Auto Industry Bailout and Restructuring (2008–2009)
The federal government lent General Motors and Chrysler roughly $80 billion through the Troubled Asset Relief Program during the financial crisis, forcing debt restructuring, plant closures and union concessions. GM emerged from bankruptcy in 2009 with the government holding a 60% stake; Chrysler exited under Fiat management.
Both automakers survived bankruptcy and repaid most of the loans by 2014; the government ultimately recovered most of its investment.
Establishing a precedent for the federal government actively intervening in private manufacturing, a template critics and supporters still debate.
Like the bailout, LIFT coordinates government and private capital around manufacturing, but it uses market demand rather than rescue funds, and operates at the state rather than federal level.