Tuesday, September 13, 2005
Wither Detroit: Update
Smaller, and smaller....
Detroit has been on a long slow decline for many years now. In the city itself there are blocks and blocks of vacant houses and many of the 1930's era office towers lie vacant. Back in February we talked about how the parts suppliers for the Big Three (err..Big Two), who were spun off as private companies a few years back are going down the tubes, pulling Michigan's economy down with it. Well, it looks like the mac-daddys of the suppliers, Delphi, is on the verge of bankruptcy. If they fall into bankruptcy protection, they can dump their $10 billion pension liability on GM, which is already overburdened.
Look out Detroit, in the next four or five years, perhaps sooner, we could see at Toyota-Ford or Toyota-GM merger....
Detroit has been on a long slow decline for many years now. In the city itself there are blocks and blocks of vacant houses and many of the 1930's era office towers lie vacant. Back in February we talked about how the parts suppliers for the Big Three (err..Big Two), who were spun off as private companies a few years back are going down the tubes, pulling Michigan's economy down with it. Well, it looks like the mac-daddys of the suppliers, Delphi, is on the verge of bankruptcy. If they fall into bankruptcy protection, they can dump their $10 billion pension liability on GM, which is already overburdened.
Look out Detroit, in the next four or five years, perhaps sooner, we could see at Toyota-Ford or Toyota-GM merger....
