General Motors and Chrysler Group express support for Detroit

Article by Anita Panait, on June 17, 2013

US carmakers General Motors Co. and Chrysler Group have issued statements of support for the City of Detroit, which recently disclosed that it is defaulting on a $2.5 billion debt to avoid bankruptcy. Detroit-based GM operates one major manufacturing site in the city while Chrysler has two assembly plants within city boundaries.

Chrysler, which is headquartered in nearby Auburn Hills, said in a statement that it “firmly believes in the City of Detroit and its people, as evidenced by our continued investment in the city and its residents." In 2012, Chrysler shifted around 70 employees to the former Dime Building in downtown Detroit, after leasing the top two floors and renaming it Chrysler House. 

Greg Martin, a spokesman for GM, said in an e-mail to Bloomberg, that they hope “all parties can come together and take action to build a stronger city.” He noted that a healthy auto industry will play a role in “Detroit's comeback story and GM is doing its part."

Detroit Emergency Manager Kevyn Orr announced Friday that the city would suspend payments on $2 billion of unsecured debt, starting with $39.7 million owed to fund pensions. 

He also announced a reorganization plan that entails establishing a regional water agency to take the stead of its municipally owned department. Under the plan, pensions of active and retired workers would be reduced. The plan also called for spending of $1.25 billion over a decade to improve services and create a more livable community. [source: Crain's Detroit]

Topics: gm, chrysler

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries