Date of Completion

Spring 5-1-2026

Thesis Advisor(s)

Liping Qiu

Honors Major

Finance

Disciplines

Finance and Financial Management

Abstract

The 2007-2009 financial crisis displayed how many industries lacked sustainability during times of market volatility. It revealed structural vulnerabilities, especially in the global automotive industry. This case study and analysis intend to examine why certain major automakers were able to survive the crisis without bankruptcy, such as Ford, Toyota, Honda, and BMW AG, while other competitors required company-wide restructuring and government assistance. This research investigates the extent and timing of government support. It also investigates the influence of these loans on firm rebound rates and whether the companies that were provided with aid were prioritized based on size or weakness. This case study also targets how internal financial characteristics can determine the resilience level of companies in times of crisis, such as liquidity levels, capital structure, and reliance on debt or equity for firm financing. This research investigates the most fool-proof tools to examine companies, and which financial characteristics are important to consider from an investor-standpoint during a recession. This paper also explores the impact of international diversification on stability. The findings aim to contribute to the literature on corporate crisis management by identifying “red flags” through financial and structural attributes early on.

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