, A. B. (2015). A Retrospective Look at Rescuing and Restructuring General Motors and Chrysler. Journal Of Economic Perspectives , 29 (2), 3-24. doi: House oversight and government reform subcommittee on regulatory affairs, stimulus oversight, and government spending hearing. (2011). (). Lanham: Federal Information & News Dispatch, Inc. Retrieved from McConnell, C., Brue, S., & Flynn, S. (2015). E conomics Principals, Problems, and Policies (20th ed.). Retrieved from The University of Phoenix eBook Collection database.
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- Government, Market failure, Externality