# Auto Industry Rescue

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

Barack Obama · Trade & Economy · Major Decision · Mar 30, 2009
Official record: https://en.wikipedia.org/wiki/Automotive_industry_crisis_of_2008%E2%80%932010

## 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 / substantiated] 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 / contested] 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

- [Automotive industry crisis (Wikipedia)](https://en.wikipedia.org/wiki/Automotive_industry_crisis_of_2008%E2%80%932010)

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