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Substantial federal assistance allowed GM and Chrysler to
restructure their costs and improve their financial condition.
Through federally-funded restructuring, GM and Chrysler reported
lowering production costs and capacities by closing or idling
factories, laying off employees, and reducing their debt and number
of vehicle brands and models. These changes enabled both companies
to report operating profits and reduce costs enough to be
profitable at much lower sales levels than ever before.
Nevertheless, to remain profitable, both companies must manage
challenges affecting both their costs, including debt levels, and
vehicle demand, such as launching products that are attractive to
consumers amid rising fuel prices. This book examines the role of
TARP assistance in the restructuring of the U.S. motor vehicle
industry with a focus on unwinding the government stake in GMAC and
Chrysler.
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