General Motors Corporation which is one of the biggest automakers in the world headquartered in Detroit. Ford Motor Corporation also headquartered in Detroit with 213000 employees worldwide in their 90 plants and other facilities. Chrysler Group, which is located in Auburn Hills Michigan has their Historical Services in Detroit, which is considered as the one among the Big Three (Ford, General Motors, and Chrysler) in the US
Visteon Corporation which manufactures automotive parts , SBC a telecommunication company, healthcare companies like Trinity Health, Henry Ford Health System, pharmaceutical company Pfizer Inc, systems technology company Delphi Corporations, global shipping company FedEx Corporation, cable network company Comcast and the list go on. Even then Detroit went bankrupt!
The city of Detroit in the State of Michigan, home for many MNCs filed for bankruptcy protection, that too after a long economic crisis. And the reasons include 1) decline in the population since 2000 to 26%. 2) Unemployment to 18.6%. 3) Tax revenue lowered affecting the city services. 4) Exodus due to high crime rates. 5) Mismanagement by its Democrat government ruling since 1962.6) The global decline in the automobile industry7) Freeway construction combined of demolition of houses and industrial buildings8) Illiteracy about 50% poverty of 60% among children, racism which led to the 1967 riots, from 2000 to 2010 Michigan lost 48% of manufacturing jobs.
What are the revival and reinvestment plans?
The City has already designed a plan for the restructuring which could save $200 million per year but just like austerity methods this plan will surely impose more restrictions and burdens on the residents and the workforces.
1) Job cuts which makes 2, 700 unemployed people but it resulted in annual savings of $100million
2) Implementation of City Employment Terms and thus to reduce labor costs
3) The renewed CET may result in savings worth $102 million annually
4) More initiatives to increase the revenue
5) Reduced operating costs
6) To defer the capital expenditure
7) Demolition of vacant structures
8) Executing Consent Agreement of Financial Advisory Board
9) Appointing Emergency Manager
Reinvestment Plans
The main investment will be in Public safety, mainly in the police department to make a reasonable reduction the high crime rates which has made Detroit an unsafe place for peaceful living. Another area which massive investment going to take place is Fire and EMS( Emergency Management Services).
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