An article in the Wall Street Journal (September 15, 2012) describes a request by the CEO of Nissan, Carlos Ghosn, to the Japanese government to intervene to make the yen exchange rate more favorable to local production and encourage alternate fuel powered vehicles. Similarly, the CEO of Fiat, Sergio Marchionne, wants European governments to act in concert with automakers to reduce excess capacity. Under what conditions does it make sense to use the government to assist the auto industry supply chain ? Do governments and their desire to protect domestic employment warrant their management of regulations and coordination ? How should the possible worry of increased consumer prices with lower capacity be balanced with job growth due to a profitable industry in making such government level choices ?