Anderson Economic Group Work

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

The purpose of this report was 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 were other policy issues that the auto industry and Congress had to consider, the relative taxpayer cost of these two scenarios was critical.

The findings from this report were included in the submissions to Congress by General Motors and Chrysler. The report was also cited by the Congressional Research Service and The Center For Automotive Research.

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