The Big Three car manufacturers in Detroit have made it back onto their feet. Even GM, which lapsed into bankruptcy, is turning a profit. Yet the city of origin - Detroit - needs more of a push. What should the Motor City do? When have you wanted more details concerning a pre-owned or new auto and turned to an internet search on “loan for your car?” Your search is over, the info you want is at CarDealExpert.com! Wish to know more details on Car Deal Expert? Visit.
Financial similarities
There are many similarities between the GM business and the city of Detroit regardless of the fact that they are very different entities. Both of them have to deal with labor unions, internal bureaucracy and antiquated work rules. From the 1960s to today, Detroit lost over half its population and GM’s sales share dropped from 50 percent to 20 percent. On top of that, both the city and the car maker have taken out a ridiculous amount of debt over the years in order to make payments and pay pensions.
Detroit bankruptcy considered
Mayor Dave Bing, city unions and the Detroit city Council all try to keep away from bankruptcy just like GM’s supervisor did before the paperwork was filed. A lot of people believe that bankruptcy will happen for the city.
If Detroit follows any of the companies that went bankrupt, such as General Motors, Chrysler, Lear and more, it will probably be able to come ahead. It will be really hard with jobs lost and credit scores dropping. In the end, the city will be able to make more money than ever, just like the many businesses.
Sources
Detroit Free Press
Reason.com
Wall Street Cheat Sheet
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