Detroit Automakers: City's Bankruptcy Won't Affect Our Operations

Renaissance_Center

Today, Detroit became the largest municipality in U.S. history to file for bankruptcy. The move came as the city faces $18 billion in debt. The Detroit News reports the city reached a deal with some creditors that gives Detroit $11 million a month in casino tax revenue to run essential city services during the bankruptcy proceedings. Those services are skeletal: Dial 911 in Detroit and the city’s police are likely to respond in 58 minutes on average, the newspaper said.

Detroit's three automakers — GM, Chrysler and Ford — say the city’s bankruptcy won't affect their operations.

"Chrysler Group believes in the city of Detroit and its people," the automaker said in a statement. "We not only continue to invest in the city and its residents by adding to our presence in Detroit, we also are committed to playing a positive role in its revitalization. We do not anticipate any effect on our day-to-day operations."

Ford, whose headquarters are in the Detroit suburb of Dearborn, followed: "We believe a strong Detroit is critical for a strong Michigan and our industry. The city has a difficult job ahead, and we are optimistic that governmental leaders will be successful in strengthening the community."

GM, whose Renaissance Center headquarters mark a major piece of Detroit's skyline, did not immediately respond for comment. But the automaker told the Detroit News that it didn't expect the city's filing to affect operations at its headquarters or assembly plants.

"GM is proud to call Detroit home and today’s bankruptcy declaration is a day that we and others hoped would not come," GM told the newspaper. "We believe, however, that today also can mark a clean start for the city.”

Detroit's woes are well-documented. Between 2000 and 2010, the city's population declined 25% — from 951,270 to 713,777, according to U.S. Census data. In 2012, Detroit approved an advisory board partly appointed by the state of Michigan to oversee its overburdened financial contracts. In March 2013, Michigan officials appointed Chrysler bankruptcy lawyer Kevyn Orr as the city's emergency operations manager. The same month, former Detroit mayor Kwame Kilpatrick was found guilty of racketeering, extortion and scores of other charges — two dozen in all.

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Comments 

And they are still optimistic!
This is how the market economy works huh.
Do your best and you will succeed (well some with a little government help!). If you don't, well it's on you!

Good Luck Detroit. Ford and Chrysler are with you though!

Kj

Have to say this: the Feds need to export financial aid to Detroit instead of exporting aid to foreign countries. America comes first.

Xsolara

Nothing will change in Detroit until you change the liberal politics. AND that will never happen.. Look who they keep electing

Frank

60+ years of Democrat rule. They get everything they deserve but won't be getting a single penny of my money.

Highdesertcat

There's nothing to worry about. Obama will bail out Detroit, like he did GM and Chrysler.

Bush set the precedence in 2008 and bailouts are now the accepted policy for America, no matter who is in the White House.

American tax payers just have to grin and bear it. They'll be paying for the shortfalls, the pensions and the debts when we nationalize Detroit like we did GM and Chrysler.

Too bad we can't give away Detroit to Italy, like we did Chrysler.

Well, maybe we can after all if Sergio is made the mayor.

Card13

Highdesertcat

The federal government has no need to bail out Detroit. Two of the 3 major automakers going bankrupt would have almost certainly caused the entire American economy to crumple. Detroit being bankrupt doesn't effect many people outside of Detroit, or even many in the city.

Highdesertcat

Card13, time will tell......

Troy S.

Maybe the automakers could bail out Detroit.....you know...their home.... Where's all the money they claim to be making going? Not America....

Highdesertcat

Troy, the money is going to the UAW.

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