IIRC this is their 3rd bailout.
I suppose that having given *so* much money to various banks to save the asses of those who handed mortages to Mr & Mrs Otis Q Crackhead the relevant Chrysler played the sympathy card to their local Senators & Con-gresspersons.
The fact they did'nt spend the last shedload of bailout cash well enough to need *another* one (or two?).
Seriously had Chrysler gone to the wall what would have happened?
Some bits get closed for good. Some get sold to other manufacturers. Some *might* have set up as a new independant car mfg.
Workers for all of the above (provided they don't re-locate the plant) get re-hired and most of their suppliers (who no doubt are mostly as internationally uncompetitve as the companies they supported) would stay in bussiness.
A certain proportion of those workers would be near retirement age anyway (IIRC US auto workers pension arrangements are quite good).
$12.5Bn. If their were 10 000 workers involved that $1.25m *each*. If a 10x that are involved that's still $150k
American governments like to say they have a free enterprise economy. That is *unless* your big enough to have lobbyists to beg for your survival on your behalf. Then your a "Strategic asset" which "cannot be allowed to fail."
Some of Chryslers e-car designs looked good and there is interest in the concept and the vehicles themselves. Enough to make a business? We'll never know.
The deal's been done and the US taxpayers certainly have been.