In desperation, the Chrysler Corporation on September 7, 1979 petitioned the United States government for US$1 billion in loan guarantees to avoid bankruptcy. At the same time, Lee Iacocca, a former Ford executive, was brought in to take the position of CEO, and proved a capable public spokesman for the firm. A somewhat reluctant Congress authorized the guarantees, prodded by Chrysler workers and dealers in every congressional district who feared the loss of their livelihoods. With such help and a few innovative cars (such as the K-car platform), especially the invention of the minivan concept, a market where Chrysler brands are still important, Chrysler avoided bankruptcy and slowly fought its way back up. By the early 1980s, the loans were being repaid at a brisk pace and new models based on the K-car platform were selling well.
This is bad for the government or GM or taxpayers.... how?
Just think for a SECOND if Toyota or Honda were in deep financial trouble that Japanese government wouldn't help them out. Heck Japanese government keeps the value of the Yen low just to keep Sony, Toyota, and Honda happy.
Airbus is taxpayer subsidised while Boeing is laying off workers.... You think the europeans don't want to knife GM also?