Resilient Detroit Will Come Back Strong

Some Republicans were ready to let GM, Chrysler die: Jonathan Cohn

(NEWSER) - Barack Obama reportedly plans to make the auto bailout a key part of his reelection campaign, and Jonathan Cohn of the New Republic thinks that’s a great idea. Chrysler and GM are in much better shape, he argues—GM in particular is “reporting big profits, it is winning design awards, and, most important of all, it is selling lots of cars.” More importantly, employment is creeping higher in states like Michigan with a heavy auto industry presence. More»

Revenue climbs 35% as Big Three return to profitablility

(NEWSER) - Good news for Detroit: The Big Three automakers are all profitable once again. Chrysler has reported its first net profit since leaving bankruptcy nearly two years ago, with a net income of $116 million in the first quarter. The firm saw revenue jump 35% to $13.1 billion compared to Q1 of 2010, with worldwide vehicle sales hitting 394,000, an 18% rise. Chrysler has seen operating profits over the past few quarters, but it was still losing money overall due to the hefty interest payments (to the tune of $348 million in Q1) on its $7.5 billion in US and Canadian government loans, the Wall Street Journal reports. More»

(NEWSER) - GM says it will need an additional $16 billion in federal aid to stay afloat, the Detroit News reports. The automaker laid out its restructuring plan for the Obama administration today, requesting $2 billion next month and another $2.6 billion in April to avoid bankruptcy. GM also will shed 47,000 jobs worldwide this year, including 20,000 in the US. The company will shut five more American plants as part of its plan to return to profitability in two years. More»

States woo Northern economy with lower wages, 'inhumane standards'

(NEWSER) - It's no coincidence that Dixie senators derailed the Big Three bailout, since the South—with anti-union laws, low wages, and modest taxes—has built a counter-Detroit that will ensure that neither the Motor City or the South will rise again, Michael Lind writes in Salon. The same tactics were used to poach Northern textile factories early last century, he adds, calling for a "Third Reconstruction" that puts a halt to the South's spiraling "race to the bottom." More»

Bailout collapse leaves state fretting over future

(NEWSER) - Detroit's bailout has crashed and burned, casting a pall on Michigan's future, the Detroit Free Press writes. The state knows the pain that comes with tough times in the auto industry all too well, and it's "incredible" that any American lawmaker "could want to watch these hard times turn so much harder for so many people," notes a Press editorial. More»