Labor Relations Commons^™

Saving America's Automobile Industry: The Bailouts Of 1979 And 2009, An Overview Of The Economic Conditions, Factors For Failure, Government Interventions And Public Reactions, Taylor A. Wall

CMC Senior Theses

This paper will discuss the bankruptcies experienced by U.S. automakers in both 1979 and 2009. The main factors which led the automakers into financial ruin was the uncontrolled power of labor unions, the severe financial impact of oil embargos, the aggressive imposition of federal regulations and the increasing dominance of Japanese imports. After discussing these important factors, the paper will describe the specifics of Chrysler’s bailout experience in 1979 with the positive public acceptance of the government loans, largely due to the character of Lee Iacocca. After delving into Chrysler, this paper will explain the specifics of the government’s bailout …