Automotive Bailout:

The three major firms in the United States automotive industry asked the government for a bailout worth $34 billion in December 2008 in order to avoid bankruptcy. These companies asked for the bailout from government because their demise could result in approximately 3 million layoffs within a year, a measure that could plunge the American economy further into economic recession. These three major firms in the American automotive industry are General Motors, Ford, and Chrysler. The bailout of General Motors and Chrysler was to provide operating cash for both companies and to avail auto loans for car buyers. However, many people in the United States opposed the automotive bailout arguing that these American automakers brought the near-bankruptcy on themselves. They argued that these automakers inflicted the bankruptcy on themselves through failure to retool an energy-efficient era, which resulted in lessening their competitiveness in the global market.

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