It doesn’t matter, the fact is the Chrysler bailout set the precedent that the government was now expected to save companies, and decide the winners and losers in the marketplace.
At the time, Chrysler was a critical defense contractor. They were our only manufacturer of main battle tanks, among other things. The ‘bailout’ was in loan guarantees so the taxpayer didn’t have to pay anything out, Chrysler presented a viable recovery plan - and most important, as part of the bailout agreement, Chrysler had to sell off all of their defense industries so that if the plan failed the country wouldn’t lose a critical defense supply.