Mexican Media Brands
Detroit Three Unlikely to Be Hurt by City’s Bankruptcy
Detroit is the birthplace of the American auto industry.
#economics
Share
Detroit is the birthplace of the American auto industry. But the Motor City's Chapter 9 bankruptcy filing late last week is not expected to have much impact on Chrysler, Ford or General Motors.
The three automakers have rebounded from the recession even as Detroit foundered under an $18 billion (€13.7 billion) debt load. GM and Chrysler, which emerged stronger from their own bankruptcies in 2009, express confidence that the city also will benefit from shedding many of its liabilities and reorganizing operations.
The carmakers and their suppliers have a much smaller presence in the Detroit than they did decades ago. GM, the only one of the three with headquarters in the city, also builds the Chevrolet Volt extended-range hybrid in a factory there. Chrysler makes Jeeps, engines and the Dodge Viper performance coupe at three Detroit factories.
Organizers of the Detroit auto show say the event won't be affected by the bankruptcy. They note that the show's downtown venue, Cobo Center, is operated by a regional authority and is not dependent on city funding.
RELATED CONTENT
-
Achieving Efficiency?
A look at on-road fuel economy changes over 92 years.
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
Study: Border Tax, NAFTA Exit Would Hurt U.S.
The U.S. auto industry would lose at least 31,000 manufacturing jobs and 450,000 units of annual sales if the U.S. imposes 35% tariffs on cars from Mexico, as President-elect Donald Trump has vowed to do.