Barack Obama ยท Democratic ยท Major Decision

Auto Industry Rescue (GM and Chrysler)

Mar 30, 2009
Barack ObamaTrade & EconomyMajor DecisionFirst term (2009โ€“13)
๐Ÿ“œ View the official record on federalregister.gov

What happened

Restructured and bailed out General Motors and Chrysler through managed bankruptcies, extending TARP funds to save the U.S. auto sector.

How it happened

Executive action via the Treasury's auto task force in 2009.

Documented impact

Positive impactsubstantiated
Credited with saving the U.S. auto industry and ~1 million jobs.
GM and Chrysler survived and returned to profitability; most of the funds were eventually recovered, with a partial taxpayer loss.
Negative impactcontested
Criticized as a government overreach and bailout of mismanagement.
Opponents objected to picking winners and to losses borne by some bondholders; Treasury recorded a net loss on the auto portion.

Sources

Every claim above links to its source. Primary record and cited reporting: