section_path: Presidency (1977–1981)/Domestic policy/Chrysler bailout
section_name: Chrysler bailout
paragraph_text: Chrysler bailout
  
  In the late 1970s, the Chrysler Cooperation —one of the " Big Three " automakers in the U.S.—faced near-certain bankruptcy as it projected a loss of $1 billion. Carter proposed that the company forgo salary increases and bonuses, saying that it might be done "without decimating the company or putting it on its knees", but the company had already frozen wage increases and bonuses months before, to no avail. In 1979, Congress began working on a bailout plan for Chrysler, led by Congressman James J. Blanchard. Carter assembled a team that included Vice President Mondale and Assistant Domestic Policy Adviser David Rubenstein to secure a $1.5 billion loan guarantee.
  
  In December, Congress passed the Chrysler Corporation Loan Guarantee Act of 1979 to bail Chrysler out with $3.5 billion (equivalent to $ 10.9 billion in 2023) in aid. The bill turned over $162 million in stock to Chrysler's workers, eliminated around $125 million in wage increases, and gave Chrysler $500 million in bank loans. Carter, who had initially opposed the bailout of corporations, signed it into law in January, saying that the bill saved thousands of jobs. The bailout was successful at the time, but Chrysler would eventually file for bankruptcy during the 2008 financial crisis.
  
  In the late 1970s, the Chrysler Cooperation —one of the " Big Three " automakers in the U.S.—faced near-certain bankruptcy as it projected a loss of $1 billion. Carter proposed that the company forgo salary increases and bonuses, saying that it might be done "without decimating the company or putting it on its knees", but the company had already frozen wage increases and bonuses months before, to no avail. In 1979, Congress began working on a bailout plan for Chrysler, led by Congressman James J. Blanchard. Carter assembled a team that included Vice President Mondale and Assistant Domestic Policy Adviser David Rubenstein to secure a $1.5 billion loan guarantee.
  
  In December, Congress passed the Chrysler Corporation Loan Guarantee Act of 1979 to bail Chrysler out with $3.5 billion (equivalent to $ 10.9 billion in 2023) in aid. The bill turned over $162 million in stock to Chrysler's workers, eliminated around $125 million in wage increases, and gave Chrysler $500 million in bank loans. Carter, who had initially opposed the bailout of corporations, signed it into law in January, saying that the bill saved thousands of jobs. The bailout was successful at the time, but Chrysler would eventually file for bankruptcy during the 2008 financial crisis.