Why the City of Detroit is bankrupt, but the Big Three are thriving: Most of the Big Three’s main operations remain outside city limits. Chrysler’s suburban headquarters, where 10,000 people work, is in Auburn Hills, about 30 miles from the city proper. Ford is based in nearby Dearborn and hasn’t manufactured cars inside the city since it was cranking out Model Ts in the 1910s. That’s why the U.S. automakers can be thriving — earning $13.5 billion last year amid booming car sales, according to Bloomberg — while the city has been drowning in $18.5 billion in debt and finally declared bankruptcy this week. Ever since GM and Chrysler received a bailout from the federal government in 2009, the automakers have been expanding at a healthy clip. Michigan has added more than 35,000 auto jobs, up 34 percent since its nadir. GM has invested more than $1.5 billion in new production facilities around North America. But few of those jobs are going to the city of Detroit.
Posted on: Mon, 29 Jul 2013 23:40:46 +0000
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