In 1980 the government - the taxpayers - bailed out the Chrysler Corporation.....

[suston96]

1.5 billion dollars - big money back then. Strict conditions set by Congress. Payback - with interest.

That is what Chrysler did. And the government got 350 million in interest payments from Chrysler.

http://uspolitics.about.com/od/economy/a/chryslerBailout.htm

On 7 January 1980, Carter signed the legislation (Public Law 86-185):

This is legislation which ... shows in vivid terms that when our Nation does have a genuine pressing economic problem, that my own administration and the Congress can act expeditiously...

The loan guarantees will not be made by the Federal Government unless the other contributions or concessions are given to Chrysler by its own owners, stockholders, administrators, employees, dealers, suppliers, foreign and domestic financial institutions, and by State and local governments. It's got to be a package deal, and everyone understands this. And because they have already probed for the best possible interrelationship to form a team to protect Chrysler's viability, I believe there's a good chance that this package will be put together.

Under the leadership of Lee Iacocca, Chrysler doubled its corporate average miles-per-gallon (CAFE). In 1978, Chrysler introduced the first domestically produced front-wheel drive small cars: the Dodge Omni and Plymouth Horizon.

In 1983, Chrysler paid off the loans that had been guaranteed by US taxpayers. The Treasury was also $350 million richer.

[NNN0LHI]

1. Chrysler paid the loans back early if I remember correctly

[liberal N proud]

2. Yes they did and many conservatives were pissed off

They thought that Chrysler was getting off from paying some of the interest by paying off early and were pissed off by it.

[napi21]

3. Yes they did! Those guarantees also were only issued after Iococca

presented his long term plan and convinced Congress that it was a valid workable plan that would likely succeed!

[louis-t]

6. Iacocca saved Chrysler with - the K car!

Only in America.

[napi21]

8. Yes he did, and IMO it's that kind of bold moves American car

makers must do again in order to save themselves! If you remember, Lee was considered by some to be a radical because he made the decision to change the entire Chrysler car fleet to FWD. No car mfg. had ever done anything like that before. They always tested a new idea on "one model" for several years. Detroit has always been known for it's "very slow to change" attitudes. I say, if THAT attitude doesn't change, and change NOW, they won't have to worry about it because they won't exist!

[HamdenRice]

4. Clinton's bailout of the Mexican peso made $500 million

It all depends on who is in the White House. I was listening to a somewhat liberal talk radio show on WNYC, and the guest said that if the Secy Treasury is Phil Gramm, then the government won't make a dime and will lose vast amounts to the private sector. If the Secy Treasury is appointed by Obama, it could make money -- perhaps hundreds of billions, given the scale of the bailout.

Let's see, they made $350 million on a bailout of $1.5 billion -- that's a 23% rate of return.

Apply that to $1 trillion, and the feds could earn $230 billion -- off the backs of the banks, no less -- enough to make a major down payment for universal health care.

It all depends on who and how.

[Fumesucker]

5. Take a look at Chrysler's model lineup and their bottom line now..

How's that bailout worked out in the long run?

What lasting lessons did Chrysler management learn?

[suston96]

7. These bailouts are not for the "long run"......

They are for the short run. The government - the taxpayers, made 350 million dollars on that very short term bailout in 1983.

[Fumesucker]

9. My point being that if we bail them out now, there is absolutely no guarantee they will improve..

Chrysler is close to going Tango Uniform once again.

A trillion dollars for a short term bail out seems just a trifle shortsighted to me.