JSRoman
Premium
join:2005-03-10
Callahan, FL
| reply to SteveCon
Re: Bailout?
Chrysler and ?. The previous poster made it seemed like the entire american auto industry was bailed out by government.
Bailout or loan?
"In desperation, the Chrysler Corporation on September 7, 1979 petitioned the United States government for US$1 billion in loan guarantees to avoid bankruptcy. At the same time, Lee Iacocca, a former Ford executive, was brought in to take the position of CEO, and proved a capable public spokesman for the firm. A somewhat reluctant Congress passed the "Chrysler Corporation Loan Guarantee Act of 1979" (Public Law 96-185) on December 20, 1979 (signed into law by President Jimmy Carter on January 7, 1980), prodded by Chrysler workers and dealers in every congressional district who feared the loss of their livelihoods. With such help and a few innovative cars (such as the K-car platform), especially the invention of the minivan concept, a market where Chrysler brands are still important, Chrysler avoided bankruptcy and slowly fought its way back. By the early 1980s, the loans were being repaid at a brisk pace and new models based on the K-car platform were selling well."
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"Give me your tired, your poor,Your huddled masses yearning to breathe free,The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!"
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We are already bailing out most of them anyway and a lot more with ERISA or the Employee Retirement Income Security Act. The government (meaning us} is responsilble for their pension plans.