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

Recommended

During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
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