Detroit Automakers: Affected by City Bankruptcy?

USA Today

Detroit automak­ers say they sup­port the city of Detroit, but they do not antic­i­pate any impact to their dai­ly oper­a­tions or busi­ness out­look from the city’s insol­ven­cy.

Get more details on the rela­tion­ship between the city and the automak­ers.

The city of Detroit’s bank­rupt­cy fil­ing appar­ent­ly won’t affect the Detroit Three automak­ers who, along with Motown soul music, made the city famous and at one time, pros­per­ous.

Gen­er­al Motors, the biggest Detroit automak­er, the only one with its head­quar­ters lit­er­al­ly in Detroit, and a com­pa­ny not that far removed from the sting of its own bank­rupt­cy fil­ing in 2009, says, “We do not antic­i­pate any impact to our dai­ly oper­a­tions or busi­ness out­look” from the city’s insol­ven­cy.

Chrysler Group says it “believes in the city of Detroit and its peo­ple. 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.”

Chrysler has a full-fledged auto-assem­bly fac­to­ry employ­ing 4,663 and four oth­er indus­tri­al sites, and it has moved offices for some oper­a­tions to Chrysler House (for­mer­ly the Dime Build­ing), all with­in the Detroit city lim­its. Chrysler head­quar­ters is in sub­ur­ban Auburn Hills, 30 miles away.

Ford Motor, which was found­ed in near­by Dear­born and nev­er has been based with­in the city of Detroit, says, “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.”

Ford did not go through bank­rupt­cy reor­ga­ni­za­tion because it mort­gaged the entire com­pa­ny in 2006 to raise mon­ey that kept it going through the reces­sion.

For GM, the fil­ing may mark a “clean start” for the city.

“A healthy auto indus­try will play a part in Detroit’s come­back sto­ry and GM is doing its part,” the com­pa­ny said in a state­ment.



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