skip to content
Auto industry : a framework for considering federal financial assistance : testimony before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate Preview this item
ClosePreview this item
Checking...

Auto industry : a framework for considering federal financial assistance : testimony before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate

Author: Gene L Dodaro; United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs.; United States. Government Accountability Office.
Publisher: [Washington, D.C.] : U.S. Govt. Accountability Office, [2008]
Series: Testimony, GAO-09-242T.
Edition/Format:   eBook : Document : National government publication : English
Summary:
The current economic downturn has brought significant financial stress to the auto manufacturing industry. Recent deteriorating financial, real estate, and labor markets have reduced consumer confidence and available credit, and automobile purchases have declined. While auto manufacturers broadly have experienced declining sales in 2008 as the economy has worsened, sales of the "Big 3" (General Motors, Chrysler, and  Read more...
Rating:

(not yet rated) 0 with reviews - Be the first.

Subjects
More like this

Find a copy online

Links to this item

Find a copy in the library

&AllPage.SpinnerRetrieving; Finding libraries that hold this item...

Details

Material Type: Document, Government publication, National government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Gene L Dodaro; United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs.; United States. Government Accountability Office.
OCLC Number: 310983089
Notes: Title from title screen (viewed Feb. 26, 2009).
"For release ... December 4, 2008."
Description: 10 pages : digital, PDF file.
Details: System requirements: Adobe Acrobat Reader.; Mode of access: Internet from GAO web site. Address as of 2/26/2009: http://www.gao.gov/new.items/d09242t.pdf; current access available via PURL.
Series Title: Testimony, GAO-09-242T.
Other Titles: Framework for considering federal financial assistance
Responsibility: statement of Gene L. Dodaro.

Abstract:

The current economic downturn has brought significant financial stress to the auto manufacturing industry. Recent deteriorating financial, real estate, and labor markets have reduced consumer confidence and available credit, and automobile purchases have declined. While auto manufacturers broadly have experienced declining sales in 2008 as the economy has worsened, sales of the "Big 3" (General Motors, Chrysler, and Ford) have also declined relative to those of some other auto manufacturers in recent years because higher gasoline prices have particularly hurt sales of sport utility vehicles. In addition to causing potential job losses at auto manufacturers, failure of the domestic auto industry would likely adversely affect other sectors. Officials from the Big 3 have requested, and Congress is considering, immediate federal financial assistance. This testimony discusses principles that can serve as a framework for considering the desirability, nature, scope, and conditions of federal financial assistance. Should Congress decide to provide financial assistance, we also discuss how these principles could be applied in these circumstances. The testimony is based on GAO's extensive body of work on previous federal rescue efforts that dates back to the 1970s. From our previous work on federal financial assistance to large firms and municipalities, we have identified three fundamental principles that can serve as a framework for considering future assistance. These principles are (1) identifying and defining the problem, (2) determining the national interests and setting clear goals and objectives that address the problem, and (3) protecting the government's interests. First, problems confronting the industry must be clearly defined--separating out those that require an immediate response from those structural challenges that will take more time to resolve. Second, Congress should determine whether the national interest will be best served through a legislative solution, or whether market forces and established legal procedures, such as bankruptcy, should be allowed to take their course. Should Congress decide that federal financial assistance is warranted, it is important that Congress establish clear objectives and goals for this assistance. Third, given the significant financial risk the federal government may assume, the structure Congress sets up to administer any assistance should provide for appropriate mechanisms, such as concessions by all parties, controls over management, compensation for risk, and a strong independent board, to protect taxpayers from excessive or unnecessary risks. These principles could help the Congress in deciding whether to offer financial assistance to the domestic auto manufacturers. If Congress determines that a legislative solution is in the national interest, a two-pronged approach could be appropriate in these circumstances. Specifically, Congress could 1) authorize immediate, but temporary, financial assistance to the auto manufacturing industry and 2) concurrently establish a board to approve, disburse, and oversee the use of these initial funds and provide any additional federal funds and continued oversight. This board could also oversee any structural reforms of the companies. Among other responsibilities, Congress could give the board authority to establish and implement eligibility criteria for potential borrowers and to implement procedures and controls in order to protect the government's interests.

Reviews

User-contributed reviews
Retrieving GoodReads reviews...
Retrieving DOGObooks reviews...

Tags

Be the first.
Confirm this request

You may have already requested this item. Please select Ok if you would like to proceed with this request anyway.

Linked Data


Primary Entity

<http://www.worldcat.org/oclc/310983089> # Auto industry : a framework for considering federal financial assistance : testimony before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate
    a schema:MediaObject, schema:Book, schema:CreativeWork ;
    library:oclcnum "310983089" ;
    library:placeOfPublication <http://id.loc.gov/vocabulary/countries/dcu> ;
    library:placeOfPublication <http://experiment.worldcat.org/entity/work/data/190188315#Place/washington_d_c> ; # Washington, D.C.
    rdfs:comment "Warning: This malformed URI has been treated as a string - 'http://purl.access.gpo.gov/GPO/LPS112264";'" ;
    schema:about <http://experiment.worldcat.org/entity/work/data/190188315#Topic/automobile_industry_and_trade_united_states_finance> ; # Automobile industry and trade--United States--Finance
    schema:about <http://id.loc.gov/authorities/subjects/sh2008104504> ; # Industrial policy--United States
    schema:about <http://id.worldcat.org/fast/1204155> ; # United States.
    schema:about <http://experiment.worldcat.org/entity/work/data/190188315#Topic/government_guaranty> ; # Government guaranty
    schema:about <http://dewey.info/class/1.52:GAO-09-242/> ;
    schema:about <http://id.worldcat.org/fast/822984> ; # Automobile industry and trade--Finance
    schema:about <http://id.loc.gov/authorities/subjects/sh2008105361> ; # Government lending--United States
    schema:about <http://experiment.worldcat.org/entity/work/data/190188315#Topic/automobile_industry> ; # Automobile industry
    schema:about <http://experiment.worldcat.org/entity/work/data/190188315#Topic/transportation_policy> ; # Transportation policy
    schema:about <http://experiment.worldcat.org/entity/work/data/190188315#Topic/economic_policy> ; # Economic policy
    schema:about <http://id.worldcat.org/fast/945388> ; # Government lending
    schema:about <http://id.worldcat.org/fast/971433> ; # Industrial policy
    schema:about <http://experiment.worldcat.org/entity/work/data/190188315#Topic/trade> ; # Trade
    schema:alternateName "Framework for considering federal financial assistance" ;
    schema:bookFormat schema:EBook ;
    schema:contributor <http://viaf.org/viaf/124152672> ; # United States. Government Accountability Office.
    schema:contributor <http://viaf.org/viaf/150104115> ; # United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs.
    schema:creator <http://viaf.org/viaf/33531400> ; # Gene L. Dodaro
    schema:datePublished "2008" ;
    schema:description "The current economic downturn has brought significant financial stress to the auto manufacturing industry. Recent deteriorating financial, real estate, and labor markets have reduced consumer confidence and available credit, and automobile purchases have declined. While auto manufacturers broadly have experienced declining sales in 2008 as the economy has worsened, sales of the "Big 3" (General Motors, Chrysler, and Ford) have also declined relative to those of some other auto manufacturers in recent years because higher gasoline prices have particularly hurt sales of sport utility vehicles. In addition to causing potential job losses at auto manufacturers, failure of the domestic auto industry would likely adversely affect other sectors. Officials from the Big 3 have requested, and Congress is considering, immediate federal financial assistance. This testimony discusses principles that can serve as a framework for considering the desirability, nature, scope, and conditions of federal financial assistance. Should Congress decide to provide financial assistance, we also discuss how these principles could be applied in these circumstances. The testimony is based on GAO's extensive body of work on previous federal rescue efforts that dates back to the 1970s. From our previous work on federal financial assistance to large firms and municipalities, we have identified three fundamental principles that can serve as a framework for considering future assistance. These principles are (1) identifying and defining the problem, (2) determining the national interests and setting clear goals and objectives that address the problem, and (3) protecting the government's interests. First, problems confronting the industry must be clearly defined--separating out those that require an immediate response from those structural challenges that will take more time to resolve. Second, Congress should determine whether the national interest will be best served through a legislative solution, or whether market forces and established legal procedures, such as bankruptcy, should be allowed to take their course. Should Congress decide that federal financial assistance is warranted, it is important that Congress establish clear objectives and goals for this assistance. Third, given the significant financial risk the federal government may assume, the structure Congress sets up to administer any assistance should provide for appropriate mechanisms, such as concessions by all parties, controls over management, compensation for risk, and a strong independent board, to protect taxpayers from excessive or unnecessary risks. These principles could help the Congress in deciding whether to offer financial assistance to the domestic auto manufacturers. If Congress determines that a legislative solution is in the national interest, a two-pronged approach could be appropriate in these circumstances. Specifically, Congress could 1) authorize immediate, but temporary, financial assistance to the auto manufacturing industry and 2) concurrently establish a board to approve, disburse, and oversee the use of these initial funds and provide any additional federal funds and continued oversight. This board could also oversee any structural reforms of the companies. Among other responsibilities, Congress could give the board authority to establish and implement eligibility criteria for potential borrowers and to implement procedures and controls in order to protect the government's interests."@en ;
    schema:exampleOfWork <http://worldcat.org/entity/work/id/190188315> ;
    schema:genre "Government publication"@en ;
    schema:genre "National government publication"@en ;
    schema:inLanguage "en" ;
    schema:isPartOf <http://experiment.worldcat.org/entity/work/data/190188315#Series/testimony> ; # Testimony ;
    schema:name "Auto industry : a framework for considering federal financial assistance : testimony before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate"@en ;
    schema:productID "310983089" ;
    schema:publication <http://www.worldcat.org/title/-/oclc/310983089#PublicationEvent/washington_d_c_u_s_govt_accountability_office_2008> ;
    schema:publisher <http://experiment.worldcat.org/entity/work/data/190188315#Agent/u_s_govt_accountability_office> ; # U.S. Govt. Accountability Office
    schema:url <http://ntl.bts.gov/lib/31000/31700/31752/d09247t.pdf> ;
    schema:url <http://purl.access.gpo.gov/GPO/LPS112264> ;
    schema:url <http://www.gao.gov/new.items/d09242t.pdf> ;
    schema:url "http://purl.access.gpo.gov/GPO/LPS112264";" ;
    wdrs:describedby <http://www.worldcat.org/title/-/oclc/310983089> ;
    .


Related Entities

<http://experiment.worldcat.org/entity/work/data/190188315#Agent/u_s_govt_accountability_office> # U.S. Govt. Accountability Office
    a bgn:Agent ;
    schema:name "U.S. Govt. Accountability Office" ;
    .

<http://experiment.worldcat.org/entity/work/data/190188315#Place/washington_d_c> # Washington, D.C.
    a schema:Place ;
    schema:name "Washington, D.C." ;
    .

<http://experiment.worldcat.org/entity/work/data/190188315#Series/testimony> # Testimony ;
    a bgn:PublicationSeries ;
    schema:hasPart <http://www.worldcat.org/oclc/310983089> ; # Auto industry : a framework for considering federal financial assistance : testimony before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate
    schema:name "Testimony ;" ;
    .

<http://experiment.worldcat.org/entity/work/data/190188315#Topic/automobile_industry> # Automobile industry
    a schema:Intangible ;
    schema:name "Automobile industry"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/190188315#Topic/automobile_industry_and_trade_united_states_finance> # Automobile industry and trade--United States--Finance
    a schema:Intangible ;
    schema:hasPart <http://id.loc.gov/authorities/subjects/sh2009114565> ;
    schema:name "Automobile industry and trade--United States--Finance"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/190188315#Topic/government_guaranty> # Government guaranty
    a schema:Intangible ;
    schema:name "Government guaranty"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/190188315#Topic/transportation_policy> # Transportation policy
    a schema:Intangible ;
    schema:name "Transportation policy"@en ;
    .

<http://id.loc.gov/authorities/subjects/sh2008104504> # Industrial policy--United States
    a schema:Intangible ;
    schema:name "Industrial policy--United States"@en ;
    .

<http://id.loc.gov/authorities/subjects/sh2008105361> # Government lending--United States
    a schema:Intangible ;
    schema:name "Government lending--United States"@en ;
    .

<http://id.worldcat.org/fast/1204155> # United States.
    a schema:Place ;
    schema:name "United States." ;
    .

<http://id.worldcat.org/fast/822984> # Automobile industry and trade--Finance
    a schema:Intangible ;
    schema:name "Automobile industry and trade--Finance"@en ;
    .

<http://id.worldcat.org/fast/945388> # Government lending
    a schema:Intangible ;
    schema:name "Government lending"@en ;
    .

<http://id.worldcat.org/fast/971433> # Industrial policy
    a schema:Intangible ;
    schema:name "Industrial policy"@en ;
    .

<http://viaf.org/viaf/124152672> # United States. Government Accountability Office.
    a schema:Organization ;
    schema:name "United States. Government Accountability Office." ;
    .

<http://viaf.org/viaf/150104115> # United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs.
    a schema:Organization ;
    schema:name "United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs." ;
    .

<http://viaf.org/viaf/33531400> # Gene L. Dodaro
    a schema:Person ;
    schema:familyName "Dodaro" ;
    schema:givenName "Gene L." ;
    schema:name "Gene L. Dodaro" ;
    .

<http://www.worldcat.org/title/-/oclc/310983089>
    a genont:InformationResource, genont:ContentTypeGenericResource ;
    schema:about <http://www.worldcat.org/oclc/310983089> ; # Auto industry : a framework for considering federal financial assistance : testimony before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate
    schema:dateModified "2018-09-19" ;
    void:inDataset <http://purl.oclc.org/dataset/WorldCat> ;
    .


Content-negotiable representations

Close Window

Please sign in to WorldCat 

Don't have an account? You can easily create a free account.