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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:1,601 Points:245,935 Joined:Sep 2012	Message Posted: Oct 23, 2012 7:18:31 AM Ignore teenitup Report Abuse And Obama was caught in another lie on this very subject last night.
BEGTWO Champion Author Maryland Posts:1,927 Points:720,615 Joined:Sep 2010	Message Posted: Oct 23, 2012 5:47:02 AM Ignore BEGTWO Report Abuse Yea Right!!!
DrCashFlow Champion Author Massachusetts Posts:7,054 Points:1,623,325 Joined:Jun 2008	Message Posted: Oct 23, 2012 1:58:32 AM Ignore DrCashFlow Report Abuse academic studies are rarely useful
kkimes Champion Author Illinois Posts:1,590 Points:1,502,915 Joined:Sep 2005	Message Posted: Oct 22, 2012 10:33:24 PM Ignore kkimes Report Abuse Wow, that sounds like a statement Willard might have made during his campaign somewhere.
Moparmizer Sophomore Author Iowa Posts:119 Points:34,480 Joined:Oct 2012	Message Posted: Oct 22, 2012 7:07:02 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:3,335 Points:1,239,425 Joined:Oct 2009	Message Posted: Oct 22, 2012 4:50:19 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:14,857 Points:1,438,095 Joined:Oct 2008	Message Posted: Oct 22, 2012 3:58:34 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:4,062 Points:793,250 Joined:Feb 2011	Message Posted: Oct 22, 2012 3:03:17 PM Ignore ExplorerWA Report Abuse The taxpayers would have done better without the bailout.
oilfreak All-Star Author Houston Posts:682 Points:36,560 Joined:Oct 2012	Message Posted: Oct 22, 2012 2:03:02 PM Ignore oilfreak Report Abuse Chrysler shouldnt have asked for a bailout to begin with.
BBopp Champion Author Dayton Posts:6,824 Points:1,935,430 Joined:Dec 2006	Message Posted: Oct 22, 2012 12:57:03 PM Ignore BBopp Report Abuse Well it's just a tad too late.
PathfinderSC Champion Author South Carolina Posts:9,501 Points:1,827,715 Joined:Mar 2008	Message Posted: Oct 22, 2012 11:54:39 AM Ignore PathfinderSC Report Abuse I agree ,
jeffbone Champion Author Virginia Posts:1,351 Points:397,910 Joined:Mar 2011	Message Posted: Oct 22, 2012 11:50:03 AM Ignore jeffbone Report Abuse The entire economy would have done better without the bailouts...
Buckeyee Champion Author Maine Posts:4,584 Points:895,755 Joined:May 2010	Message Posted: Oct 22, 2012 11:30:29 AM 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:47,190 Joined:Jun 2012	Message Posted: Oct 22, 2012 11:06:16 AM 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:2,576 Points:480,635 Joined:Dec 2010	Message Posted: Oct 22, 2012 10:08:13 AM 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:1,859 Points:697,640 Joined:May 2010	Message Posted: Oct 22, 2012 9:23:41 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:1,153 Points:455,765 Joined:Sep 2011	Message Posted: Oct 22, 2012 9:23:16 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:3,243 Points:979,165 Joined:Feb 2009	Message Posted: Oct 22, 2012 9:17:20 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:2,545 Points:601,610 Joined:Aug 2011	Message Posted: Oct 22, 2012 9:15:22 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 9:11:42 AM Ignore LostToo Report Abuse They all could have gotten along better without help from Oboma.
danreino Champion Author Twin Cities Posts:8,337 Points:1,537,705 Joined:Mar 2008	Message Posted: Oct 22, 2012 9:11:00 AM Ignore danreino Report Abuse Who woulda thunk it...prolly a group of 7 year olds ;(
Sapper08 Champion Author Indianapolis Posts:1,049 Points:317,275 Joined:Mar 2012	Message Posted: Oct 22, 2012 9:10:29 AM Ignore Sapper08 Report Abuse It's always better when the gov't. stays out of the private sector.
mightyace Champion Author Tennessee Posts:4,258 Points:842,160 Joined:Jan 2011	Message Posted: Oct 22, 2012 9:10:01 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:2,464 Points:1,703,575 Joined:Aug 2007	Message Posted: Oct 22, 2012 9:09:43 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:6,142 Points:2,140,435 Joined:Oct 2006	Message Posted: Oct 22, 2012 9:09:07 AM Ignore mickealo Report Abuse ya well so would have the taxpayers been better off
mnbeancounter Champion Author Minnesota Posts:4,706 Points:1,058,815 Joined:Oct 2009	Message Posted: Oct 22, 2012 9:04:30 AM Ignore mnbeancounter Report Abuse My business could use a bailout. Where do I apply at?
LongPlay Champion Author Albuquerque Posts:4,227 Points:1,236,275 Joined:May 2008	Message Posted: Oct 22, 2012 9:03:04 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:10,329 Points:2,644,745 Joined:Mar 2003	Message Posted: Oct 22, 2012 9:01:29 AM Ignore MightyDude Report Abuse just maybe ;)
seahawks Champion Author Washington Posts:3,212 Points:1,960,720 Joined:Sep 2005	Message Posted: Oct 22, 2012 9:01:04 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 9:00:37 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:2,350 Points:319,395 Joined:Jun 2012	Message Posted: Oct 22, 2012 9:00:30 AM Ignore CocoPaz Report Abuse Really??? Well, dah.
Zeke33 Champion Author New Hampshire Posts:5,561 Points:1,613,720 Joined:Sep 2005	Message Posted: Oct 22, 2012 9:00:26 AM Ignore Zeke33 Report Abuse The UAW is bleeding the American Auto Industry dry.
KrsnaDragon Champion Author Montreal Posts:2,387 Points:527,425 Joined:Nov 2011	Message Posted: Oct 22, 2012 9:00:19 AM Ignore KrsnaDragon Report Abuse Interesting article.
trekmanKY Champion Author Kentucky Posts:1,080 Points:355,210 Joined:Mar 2012	Message Posted: Oct 22, 2012 8:59:51 AM Ignore trekmanKY Report Abuse I see!
dougtaylor1 Champion Author Phoenix Posts:1,746 Points:444,000 Joined:Jun 2011	Message Posted: Oct 22, 2012 8:59:07 AM Ignore dougtaylor1 Report Abuse Lee Iacoca supports Romney. Does that tell you anything?
rjd1608 Champion Author Toledo Posts:5,341 Points:1,926,005 Joined:Aug 2003	Message Posted: Oct 22, 2012 8:58:55 AM Ignore rjd1608 Report Abuse hindsight is 20/20
OnEmptyMO Champion Author St. Louis Posts:4,974 Points:1,484,675 Joined:Mar 2008	Message Posted: Oct 22, 2012 8:57:55 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:31,955 Points:2,164,070 Joined:Apr 2005	Message Posted: Oct 22, 2012 8:57:11 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:1,227 Points:386,215 Joined:Jun 2010	Message Posted: Oct 22, 2012 8:56:22 AM Ignore WGW1 Report Abuse there are problems with false economies
Kato51 Champion Author Atlanta Posts:7,245 Points:2,160,765 Joined:Jul 2005	Message Posted: Oct 22, 2012 8:54:55 AM Ignore Kato51 Report Abuse I agree. I like their cars.
DOMFL Veteran Author Miami Posts:316 Points:85,460 Joined:Apr 2012	Message Posted: Oct 22, 2012 8:53:25 AM Ignore DOMFL Report Abuse ok
megadiesellv Champion Author Atlanta Posts:1,474 Points:503,585 Joined:Sep 2011	Message Posted: Oct 22, 2012 8:52:49 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:4,732 Points:989,510 Joined:Jul 2010	Message Posted: Oct 22, 2012 8:52:25 AM Ignore gamalerin Report Abuse After 4 years, I don't think so.
dougtaylor1 Champion Author Phoenix Posts:1,746 Points:444,000 Joined:Jun 2011	Message Posted: Oct 22, 2012 8:52:04 AM Ignore dougtaylor1 Report Abuse Yep. That is what Romney said.
CheckitoutGuy Champion Author San Diego Posts:1,311 Points:769,590 Joined:Mar 2008	Message Posted: Oct 22, 2012 8:51:18 AM Ignore CheckitoutGuy Report Abuse Yep! ageed 4 years ago
GoLancer4 Champion Author Ohio Posts:1,787 Points:438,515 Joined:Sep 2011	Message Posted: Oct 22, 2012 8:50:58 AM Ignore GoLancer4 Report Abuse uh huh
hank1326 Champion Author Los Angeles Posts:8,898 Points:1,730,035 Joined:Jun 2008	Message Posted: Oct 22, 2012 8:50:22 AM Ignore hank1326 Report Abuse Can we have our tax money back?!
doggod Champion Author Anchorage Posts:2,828 Points:737,360 Joined:May 2009	Message Posted: Oct 22, 2012 8:50:07 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:9,879 Points:3,125,955 Joined:Apr 2003	Message Posted: Oct 22, 2012 8:49:21 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:7,229 Points:1,437,015 Joined:Nov 2007	Message Posted: Oct 22, 2012 8:49:08 AM Ignore NanookAK Report Abuse Doesn't matter to me.