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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

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teenitup Champion Author Houston Posts:1,837 Points:274,935 Joined:Sep 2012	Message Posted: Oct 23, 2012 9:18:31 AM Ignore teenitup Report Abuse And Obama was caught in another lie on this very subject last night.
BEGTWO Champion Author Maryland Posts:2,072 Points:749,890 Joined:Sep 2010	Message Posted: Oct 23, 2012 7:47:02 AM Ignore BEGTWO Report Abuse Yea Right!!!
DrCashFlow Champion Author Massachusetts Posts:7,196 Points:1,652,875 Joined:Jun 2008	Message Posted: Oct 23, 2012 3:58:32 AM Ignore DrCashFlow Report Abuse academic studies are rarely useful
kkimes Champion Author Illinois Posts:1,665 Points:1,530,035 Joined:Sep 2005	Message Posted: Oct 23, 2012 12:33:24 AM Ignore kkimes Report Abuse Wow, that sounds like a statement Willard might have made during his campaign somewhere.
Moparmizer Sophomore Author Iowa Posts:139 Points:42,630 Joined:Oct 2012	Message Posted: Oct 22, 2012 9:07:02 PM Ignore Moparmizer Report Abuse 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.
DanMtz Champion Author Oakland Posts:3,486 Points:1,269,075 Joined:Oct 2009	Message Posted: Oct 22, 2012 6:50:19 PM Ignore DanMtz Report Abuse I'm sure this will be interesting reading for economists. Politicians, however, probably won't read or believe the study.
sillywagon Champion Author New York Posts:15,105 Points:1,467,845 Joined:Oct 2008	Message Posted: Oct 22, 2012 5:58:34 PM Ignore sillywagon Report Abuse 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.
ExplorerWA Champion Author Washington Posts:4,230 Points:823,000 Joined:Feb 2011	Message Posted: Oct 22, 2012 5:03:17 PM Ignore ExplorerWA Report Abuse The taxpayers would have done better without the bailout.
oilfreak All-Star Author Houston Posts:707 Points:38,185 Joined:Oct 2012	Message Posted: Oct 22, 2012 4:03:02 PM Ignore oilfreak Report Abuse Chrysler shouldnt have asked for a bailout to begin with.
BBopp Champion Author Dayton Posts:6,939 Points:1,956,705 Joined:Dec 2006	Message Posted: Oct 22, 2012 2:57:03 PM Ignore BBopp Report Abuse Well it's just a tad too late.
PathfinderSC Champion Author South Carolina Posts:9,652 Points:1,857,365 Joined:Mar 2008	Message Posted: Oct 22, 2012 1:54:39 PM Ignore PathfinderSC Report Abuse I agree ,
jeffbone Champion Author Virginia Posts:1,403 Points:413,875 Joined:Mar 2011	Message Posted: Oct 22, 2012 1:50:03 PM Ignore jeffbone Report Abuse The entire economy would have done better without the bailouts...
Buckeyee Champion Author Maine Posts:4,760 Points:923,125 Joined:May 2010	Message Posted: Oct 22, 2012 1:30:29 PM Ignore Buckeyee Report Abuse 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.
nsdp Champion Author San Antonio Posts:1,117 Points:47,765 Joined:Jun 2012	Message Posted: Oct 22, 2012 1:06:16 PM Ignore nsdp Report Abuse 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.
crep1291 Champion Author Ottawa Posts:2,636 Points:486,070 Joined:Dec 2010	Message Posted: Oct 22, 2012 12:08:13 PM Ignore crep1291 Report Abuse 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.
Tekkersmom57 Champion Author Syracuse Posts:2,009 Points:726,940 Joined:May 2010	Message Posted: Oct 22, 2012 11:23:41 AM Ignore Tekkersmom57 Report Abuse Great statement, mightyace! To me it ends up being six of this or half dozen of the other.
73amx Champion Author Allentown Posts:1,302 Points:485,495 Joined:Sep 2011	Message Posted: Oct 22, 2012 11:23:16 AM Ignore 73amx Report Abuse I don't know if Chrysler would be better off, but I could sure use 12.5B
07skydriver Champion Author Ohio Posts:3,369 Points:1,008,330 Joined:Feb 2009	Message Posted: Oct 22, 2012 11:17:20 AM Ignore 07skydriver Report Abuse 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.
Double_Golden Champion Author San Francisco Posts:2,690 Points:631,135 Joined:Aug 2011	Message Posted: Oct 22, 2012 11:15:22 AM Ignore Double_Golden Report Abuse 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...
LostToo Champion Author Illinois Posts:4,392 Points:975,315 Joined:May 2009	Message Posted: Oct 22, 2012 11:11:42 AM Ignore LostToo Report Abuse They all could have gotten along better without help from Oboma.
danreino Champion Author Twin Cities Posts:8,469 Points:1,563,535 Joined:Mar 2008	Message Posted: Oct 22, 2012 11:11:00 AM Ignore danreino Report Abuse Who woulda thunk it...prolly a group of 7 year olds ;(
Sapper08 Champion Author Indianapolis Posts:1,198 Points:347,005 Joined:Mar 2012	Message Posted: Oct 22, 2012 11:10:29 AM Ignore Sapper08 Report Abuse It's always better when the gov't. stays out of the private sector.
mightyace Champion Author Tennessee Posts:4,399 Points:871,555 Joined:Jan 2011	Message Posted: Oct 22, 2012 11:10:01 AM Ignore mightyace Report Abuse 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.
fatboy97 Champion Author Twin Cities Posts:2,609 Points:1,732,950 Joined:Aug 2007	Message Posted: Oct 22, 2012 11:09:43 AM Ignore fatboy97 Report Abuse The Obama administration made a mistake... really... NO KIDDING!!! Now we need a change in the White House in November!!!
mickealo Champion Author Spokane Posts:6,292 Points:2,170,185 Joined:Oct 2006	Message Posted: Oct 22, 2012 11:09:07 AM Ignore mickealo Report Abuse ya well so would have the taxpayers been better off
mnbeancounter Champion Author Minnesota Posts:4,956 Points:1,088,565 Joined:Oct 2009	Message Posted: Oct 22, 2012 11:04:30 AM Ignore mnbeancounter Report Abuse My business could use a bailout. Where do I apply at?
LongPlay Champion Author Albuquerque Posts:4,376 Points:1,265,925 Joined:May 2008	Message Posted: Oct 22, 2012 11:03:04 AM Ignore LongPlay Report Abuse 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.
MightyDude Champion Author Minnesota Posts:10,486 Points:2,674,495 Joined:Mar 2003	Message Posted: Oct 22, 2012 11:01:29 AM Ignore MightyDude Report Abuse just maybe ;)
seahawks Champion Author Washington Posts:3,321 Points:1,983,300 Joined:Sep 2005	Message Posted: Oct 22, 2012 11:01:04 AM Ignore seahawks Report Abuse interesting article!!!
LoadToad Champion Author San Diego Posts:1,364 Points:1,298,045 Joined:Sep 2005	Message Posted: Oct 22, 2012 11:00:37 AM Ignore LoadToad Report Abuse Obomer bailed out the BANKS and the AUTO COMPANIES, I wonder who he will bail out if he is reelected, the TAXPAYERS, hardly.
CocoPaz Champion Author Santa Barbara Posts:2,512 Points:349,145 Joined:Jun 2012	Message Posted: Oct 22, 2012 11:00:30 AM Ignore CocoPaz Report Abuse Really??? Well, dah.
Zeke33 Champion Author New Hampshire Posts:5,654 Points:1,634,145 Joined:Sep 2005	Message Posted: Oct 22, 2012 11:00:26 AM Ignore Zeke33 Report Abuse The UAW is bleeding the American Auto Industry dry.
KrsnaDragon Champion Author Montreal Posts:2,542 Points:557,275 Joined:Nov 2011	Message Posted: Oct 22, 2012 11:00:19 AM Ignore KrsnaDragon Report Abuse Interesting article.
trekmanKY Champion Author Kentucky Posts:1,125 Points:364,185 Joined:Mar 2012	Message Posted: Oct 22, 2012 10:59:51 AM Ignore trekmanKY Report Abuse I see!
dougtaylor1 Champion Author Phoenix Posts:1,781 Points:457,150 Joined:Jun 2011	Message Posted: Oct 22, 2012 10:59:07 AM Ignore dougtaylor1 Report Abuse Lee Iacoca supports Romney. Does that tell you anything?
rjd1608 Champion Author Toledo Posts:5,491 Points:1,955,755 Joined:Aug 2003	Message Posted: Oct 22, 2012 10:58:55 AM Ignore rjd1608 Report Abuse hindsight is 20/20
OnEmptyMO Champion Author St. Louis Posts:5,090 Points:1,513,745 Joined:Mar 2008	Message Posted: Oct 22, 2012 10:57:55 AM Ignore OnEmptyMO Report Abuse With thinking like this, it's no wonder we were in such back shape.
LuckyD43 Champion Author Long Island Posts:32,450 Points:2,193,820 Joined:Apr 2005	Message Posted: Oct 22, 2012 10:57:11 AM Ignore LuckyD43 Report Abuse 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]
WGW1 Champion Author British Columbia Posts:1,372 Points:414,990 Joined:Jun 2010	Message Posted: Oct 22, 2012 10:56:22 AM Ignore WGW1 Report Abuse there are problems with false economies
Kato51 Champion Author Atlanta Posts:7,394 Points:2,190,495 Joined:Jul 2005	Message Posted: Oct 22, 2012 10:54:55 AM Ignore Kato51 Report Abuse I agree. I like their cars.
DOMFL Veteran Author Miami Posts:316 Points:86,160 Joined:Apr 2012	Message Posted: Oct 22, 2012 10:53:25 AM Ignore DOMFL Report Abuse ok
megadiesellv Champion Author Atlanta Posts:1,474 Points:503,585 Joined:Sep 2011	Message Posted: Oct 22, 2012 10:52:49 AM Ignore megadiesellv Report Abuse Chrysler puts out some great cars, better quality then the other 2, so hopefully they won't go under.
gamalerin Champion Author Tampa Posts:4,872 Points:1,018,060 Joined:Jul 2010	Message Posted: Oct 22, 2012 10:52:25 AM Ignore gamalerin Report Abuse After 4 years, I don't think so.
dougtaylor1 Champion Author Phoenix Posts:1,781 Points:457,150 Joined:Jun 2011	Message Posted: Oct 22, 2012 10:52:04 AM Ignore dougtaylor1 Report Abuse Yep. That is what Romney said.
CheckitoutGuy Champion Author San Diego Posts:1,311 Points:772,890 Joined:Mar 2008	Message Posted: Oct 22, 2012 10:51:18 AM Ignore CheckitoutGuy Report Abuse Yep! ageed 4 years ago
GoLancer4 Champion Author Ohio Posts:1,812 Points:453,540 Joined:Sep 2011	Message Posted: Oct 22, 2012 10:50:58 AM Ignore GoLancer4 Report Abuse uh huh
hank1326 Champion Author Los Angeles Posts:9,040 Points:1,759,320 Joined:Jun 2008	Message Posted: Oct 22, 2012 10:50:22 AM Ignore hank1326 Report Abuse Can we have our tax money back?!
doggod Champion Author Anchorage Posts:2,978 Points:767,110 Joined:May 2009	Message Posted: Oct 22, 2012 10:50:07 AM Ignore doggod Report Abuse 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.
Cheepo Champion Author Tampa Posts:9,984 Points:3,146,930 Joined:Apr 2003	Message Posted: Oct 22, 2012 10:49:21 AM Ignore Cheepo Report Abuse I do not want to say i told you so, there, i said it again!!!!!!!!!!!
NanookAK Champion Author Anchorage Posts:7,407 Points:1,466,765 Joined:Nov 2007	Message Posted: Oct 22, 2012 10:49:08 AM Ignore NanookAK Report Abuse Doesn't matter to me.