Article

Bankruptcies and Bailouts: The Continuing Impact of the Financial Crisis on the Franchise Auto Dealer Industry

21 U. PA. J. Bus. L. 288

2018

An intricately intertwined network of corporate manufacturers, independently owned dealers, suppliers, and workers, the U.S. auto industry has been a staple of the American economy for the better part of the last century. However, in the wake of globalization, ever-increasing foreign competition, and the Financial Crisis, only governmental intervention has allowed the U.S. auto industry to remain viable over the last decade. But did the governmental intervention achieve its intended purpose? And, in the long run, is governmental intervention the only answer to shield a fledgling U.S. auto industry from the ebbs and flows of a global economy? Perhaps the source of the U.S. auto industry’s viability issues does not lie within the macro-level circumstances that surround it—but, rather, in the franchise business model it utilizes.

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