Detroit's Rebirth & Evolution Is Not Without Peril

[ozpont]

Detroit's Evolution Is Not Without Peril

Big shifts in the economy often are likened to forces of nature. The impact of the financial crisis on Detroit's car makers, for example, was akin to an asteroid that wiped out plodding dinosaurs to give rise to nimble new creatures.

Less than two years after General Motors Co. GM +1.57% and Chrysler Group LLC declared bankruptcy, and Ford Motor Co. F -0.69% narrowly avoided it, their fortunes were boosted by a real-life catastrophe. Japan's March 2011 earthquake disrupted auto exports for several months just as its car makers were starting to once again take U.S. market share.

By that June, U.S.-based companies had boosted their market share by seven percentage points and Japanese companies shed nine points—a shift that normally takes years. Not only did Detroit sell more cars but, because of tight inventories, it saw greater unit profit, too.



Since last fall, yet another seismic shift has taken place. Japan's central bank helped weaken the yen, with the dollar breaking through ¥100 last month, a 30% depreciation that makes Japan's exports more competitive.

Still, U.S. auto sales reports for May due Monday should show that despite the currency tailwinds for Japanese manufacturers, U.S. auto makers probably had a banner month after a dip in April. Sales probably topped 15 million vehicles at a seasonally adjusted annualized rate. Through April, their market share was 46.2% versus 44.7% a year earlier.

A home-building rebound and gasoline-price drop favor sales of light trucks, Detroit's forte. While trucks make up half of all U.S. light-vehicle sales, they accounted for 60% of GM's sales and 55% of Ford's in April. Pickup trucks are a particular strength. All three U.S. auto makers have cut back on summer factory closures this year to meet demand.

But investors clearly think a weak yen will help Japanese car makers. Measured in dollars, Toyota Motor Corp.'s 7203.TO +2.07% stock has appreciated by 50% since October—a gain about equal to Ford's entire market value. Toyota's fortunes in other markets stand to gain too, of course, and its U.S.-built cars don't benefit from a weak yen. Even so, Japanese manufacturers may soon be tempted to price their U.S. vehicles more aggressively.

Detroit may have shrugged off currency tremors from Japan, but it hasn't felt the aftershocks.

[ozpont]

Another update on Detroits REBIRTH.. the old MASSIVE MASSIVE.. HUGE .. Packard plant.. so much in a wasted socio-economic region of Detroits outer lying wasteland... once a huge employer.. huge commercial area.. is worse then a war devastated wasteland.. I've been over it several times.... with images in front of me of what it WAS like.. and what I could see.. etched into a memory..
  But it looks like .. this guy.. just might be a savior...

http://www.nytimes.com/2014/02/05/realestate/commercial/a-developer-from-peru-has-big-plans-in-detroit.html?_r=1

[roadhound]

Ah the mystic of Detroit.quite a challenge for the bargain hunter you can still buy a home for 1 dollar
I have family living at 10 mile been there forever they get on with their lives ones an ex chrysler auto worker with a permanent chip on his shoulder aims all his critics mainly at the governments.He and his family are very happy there living in Detroit and I personally find the city exciting as a visitor and its motown stigma and all the history. yes as the jethro tull song" living in the past" I'm sure the glory days are long gone
This developer would have to change the culture of the entire town if he can pull this off he may not last to see it fruit such is this city.Once or if  he has built his vision then you would still have to drive past all the other run down derelict sites littering the city.When I speak to any american friends, family about this city its a conversation that doesnt last very long and basically told there are better places to consider living in.
When you park in Belle isle at night look at the city of Detroit in all its glory you wouldnt think their was ever a problem there.I'll ask what he thinks of this nutter and his ambitions. in another post..

[ozpont]

   There is a lot of "want to hate" people from different areas in the USA.. between themselves at times.. but they DO stick together and overall have civic pride in their country -  MORE then we do..
   Detroit has a lot of history.. there is more to do around the NE USA then in any other part of the US when it comes to history, social change.. industry, music.... and culture.  There's also a lot of boofheads that lived in the age of entitlement too.. had the goose that laid the golden egg at their finger tips for SO long.. till many (who are not around now to help) brought about so much pressure. .and the automotive industries management was also so weak.. as were the politicians.. that something had to give.
    I would like to live in Nevada rather then Detroit.....as its just too cold in the North East for me to like there 365 days.. as so many do... .but visiting Detroit often..as I have for now over 30 yrs... find some of the nicest people we have come across there..... the most welcoming .. commercially and privately.. have welcomed groups of Aussies that I've traveled with over the last 20 years or so..  they reside from that city & surrounding towns & they too have seen change...but keep trying....
    and yes.. Belle Island it tranquil but boy has it too been let done a bit in the last decade.... still a must see place to cruise -  in the daytime... (see the ending of Grand Torino for a view of it) ..    Can only state as I've found....

[ozpont]

And no better show of community.. one of the best ever LipDubs done.. was in Grand Rapids.. Michigan.. a city hit hard too by the Automotive downturn.. but community is king..   Unfortunately we are too restricted to be about to do things like this.. not without an army of OHS & Licenses, government public servants having endless committee meetings.. and can't forget .. public liability and heaven forbid .. if it offends a a bogan or a minority....!
.. Grand Rapids.. if you have not seen it.. watch it..  GRAND RAPIDS LIPDUB...
http://www.experiencegr.com/experience-grand-rapids/lipdub/