Topic > Globalization of the Automobile Case Study - 1158

The Japanese also responded to the quota by selling larger cars and improving build quality. Overall, the price of Japanese cars in the United States increased and the rent was captured by Japanese companies. US losses totaled approximately $3.2 billion in 1984, consisting of transfers to Japan rather than efficiency losses. The 2008 financial crisis hit the automotive industry hard, causing the closure of many manufacturing plants. GM and Chrysler both entered bankruptcy, and Congress decided to provide government aid to the failing companies. They received help through the Troubled Asset Relief Program and Ford was helped through the Term Asset-Backed Securities Loan Facility. In 2013, the government sold the last of its shares in GM. The companies survived and got back on their feet, even though Chrysler was taken over by Fiat in