Taxpayer Cost of Federal Financing of Auto Manufacturers Compared with Likely Costs of Bankruptcies in Industry

The purpose of this report is to provide policymakers and taxpayers with an objective, independent assessment of the relative cost of two possible scenarios: a bridge loan or other financing provision by the US government to the “Detroit 3” automakers, or a near-term bankruptcy by one or more of the automakers. While there are other policy issues that the auto industry and Congress should consider, the relative taxpayer cost of these two scenarios is critical.

This report is part of our Auto Crisis Advisory Service.

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