Detroit housing rises from the ashes. "What was old is trying to be saved and renovated, and when they're done with it, the finished product is very trendy.
Accessibility to technology, transportation, arts, sports," Tarala said. "It does tend to be expensive because the land cost in the city has really recovered significantly. The initial investment was much higher than it was. How corruption deepened Detroit's crisis. DETROIT -- Former Detroit Mayor Kwame Kilpatrick was a spender, a schemer and a liar.
And taxpayers paid for it, by the millions. Over seven years, Kilpatrick's public corruption schemes, lavish lifestyle and ethical missteps cost taxpayers at least $20 million, a tab the financially strapped city was in no position to pick up but did anyway — usually without knowing. On Thursday, Kilpatrick will be sentenced for 24 corruption convictions. As he heads to federal prison for what could be decades, one important question lingers: How much did his extortion, kickback and bribery rackets contribute to the city's financial crisis and its filing in July for the largest municipal bankruptcy in the nation's history?
"Kilpatrick is not the main culprit of the city's historic bankruptcy, which is the result of larger social and economic forces at work for decade," federal prosecutors said in court documents. Bailout. Federal government lost $9.26B on auto rescue. Washington — The U.S. government lost $9.26 billion on the auto industry rescue, according to the final accounting released late Monday.
In its report, the U.S. Treasury Department said it recovered $70.43 billion of the $79.69 billion it gave to General Motors Corp., Chrysler LLC and auto lending arms Ally Financial Inc. and Chrysler Financial. The Unpopular, Successful Auto Bailout. (Flickr/Chrysler-Group) In late 2008, Chrysler and General Motors told America that they were in danger of folding.
George W. Bush agreed to a temporary bailout, but handed the auto companies' long-term future over to his successor, President-Elect Barack Obama. Obama then shepherded a comprehensive bailout of the two companies that allowed them to stay in business but imposed numerous conditions that, it was hoped, would secure their viability and allow the companies to eventually return to profitability. How Outsourcing Jobs Affects the US Economy.
Definition: Job outsourcing is when U.S. companies hire foreign workers instead of Americans.
Businessinsider. Detroit files for bankruptcy - Jul. 18, 2013. The bankruptcy was filed by Emergency Manager Kevyn Orr and approved by Michigan Gov.
Rick Snyder. Snyder said the financial condition of the city left him no choice. "Now's our opportunity to stop 60 years of decline," Snyder said at a Friday news conference with Orr. "How long had this been going on and people were kicking the can down the road and not doing something?
We're doing something. " Snyder has said that 38% of the city's budget is being spent on "legacy costs," such as pensions and debt service. "Does anybody think it's OK to have 40-year-old trees growing through the roofs of dilapidated houses," Orr said. Related: 16 things that are wrong in Detroit. Automotive Fuel Economy: How Far Can We Go? The automobile industry is characterized by long lead times for major component systems, such as engines and transmissions, and complete vehicles.
To determine the design and features of a vehicle or of critical components, a two- to four-year lead time is necessary for ordering specialized equipment and preparing manufacturing plants. Vehicle assembly facilities require a lead time of two to four years. (The required lead time is affected by the extent of change in the vehicle and the production process.) Three to four years are required to prepare for an all new engine or drivetrain (U.S. Department of Transportation, 1991). Some American automotive companies seemed slow to convert to new models and contemporary engine designs during the 1980s. The industry relies largely on internally generated funds to provide the bulk of capital for investment. GM offshore outsourcing U.S. jobs. Glad you supported GM getting U.S. taxpayer dollars?
Want to see GM survive, prattling on how America needs an auto industry? Instead we get this, GM plans to shift overseas production: The Packard Plant Project - History. In 1903, at the behest of a group of investors, the Packard Automotive Company moved its headquarters from Warren, Ohio to Detroit.
Then-president of the company, Henry Joy, looking for a fresh take on factory buildings, enlisted local architect Albert Kahn to design the company's complex. The first nine buildings on the site were built between 1903-1905. These followed the typical mill-style factory buildings of the time, with cramped rooms, wooden columns, floors, and ceilings, and very little natural light. Due to the large amount of wood used in construction, these buildings were fire hazards. Auto Industry Bailout (GM, Chrysler, Ford) The U.S. government bailout of the auto industry lasted from January 2009 to December 2013.
The Big Three automakers approached Congress in November 2008. They warned that, without the bailout, GM and Chrysler faced bankruptcy and the loss of one million jobs. Ford didn't need the funds, since it had already cut costs. But it asked to be included so it wouldn't suffer by competing with subsidized companies. Anatomy of Detroit’s Decline - Interactive Feature. Mayor Coleman A. Young of Detroit at an event in 1980.
Richard Sheinwald/Associated Press The financial crisis facing Detroit was decades in the making, caused in part by a trail of missteps, suspected corruption and inaction. Here is a sampling of some city leaders who trimmed too little, too late and, rather than tackling problems head on, hoped that deep-rooted structural problems would turn out to be cyclical downturns. When a Coin Drops in Asia, Jobs Disappear in Detroit. Last year, free trade hammered Michigan’s 11th Congressional District, located between Detroit and Flint, killing manufacturing, costing jobs and crushing dreams.
It’s not over, either. Another 11th District company, ViSalus Inc., told the state it would eliminate 87 jobs as of last Saturday, slicing its staff by nearly 400 since 2013 when ViSalus was the second-largest direct sales firm in the state. Detroit population rank is lowest since 1850. Unemployment Rates for the 50 Largest Cities. As Companies Seek Tax Deals, Governments Pay High Price. Fred R. Conrad/The New York Times General Motors pushed hard for tax breaks in Ypsilanti Township, Mich.
Some $200 million later, this is what remains. The rise and fall of General Motors. Sign Up for Our free email newsletters How long has GM been around?