Analysis of the impact of the 2007-2008 financial crisis on the automotive industry in the United States

This bachelor thesis examines the impact of the 2007-2008 financial crisis on the automotive industry in the United States. The thesis aims to shed light on the effects of this crisis on consumer preferences, vehicle supply and the labour market. The first research question is whether financial assistance from the federal government was necessary for the two largest U.S. manufacturers, General Motors and Chrysler, which went bankrupt after the financial crisis, and the return of that assistance. The second research question is whether the financial crisis was the sole reason for their bankruptcy, and why they did not overcome the crisis without assistance like Ford. In the theoretical part, the history of the "Big Three" from the 1980s to the financial crisis is examined in more detail. The bankruptcy and reorganization of General Motors and Chrysler are also examined. The last chapter then analyses the origins of the financial crisis and its causes. In the practical part, consumer preferences, the labour market and the financial condition of the "Big Three" are analysed. The market shares of the five largest vehicle sellers in the US market are compared and the financial condition of the 'Big Three' is also compared. The financial crisis had significant negative effects on consumer preferences, the labour market and the financial health of the 'Big Three'. Financial assistance from the federal government was necessary because otherwise significant structural unemployment would have resulted. General Motors and Chrysler, unlike Ford, had faced significant problems since the 1980s, and the solutions to these problems were ineffective. The financial aid was returned to the US government largely in the form of the sale of General Motors shares and the repayment of debt by Chrysler, with the remainder raised in taxes.