What role did regional policy play in addressing the US auto industry crisis?

Thomas Klier and James Rubenstein

International Journal of Automotive Technology and Management, 2011, vol. 11, issue 2, 189-204

Abstract: One of the first challenges of the newly inaugurated Obama Administration in 2009 was the parlous state of the Detroit 3 carmakers (Chrysler Group, Ford Motor Company, and General Motors Company). Without government intervention, Chrysler and GM faced the strong possibility of having to close their operations and to liquidate their assets. The Obama Administration's publicly stated justification for rescuing Chrysler and GM was twofold: (1) short-term stabilisation of the national economy, (2) long-term strengthening of US manufacturing. Regional policy was not publicly stated as an important goal, but this paper concludes that one result of the rescue has been a tacit implementation of a regional industrial policy in the USA, though not an explicitly adopted strategy.

Keywords: US auto industry; automobile industry; Detroit Big 3 carmakers; regional policy; automotive manufacturing; industry restructuring; Chrysler Group; Ford Motor Company; General Motors Company; industrial policy; government intervention; USA; United States. (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.inderscience.com/link.php?id=39544 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijatma:v:11:y:2011:i:2:p:189-204

Access Statistics for this article

More articles in International Journal of Automotive Technology and Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().