Obama's Car Czar Has Echoes of Fed Terms on '79 Chrysler Bailout

By Colin Mathews November 19th, 2008

Email this page to your friend:

http://www.imcdb.org/vehicle_30793-Chrysler-LeBaron-Town-and-Country-1986.html?PHPSESSID=9ec4fa0a9d1bc27fe94ffe4e4ae4a555
Enlarge Photo

How did the federal government ensure that the public's money was well spent in the Chrysler bailout of 1979? Explains Sarah A. Webster of Automotive News, an oversight board was created to watch Chrysler carefully as it moved through tough times with government assistance. That board consisted of the chairman of the Federal Reserve, the U.S. comptroller general, and the secretaries of Treasury, Labor, and Transportation.

The board appointed a Chrysler staff of approximately 20 individuals tasked as liaisons between the government officials and Chrysler. They monitored and worked with Chrysler as it pushed through its problems, and reported back to the board so that all parties were satisfied with the progress and methods used.

While Congress was working to bail out Chrysler, Webster points out, many felt that strict conditions had to be imposed on the deal, while others were in favor of letting the company fail altogether (sentiments that echo attitudes toward Detroit's Big Three today). Congress responded by working hard to enact tough conditions taking everyone's concerns into account. But were the K-Car and the minivan enough? And just how did Chrysler end up back in the same mess 30 years later?--Colin Mathews

---

Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.