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Chrysler Might Have Done Better Without Bailout, Study Says

Forbes -- An academic study of Chrysler’s performance since it received a $12.5 billion bailout in 2009 shows the automaker likely would have performed better without the government’s help — even if that meant its facilities were sold off to different companies.

The study by economist Brian Kelleher Richter and colleagues Adam Fremeth and Guy L.F. Holburn is hardly likely to settle the debate over whether the Obama administration should have poured billions of dollars into the auto industry, which just happens to be concentrated in the key presidential election states of Michigan and Ohio. But it does suggest that the bailout came at a cost to Chrysler, in terms of diminished reputation with customers, higher executive turnover, and conflict between the company’s managers and their government...


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Submitted Oct 22, 2012 By: Mudsprings
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Chrysler Might Have Done Better Without Bailout, Study Says Back to Topics
REPLIES (newest first) Post a Reply
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teenitup
Champion Author Houston

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Message Posted: Oct 23, 2012 8:18:31 AM

And Obama was caught in another lie on this very subject last night.
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BEGTWO
Champion Author Maryland

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Message Posted: Oct 23, 2012 6:47:02 AM

Yea Right!!!
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DrCashFlow
Champion Author Massachusetts

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Message Posted: Oct 23, 2012 2:58:32 AM

academic studies are rarely useful
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kkimes
Champion Author Illinois

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Message Posted: Oct 22, 2012 11:33:24 PM

Wow, that sounds like a statement Willard might have made during his campaign somewhere.
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Moparmizer
Sophomore Author Iowa

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Message Posted: Oct 22, 2012 8:07:02 PM

What? Government throwing money at a problem wasn't the best idea? Good thing they added bureaucracy and micromanagement to make the situation better. So glad Steve Rattner was there to decide what dealers to close.
At least Chrysler has repaid their loans. Sergio has it rolling in the right direction.
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DanMtz
Champion Author Oakland

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Message Posted: Oct 22, 2012 5:50:19 PM

I'm sure this will be interesting reading for economists. Politicians, however, probably won't read or believe the study.
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sillywagon
Champion Author New York

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Message Posted: Oct 22, 2012 4:58:34 PM

There were two bad things that came from the Government bailout. Government micromanagement, and wasted taxpayer dollars. The only good thing is that Fiat now owns Chrysler. Sergio Marchionne will turn Chrysler around and make both Fiat and Chrysler profitable. Sergio is the best thing to happen to Chrysler since Lee Iacocca was CEO.

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ExplorerWA
Champion Author Washington

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Message Posted: Oct 22, 2012 4:03:17 PM

The taxpayers would have done better without the bailout.
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oilfreak
All-Star Author Houston

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Message Posted: Oct 22, 2012 3:03:02 PM

Chrysler shouldnt have asked for a bailout to begin with.
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BBopp
Champion Author Dayton

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Message Posted: Oct 22, 2012 1:57:03 PM

Well it's just a tad too late.
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PathfinderSC
Champion Author South Carolina

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Message Posted: Oct 22, 2012 12:54:39 PM

I agree ,
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jeffbone
Champion Author Virginia

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Message Posted: Oct 22, 2012 12:50:03 PM

The entire economy would have done better without the bailouts...
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Buckeyee
Champion Author Maine

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Message Posted: Oct 22, 2012 12:30:29 PM

Our tax dollars ended up in the unions and Italians pockets. How to buy an election with tax payer money, what a novel and " legal " idea.
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nsdp
Champion Author San Antonio

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Message Posted: Oct 22, 2012 12:06:16 PM

Anybody bother to look at the credentials. He is one of Rick (OPPS!) Perry's new hires at UT. Best comparison is to the NFL replacement refs. A rookie replacement prof.
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crep1291
Champion Author Ottawa

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Message Posted: Oct 22, 2012 11:08:13 AM

The government couldn't bail GM out without extending their aid to other car makers. Otherwise they would have been accused of picking winners and losers.
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Tekkersmom57
Champion Author Syracuse

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Message Posted: Oct 22, 2012 10:23:41 AM

Great statement, mightyace! To me it ends up being six of this or half dozen of the other.
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73amx
Champion Author Allentown

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Message Posted: Oct 22, 2012 10:23:16 AM

I don't know if Chrysler would be better off, but I could sure use 12.5B
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07skydriver
Champion Author Ohio

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Message Posted: Oct 22, 2012 10:17:20 AM

Crysler is doing about a good as it's ever going to do unless they get away from the same worn out designs they are known for.
Evade, avoid, Dodge.
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Double_Golden
Champion Author San Francisco

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Message Posted: Oct 22, 2012 10:15:22 AM

who know what happened if Chrysler didn't took the 12.5 billions bailout back in 2009, of course you know now with the study on hand...
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LostToo
Champion Author Illinois

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Message Posted: Oct 22, 2012 10:11:42 AM

They all could have gotten along better without help from Oboma.
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danreino
Champion Author Twin Cities

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Message Posted: Oct 22, 2012 10:11:00 AM

Who woulda thunk it...prolly a group of 7 year olds ;(
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Sapper08
Champion Author Indianapolis

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Message Posted: Oct 22, 2012 10:10:29 AM

It's always better when the gov't. stays out of the private sector.
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mightyace
Champion Author Tennessee

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Message Posted: Oct 22, 2012 10:10:01 AM

No way to know for sure if the scenario in the article could have played out.

But, it is a a powerful argument against future government intervention.
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fatboy97
Champion Author Twin Cities

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Message Posted: Oct 22, 2012 10:09:43 AM

The Obama administration made a mistake... really... NO KIDDING!!!

Now we need a change in the White House in November!!!
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mickealo
Champion Author Spokane

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Message Posted: Oct 22, 2012 10:09:07 AM

ya well so would have the taxpayers been better off
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mnbeancounter
Champion Author Minnesota

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Message Posted: Oct 22, 2012 10:04:30 AM

My business could use a bailout. Where do I apply at?
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LongPlay
Champion Author Albuquerque

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Message Posted: Oct 22, 2012 10:03:04 AM

Keep the government out of business or anything. Anything that the government touches, turns to dung! The bailout was a gift to unions, but both GM and Chrysler would have been better companies by just going through the courts.
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MightyDude
Champion Author Minnesota

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Message Posted: Oct 22, 2012 10:01:29 AM

just maybe ;)
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seahawks
Champion Author Washington

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Message Posted: Oct 22, 2012 10:01:04 AM

interesting article!!!
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LoadToad
Champion Author San Diego

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Message Posted: Oct 22, 2012 10:00:37 AM

Obomer bailed out the BANKS and the AUTO COMPANIES, I wonder who he will bail out if he is reelected, the TAXPAYERS, hardly.
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CocoPaz
Champion Author Santa Barbara

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Message Posted: Oct 22, 2012 10:00:30 AM

Really??? Well, dah.
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Zeke33
Champion Author New Hampshire

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Message Posted: Oct 22, 2012 10:00:26 AM

The UAW is bleeding the American Auto Industry dry.
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KrsnaDragon
Champion Author Montreal

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Message Posted: Oct 22, 2012 10:00:19 AM

Interesting article.
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trekmanKY
Champion Author Kentucky

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Message Posted: Oct 22, 2012 9:59:51 AM

I see!
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dougtaylor1
Champion Author Phoenix

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Message Posted: Oct 22, 2012 9:59:07 AM

Lee Iacoca supports Romney. Does that tell you anything?
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rjd1608
Champion Author Toledo

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Message Posted: Oct 22, 2012 9:58:55 AM

hindsight is 20/20
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OnEmptyMO
Champion Author St. Louis

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Message Posted: Oct 22, 2012 9:57:55 AM

With thinking like this, it's no wonder we were in such back shape.
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LuckyD43
Champion Author Long Island

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Message Posted: Oct 22, 2012 9:57:11 AM

This makes no sense whatsoever. If they hadn't gotten the bailout, they would have gone bankrupt and there would have been thousands of workers unemployed. How would that have been better? Besides, Chrysler's reputation with their customers was never that great to begin with. They used to build crap before the bailout. At least now they are building SLIGHTLY better quality cars and their reputaion is starting to improve a little. I, personally, still prefer Fords and always WILL.

[Edited by: LuckyD43 at 10/22/2012 11:57:57 AM EST]
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WGW1
Champion Author British Columbia

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Message Posted: Oct 22, 2012 9:56:22 AM

there are problems with false economies
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Kato51
Champion Author Atlanta

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Message Posted: Oct 22, 2012 9:54:55 AM

I agree. I like their cars.
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DOMFL
Veteran Author Miami

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Message Posted: Oct 22, 2012 9:53:25 AM

ok
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megadiesellv
Champion Author Atlanta

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Message Posted: Oct 22, 2012 9:52:49 AM

Chrysler puts out some great cars, better quality then the other 2, so hopefully they won't go under.
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gamalerin
Champion Author Tampa

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Message Posted: Oct 22, 2012 9:52:25 AM

After 4 years, I don't think so.
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dougtaylor1
Champion Author Phoenix

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Message Posted: Oct 22, 2012 9:52:04 AM

Yep. That is what Romney said.
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CheckitoutGuy
Champion Author San Diego

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Message Posted: Oct 22, 2012 9:51:18 AM

Yep! ageed 4 years ago
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GoLancer4
Champion Author Ohio

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Message Posted: Oct 22, 2012 9:50:58 AM

uh huh
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hank1326
Champion Author Los Angeles

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Message Posted: Oct 22, 2012 9:50:22 AM

Can we have our tax money back?!
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doggod
Champion Author Anchorage

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Message Posted: Oct 22, 2012 9:50:07 AM

This is not news to a lot of people. The ones who can do arithmetic and know what comes out of politicians' mouths, I mean. Which leaves out the ones who are now gushing about this latest Republican wannabe whose lies are right up there with the best of them.

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Cheepo
Champion Author Tampa

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Message Posted: Oct 22, 2012 9:49:21 AM

I do not want to say i told you so, there, i said it again!!!!!!!!!!!
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NanookAK
Champion Author Anchorage

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Message Posted: Oct 22, 2012 9:49:08 AM

Doesn't matter to me.
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