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Detroit Three Unlikely to Be Hurt by City’s Bankruptcy
Detroit is the birthplace of the American auto industry.
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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.
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