Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

You gotta see the front page of today's Detroit Free Press!

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 08:52 AM
Original message
You gotta see the front page of today's Detroit Free Press!



WITH VIDEO
Metro Detroiters to Obama's auto task force: We're in a crisis
FREE PRESS STAFF • MARCH 9, 2009


Welcome, task force.

As you visit Detroit today to gather information to help President Barack Obama decide how or whether to save the nation's auto industry, it's important you hear from more than the car company executives and UAW leaders.

We're here to help.

When we heard you were coming, we went out in the birthplace of this industry -- our home, too -- and talked to people you won't. Families and business folks who struggle with their present and fear for their future. Consider:

Shirley Triffle, who loses company-paid health coverage April 1, told us: "We just have to sit here and take it."

Youthful software engineer Brian Balasia, who said that even without auto clients his business is hurting: "You can be six links away, but it still has a direct impact on the business."

We heard much more.

Please take a few minutes to listen to the voices of people in our city and state who are at the epicenter of this American tragedy.


• MORE: Metro Detroiters share pain, pride http://www.freep.com/article/20090309/BUSINESS01/903090332
Printer Friendly | Permalink |  | Top
SammyWinstonJack Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 08:54 AM
Response to Original message
1. K&R
Printer Friendly | Permalink |  | Top
 
Captain Hilts Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 08:55 AM
Response to Original message
2. For LisaM. nt
Printer Friendly | Permalink |  | Top
 
liberal N proud Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 08:57 AM
Response to Original message
3. k&r
Printer Friendly | Permalink |  | Top
 
JustABozoOnThisBus Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 09:03 AM
Response to Original message
4. Need to watch where the money goes
If GM and Chrysler are going to take the money, invest in plants in Mexico and China, and lay off U.S. workers, then this is not a good use of the money. Screw them.

But if the money can save U.S. jobs, keep U.S. plants open, maybe even mothball some overseas plants, then I'd support pumping them up, maybe even forgive part of the "loan". Maybe get higher-mileage fleets as a condition.

I wish Obama would put AIG under the same scrutiny as the auto companies. All we seem to do is moan about the choice of resorts for their celebrations.

Printer Friendly | Permalink |  | Top
 
Upfront Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 09:13 AM
Response to Original message
5. K&R
Printer Friendly | Permalink |  | Top
 
hlthe2b Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 09:24 AM
Response to Original message
6. I am very emotional about this... We must do the right thing
by the US auto industry--the unionized US auto industry. And, they MUST once again become the innovative, responsible corporations they once were.

Best wishes, Detroit!
Printer Friendly | Permalink |  | Top
 
TwilightGardener Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 09:26 AM
Response to Original message
7. Heartbreaking.
Printer Friendly | Permalink |  | Top
 
Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 09:54 AM
Response to Original message
8. Terrific piece from the Financial Times: "The travails of Detroit"
The travails of Detroit
By John Reed
Published: March 6 2009 18:35 | Last updated: March 6 2009 18:35


You expect snow in Detroit in winter, and this time there was plenty. I waded through drifts, sweeping mounds of it off my car, and gunning the engine in slush to get the wheels going again. Detroit and Wayne County, which encompasses the city and many of its biggest suburbs, is out of money, so the ploughing and salting of roads here is as patchy as it is in England – although blizzards in south-eastern Michigan are hardly once-in-18-years events.

Weekends are particularly bad. Side streets are not cleared at all, giving downtown driving a Mad Max quality. One sleety evening on the border of Detroit proper and Dearborn, my rented Ford Focus skidded on black ice and hit a concrete roadside barrier. A 911 call to get help driving home (my car was fine, but I had lost my glasses) provided a sobering lesson in Detroit’s fragmented polity: after being shunted between emergency services in the two municipalities, both of which were inundated with similar requests, I gave up and drove myself back down Ford Road – very slowly, squinting.

I had come to Detroit for the auto show. I stayed on for seven weeks, at first living in a condo near the Ford Motor Company’s suburban “Glass House” headquarters, where the telephone rang repeatedly with robo-calls from a bill-collection agency chasing a previous tenant. Then came a downtown loft – set in an almost cinematically American landscape of half-deserted art deco towers, steam rising from manholes and a daytime population split between office workers and vagrants.

In January, Detroit saw its municipal bonds downgraded to junk status by Standard & Poor’s and Moody’s, both of which expressed doubts about the city’s ability to close a $300m budget deficit. In early February, Kwame Kilpatrick, the former “hip-hop mayor” (so dubbed by comedian Chris Rock after Kilpatrick entered office aged 31, with a diamond earring and endorsements from a number of rappers) was released from jail after serving a 120-day sentence for perjury and assault. He flew to Texas for a job interview, and soon afterwards, the city held a primary poll for an election to replace Ken Cockrel, his caretaker successor. Meanwhile, federal investigators were probing a “pay-to-play” sleaze scandal involving the alleged bribery of other city officials by a company called Synagro, relating to a $1.2bn sewage sludge disposal contract, and a corpse was found in an abandoned Detroit warehouse, encased face down in ice, legs protruding like popsicle sticks. It turned out several men had been playing hockey around the body. In a city where the headlines pretty much write themselves, the story ran under the words “Frozen in indifference.”

The story seemed an apt metaphor for a city enduring the collapse of its century-old car industry, only to be met with a public reaction in other parts of the US best described as a collective shrug. In late January, Chrysler, whose year-on-year sales plunged by 55 per cent in January, began re-opening its north American car plants after a near-two-month shutdown, then promptly said it was closing at least three of them again. This came shortly after the company, alongside General Motors, formally became a ward of the state, collecting its $4bn share of the $17.4bn emergency federal bridging loans approved for the two ailing companies in December. When GM’s dismal 2008 sales figures came in, the company finally fell behind Japanese rival Toyota in the long-watched race to become the world’s top-selling carmaker – although there were no victory parties in Tokyo as GM’s nemesis said it was heading for its first full-year loss since 1950.

For decades, scribes from America’s coasts and beyond have been parachuting into Detroit to marvel at its horrors. The city never fails to deliver colourful copy: the urban decay, the $1 houses that still go unsold, the tragicomic city politics. Jerry Herron, a writer and scholar at Detroit’s Wayne State University, likens journalists’ morbid delight at Detroit to that of Victorian travellers reaching Pompeii. “City of the dead, city of the dead,” Thackeray wrote. The words might as well apply here.

. . .

Detroit may be the archetypal down-and-out rust-belt city, but to call it “dying” masks a more complex reality. Greater Detroit still has three to four million residents, a world-class university next door in Ann Arbor and the bone structure of a great city, as a car-industry consultant with the ear of a poet put it over lunch one day. Why, then, the relentless focus on its failings? Nearly everyone you meet is either weary or angry at seeing their home town made the butt of jokes on late-night television and the subject of anguished political commentary. But no one denies that the region’s property market is abysmal, its finances a mess and its industrial base shrinking at an alarming rate.

Instead, Michiganders, despite being self-deprecating to a fault, make a point their countrymen won’t want to hear: Detroit is no longer the nation’s worst-case scenario, but on its leading edge, the proverbial canary in the coal mine. “It’s like the rest of the country is getting to where Detroit has been,” said Peter De Lorenzo, who writes the acerbic and very funny Autoextremist.com blog. That means that smug mock-horror is no longer the appropriate reaction to the frozen corpse. Instead, get ready for a shock of recognition.

More at: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x431447

Printer Friendly | Permalink |  | Top
 
TahitiNut Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:17 AM
Response to Reply #8
10. "a world-class university next door in Ann Arbor"???
As an alumnus of Wayne State University (inside the city limits of Detroit), I find the reference to the University of Michigan and dismissal of Wayne State and Michigan State (in Lansing) to be in appallingly bad taste.
Printer Friendly | Permalink |  | Top
 
Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 11:35 AM
Response to Reply #10
16. The FT writer is a Brit
Motor industry correspondent, Financial Times
Reed was formerly a foreign correspondent for the FT in Warsaw and Johannesburg and has worked at the newspaper since 2000. He lives in London. 07.03.09
Printer Friendly | Permalink |  | Top
 
knitter4democracy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 11:41 AM
Response to Reply #10
18. Thanks. I did, too.
Go Green! My dad worked at the cyclotron lab there and actually helped dismantle UofM's cyclotron when they decided to stop having one for their physicists and State bought it. Wayne State puts out better doctors, in my opinion, and MSU's way better in physics and several other departments.
Printer Friendly | Permalink |  | Top
 
AZ Criminal JD Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 08:41 PM
Response to Reply #10
26. In what world
are Wayne State and Michigan State "world class universities"?
Printer Friendly | Permalink |  | Top
 
TahitiNut Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 09:04 PM
Response to Reply #26
28. The real world, sonny.
:eyes:
Printer Friendly | Permalink |  | Top
 
AZ Criminal JD Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 09:22 PM
Response to Reply #28
29. Maybe the alternative failed world inside the Detroit city limits
Nut
Printer Friendly | Permalink |  | Top
 
pacalo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:21 PM
Response to Reply #29
30. That's a very rude thing to say
considering it was in reply to Tahiti Nut's comment about being an alumnus of Wayne State, & considering that he is among the more intelligent posters here.

I say the same for knitterfordemocracy, who agreed with Tahiti about the quality of Wayne State.

Sharing your own personal experience at Wayne State would be preferable to calling someone a "nut" because you disagree.
Printer Friendly | Permalink |  | Top
 
Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:47 PM
Response to Reply #29
31. My brother teaches at WSU's med school. Got his MD from UMich. His PhD came from ...
... Vanderbilt. And he's published in professional journals. And CNN reported some of his research.

I'm proud of him. Nothing second class about him.


Printer Friendly | Permalink |  | Top
 
ensho Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:00 AM
Response to Original message
9. well done, Detroiters are fighting for their city smartly
nt
Printer Friendly | Permalink |  | Top
 
TBF Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:20 AM
Response to Original message
11. In solidarity, Detroit. K&R n/t
Printer Friendly | Permalink |  | Top
 
femrap Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:32 AM
Response to Original message
12. I prefer my taxes go to the manufacturer's of the
country than the damn financial conglomerates like AIG, B of A, and Citi who played with trillions of dollars in Derivatives which produce NOTHING! DERIVATIVES ARE UNPRODUCTIVE. These stupid financial instruments are the reason for this financial mess, not the sub prime real estate market.
Printer Friendly | Permalink |  | Top
 
nichomachus Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 12:56 PM
Response to Reply #12
19. Exactly -- the housing bubble did not cause this
Had the rest of the economy been run as it should, the collapse of the housing bubble -- as it had in the past -- would merely have been a much-needed correction in an out-of-control market. The same thing happened in the early '90s. Some individuals would have suffered and some banks would have suffered a little from lending money on overpriced houses to people who couldn't pay. But, at the end of the day, we would have weathered the storm and prices would have come back down into the atmosphere.

What we've seen has to do with all the phony paper floating around in markets unchecked by regulation and oversight.
Printer Friendly | Permalink |  | Top
 
femrap Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 08:23 PM
Response to Reply #19
25. That's all America produces
....unproductive phony paper. Pretty sad. And it infected the entire world.
Printer Friendly | Permalink |  | Top
 
myrna minx Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:43 AM
Response to Original message
13. K&R. My home town, Janesville Wi, just lost their GM plant in December.
I know how vital our auto industry is to our economy. K&R for Detroit.
Printer Friendly | Permalink |  | Top
 
1gobluedem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:49 AM
Response to Original message
14. Everyone, please read this
Read the stories from the PEOPLE - not the execs - who are directly affected. It's not just autoworkers; it affects every type of business you can imagine: restaurants, barbers, retailers, software designers, arts organizations, it goes on and on and on...

Case in point: my SO is a musician who composes original music for TV and radio commercials. 75% of his businesses was for car commercials and it's gone. That's huge.

K&R
Printer Friendly | Permalink |  | Top
 
Ishoutandscream2 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:54 AM
Response to Original message
15. I have such a high respect for Detroit and the Detroit Free Press
:applause: :applause: :applause:
Printer Friendly | Permalink |  | Top
 
cascadiance Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 05:19 PM
Response to Reply #15
21. And they nickname the Free Press the "Freep". I wonder if lurking Freepers are getting upset...
... about that... :) Maybe they'll want to get a new nickname? Nah!
Printer Friendly | Permalink |  | Top
 
MindMatter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 11:38 AM
Response to Original message
17. If they are in crisis, why won't they sell some vehicles to their biggest, best customers?
24 months ago, the so-called "Big three", now known as the "Detroit Three", very soon to become the "Detroit One-and-a-half", made the brilliant strategic decision to cut the car rental companies out of their marketing. Each of them consciously made decisions to reduce the incentives to car rental companies, such that today John Q Public can get a deal that is practically the same they are offering to the fleets that buy vehicles by the hundreds of thousands.

That is why they are failing, plain and simple. They did this to themselves. There are car rental fleets out there with the capital and the need to buy at least a half million vehicles this year, and these guys are still not offering any reasonable incentives.

Bastards brought this upon themselves with their own stupidity.

The government shouldn't give them another penny. They could solve this "crisis" overnight by telling Detroit that they are creating a financing fund for the car rental fleets, and that Detroit can get all the money they need by selling their excess capacity to the car rental fleets.

All of the fleets are running high miles now because the Detroit 1.5 have put the screws to them. Enterprise is in a position to buy at least 400,000. Hertz could buy 200,000. Budget/Avis could buy 100,000 or more, and this could happen virtually overnight. Dollar/Thrifty, Payless, ACE and the regional companies can do another 150,000 right away.

500,000 vehicles times an average price of $20,000 is revenue of $10B and the fleets can do 2-3 times that amount within a 12-month cycle.

They don't need a freaking bailout. They need to deal.
Printer Friendly | Permalink |  | Top
 
dmr Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 05:23 PM
Response to Reply #17
22. What are you talking about?
What you wrote made no sense to me. Nothing so complex is as simplistic as you make it!

You offer no link to substantiate your claim, so I did some Googling. What I found disproves your bold assertions. If you have something more concrete, I would be interested.

http://www.tennessean.com/article/20090303/BUSINESS/90303040

- snip - Retail sales were off 43 percent in February, but fleet sales were down 75 percent as part of GM’s strategy to curb sales to big fleets such as rental-car agencies because those vehicles come back into the marketplace sometimes as soon as a few months after initial sale, and end up competing with new vehicles on dealer lots. - snip -

http://dealbook.blogs.nytimes.com/2009/03/05/the-knock-on-effects-of-a-gm-filing/

- snip - About 28 percent of Hertz’s rental fleet is G.M. cars, according to regulatory filings. For some of those cars, Hertz has agreements with G.M. that allow it to sell them back to the automaker, as well as guaranteed depreciation schedules that put a floor on the resale price. - snip -

http://www.myfoxphoenix.com/dpp/money/Rental_Car_Slowdown_Hurts_Automakers2134036
Rental Car Slowdown Hurts Automakers
- U.S. automakers have been struggling to sell cars ever since the economy went south. Now it looks like a sharp drop in travel spending _ specifically, on rental cars _ has also caught up with the troubled industry.

Rental car companies, a major customer of the automakers, have seen demand for their services fall since the financial crisis erupted in September 2008, prompting businesses and consumers to cut back on travel spending. With cars sitting idle in their lots, rental companies are much more inclined to scale back their fleets than to buy new vehicles.

Large-volume sales _ also known as "fleet sales" _ to rental car companies and municipalities typically account for about 20 percent of auto industry sales. So a sharp drop in rental car demand is enough to make a bad sales month for the U.S. auto industry dramatically worse. - snip -

Printer Friendly | Permalink |  | Top
 
MindMatter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 05:47 PM
Response to Reply #22
23. THose are turnback deals. That's small change
I'm talking about "risk purchase" where the car rental companies take the risk of remarketing the vehicle. That's how most of the business is done these days. The car rental companies, especially Enterprise, got very good at that. The Detroit one-and-a-half got pissy about that and thought they could do better than the car rental companies.

Obviously they could not. They had a great thing going and they screwed it up. It really is as simple as that. Trust me on this one. I have detailed knowledge of the the biggest deals made in the car rental industry over the past 3 years.

All of your quotes support what I am saying. If you want me to translate them I will.
Printer Friendly | Permalink |  | Top
 
AZ Criminal JD Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 08:45 PM
Response to Reply #23
27. I read the links too
They completely support your points. I don't think the poster actually read them.
Printer Friendly | Permalink |  | Top
 
Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 01:27 PM
Response to Original message
20. When looking at the front page, the red and white name tag catches my eye.
Hello, my name is Detroit

Five words.

Says it all.

Printer Friendly | Permalink |  | Top
 
onethatcares Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 06:54 PM
Response to Original message
24. it's not just in Detroit.
although the bigwigs have been trying to do away with the UAW for what seems like forever.

Today here in St. Petersburg Florida I called a local aluminum gutter maker up to get some prices, expecting to hear the countergirl I always talk to, I was surprised to hear her boss on the line. I asked what happened to her, he said the economy caused him to lay her off. That's after 25 years and I don't think she has a great benefit plan.

The job losses are everywhere. WHY??????
Printer Friendly | Permalink |  | Top
 
OhioChick Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-09-09 10:48 PM
Response to Original message
32. Rec'd n/t
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Wed May 01st 2024, 03:13 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC