Claremont Colleges Scholarship @ Claremont CMC Senior Theses CMC Student Scholarship 2010 Saving America's Automobile Industry: The Bailouts of 1979 and 2009, An Overview of the Economic Conditions, Factors for Failure, Government Interventions and Public Reactions Taylor A. Wall Claremont McKenna College Recommended Citation Wall, Taylor A., "Saving America's Automobile Industry: The aiB louts of 1979 and 2009, An Overview of the Economic Conditions, Factors for Failure, Government Interventions and Public Reactions" (2010). CMC Senior Theses. Paper 43. http://scholarship.claremont.edu/cmc_theses/43 This Open Access Senior Thesis is brought to you by Scholarship@Claremont. It has been accepted for inclusion in this collection by an authorized administrator. For more information, please contact
[email protected]. CLAREMONT MCKENNA COLLEGE SAVING AMERICA’S AUTOMOBILE INDUSTRY THE BAILOUTS OF 1979 AND 2009 An Overview of the Economic Conditions, Factors for Failure, Government Interventions and Public Reactions SUBMITTED TO PROFESSOR BUSCH AND DEAN GREGORY HESS BY TAYLOR WALL FOR SENIOR THESIS FALL 2010 NOVEMBER 29, 2010 2 Table of Contents Section I- Introduction……………………………………………………………….………….. 5 Section II- Labor Unions ………………………………………………….……………………...8 Section III- Foreign Oil Control ………………………………………...………………………15 Section IV-Federal Regulations and Air Quality……………………...…………………………19 Section V- Japanese Imports………………………………………..……………………………25 Section VI- The Bailout of 1979………………………………………………..………………..32 Section VII- The Bailout of 2009…………………………………………………………..……42 Section VIII- Summary………………………………………………………………………..…58 Bibliography…………………….……………………………………………………………….65 3 Photo Credit: 1970 Chevrolet Chevelle, Taylor Wall, November 20, 2010. Photo Credit: 1970 Chevrolet Nova, Taylor Wall, November 20, 2010 4 Section I Introduction The turn of the key in the ignition, the roar of the V-8 engine, your hands gripping the steering wheel and feeling the control, power, and freedom of just you and the open road.