Cookies are Not Accepted - New York Times “The auto industry supports one of every 10 jobs in the United States,” Gov. Jennifer M. Granholm of Michigan wrote in a CNN.com plea for a bailout of Detroit’s Big Three. The day before, she told “The Early Show” on CBS that “this industry supports one in 10 jobs in the country,” adding, “If this industry is allowed to fail, there will be a ripple effect throughout the nation.” That’s a scary figure.
Detroit bus drivers speak out on bankruptcy, crisis in city bus system “What you have now is not a true government, it is a dictatorship” By our reporters 21 December 2013 For four years, Detroit residents have seen the already grossly inadequate public bus system gutted by cuts in public funding. Bus service in the city is now in daily acute crisis. Many workers have lost their jobs or faced disciplinary measures because buses on major routes are chronically late or so full they cannot pick up passengers. At least one third of Detroit residents do not have cars and must rely on buses to go to work or school, shop for groceries and get to medical appointments. The city is currently under the control of Emergency Manager Kevyn Orr, who has been appointed and given full governing powers in order to slash jobs and rip up services to pay off bondholders. Detroit Mayor Dave Bing slashed the budget of the DDOT by $12.6 million and shut down numerous routes last year. In late October drivers called in sick or took vacation days, closing the bus system for a day.
The rise and fall of Detroit: A timeline Sign Up for Our free email newsletters On Thursday, Detroit made history — and not in a good way. July 24, 1701Antoine de La Mothe Cadillac establishes a French settlement, Fort Ponchartrain du Détroit (the strait), along with 100 French soldiers and an equal number of Algonquins. 1760Britain wins the city from the French. 1796U.S. forces capture Detroit from the British. Feb. 1, 1802Detroit becomes a chartered city, covering about 20 acres. 1827Detroit adopts its forward-looking city motto: Speramus Meliora; Resurget Cineribus (We hope for better days; it shall rise from the ashes). 1850Bernhard Stroh opens Stroh Brewery Company. The Stroh Brewery Company, circa 1864. June 4, 1896Henry Ford test drives his first automobile on the streets of Detroit. 1898Ford establishes the Detroit Automobile Co., producing all of two cars before the company fails three years later. 1899Ransom E. Nov. 3, 1901Ford opens his second car company, Henry Ford Co. The crumbling Packard plant, in October 2009.
Auto workers, bus riders denounce Detroit bankruptcy ruling “The Democrats conspired with the Republicans on this” By Zac Corrigan 17 November 2014 Over the weekend, Detroit workers continued to voice their opposition to the Detroit bankruptcy plan approved by Judge Stephen Rhodes on November 7. Shift change at Warren stamping plant Vaughn Oliver, a lower-paid second-tier worker at Warren Stamping, told the WSWS that he had previously worked at Awrey Bakery, which filed for bankruptcy in 2013. Vaughn Oliver “What they did in Detroit was corrupt,” he added. “It’s crazy,” said Eric Hade, another auto worker. WSWS reporters also spoke to bus riders at State Fair Transit Center and Rosa Parks Transit Center, two major bus transfer stations at opposite ends of Detroit. Bob Grier Bob Grier, a retired medical assistant now taking computer classes to try to get a job to supplement his income, said, “They used the bankruptcy court to override the constitution and cut pensions. “This city used to be great,” he continued. Kimberly McConnel
A new Detroit: Can the Motor City come back? ONE of this week's big American news stories was the release of new Census data for the state of Michigan, which revealed that the city of Detroit underwent a stunning population decline between 2000 and 2010. Detroit shrank by 25% during the decade, and its population fell to its lowest level since 1910—before the era of Big Three dominance. The city seems to be locked in a death spiral. But could there be a light on the horizon? Auto industry executives are trying to make Silicon Valley engineers feel at home in Detroit. Indeed, tech employment has been rising quickly in Detroit. Well, there are a few points to make. I think it's a little disconcerting that so much of the hiring seems to be driven by carmakers. This is one place where Detroit is at a significant disadvantage thanks to the condition of its broader economy. On the other hand, Detroit's ridiculously low costs are an advantage: Sure, Detroit salaries are 40% lower than Silicon Valley pay.
Detroit Rising: Life after bankruptcy One year after a federal judge approves Detroit's bankruptcy exit plan, progress has been made while looming challenges remain, especially city pensions The City of Detroit has more than enough cash to pay its daily bills. Thousands of busted streetlights have been replaced. City retirees still receive pension checks, and valuable paintings remain ensconced in the gilded halls of the Detroit Institute of Arts. That's the good news. Among the greatest concerns: a multibillion-dollar pension bill that starts coming due in less than a decade. The city is on the hook to make a balloon pension payment estimated at more than $100 million in 2024 alone. So far, the early returns for the investments since the bankruptcy are falling short. It was officially known as a plan of adjustment. Some, especially retirees, remain embittered by pension cutbacks. "I think the early indicators exceeded our expectations," former Detroit emergency manager Kevyn Orr said in an interview late last month. Peter J.
Detroit at the White House: Trump meets with Big Three auto CEOs - Jan. 23, 2017 In opening remarks to the press, Trump claimed he was already "bringing manufacturing back to the United States big league." He didn't talk about his threats to impose tariffs and border taxes on goods brought in from Mexico. Instead, he talked about incentives that would get automakers to build here, such as reduced corporate tax rates. The CEOs stayed at the meeting about an hour. Ford CEO Mark Fields praised the new administration as they left. "As an industry we're excited about working together with the president and his administration on tax policies, on regulation and on trade to really create a renaissance in American manufacturing," he said. He specifically praised Trump's decision to pull out of the TPP trade deal, which Fields said did not do enough to address currency manipulation, a major concern for U.S. automakers. But the auto industry is concerned about Trump's threat to impose a 35% tax on imports from Mexico to the United States.
How Detroit went broke: The answers may surprise you — and don't blame Coleman Young Originally published Sept. 15, 2013 Detroit is broke, but it didn’t have to be. An in-depth Free Press analysis of the city’s financial history back to the 1950s shows that its elected officials and others charged with managing its finances repeatedly failed — or refused — to make the tough economic and political decisions that might have saved the city from financial ruin. Instead, amid a huge exodus of residents, plummeting tax revenues and skyrocketing home abandonment, Detroit’s leaders engaged in a billion-dollar borrowing binge, created new taxes and failed to cut expenses when they needed to. Simultaneously, they gifted workers and retirees with generous bonuses. And under pressure from unions and, sometimes, arbitrators, they failed to cut health care benefits — saddling the city with staggering costs that today threaten the safety and quality of life of people who live here. The State of Michigan also bears some blame. Decades of mismanagement added to Detroit’s fiscal woes.
Bailout debate: How the Big 3 came apart and how to fix them - Nov. 17, 2008 NEW YORK (CNNMoney.com) -- Why is the U.S. auto industry in such a precarious position? That question - and answers to it - will animate the debate this week over whether Washington should extend a lifeline to the Big Three. (For more, read Auto bailout: Showdown in Washington.) There are extreme answers at both ends. Either way, it's easy to see why so many people are troubled at the prospect of rewarding the automakers' management and workers with billions of taxpayer dollars. But the problems that have put General Motors (GM, Fortune 500) on the precipice of a bankruptcy filing, and left Ford Motor (F, Fortune 500) and Chrysler not far behind, are complicated. Why they are in this mess Years of market share losses by the Big Three are a major part of the problem. Another blow came earlier this year in the form of record high gas prices, which cut deeply into demand for pickups and SUVs. For years, pickups and SUVs brought strong sales and high profit margins.