Dear Truck Trend,

G.R. Whale should be horse-whipped, tarred and feathered, and run out of town on a rail for perpetuating the lie about "a governmental bailout" of Chrysler in the 1980s (September/October 2008). The government did not bail out Chrysler. Banks and other financial institutions loaned Chrysler the money and the government guaranteed the loans--if Chrysler defaulted on the loans, the government would pay the loans off. Chrysler paid the loans off ahead of schedule and paid the government a few million dollars in fees for guaranteeing the loans. Look at it this way: A veteran buys a house with a V.A. loan. The V.A. doesn't loan the money; banks or other financial institutions do. The V.A. guarantees that if the buyer defaults on the loan, the V.A. will pay the bank the balance. The V.A. charges the buyer fees (points) for guaranteeing the loan. It's the same story with Chrysler.

Also, the biggest problem with the American auto industry is all the stupid pollution and mileage standards that are dictated by the government (and environmentalists). The government needs to butt out of the auto industry. Let the marketplace dictate how cars should be built. Just because the government tells Ford, Chrysler, and GM to build cars that get 50 mpg doesn't mean people will buy them, at least not enough to justify the R&D expense.

John Miller
Rolla, Missouri

Dear Reader,

Greg Whale responds: When Chrysler asked for a loan in 1979 and got a $1.5 billion loan in 1980, many reports labeled it a bailout. Chrysler paid it off early, and the government made approximately $660 million on its investment. History repeated itself as the Detroit three asked the government for $25 billion; even reports in automotive trade papers used the term "bailout" because nobody cared if you called it a loan, rescue, investment, or bailout; they just wanted financial aid. The government has tried to tar, feather, and run me out of town, without success. But they didn't give me a tax break, either.

- Truck Trend