I know we’ve had a lot on this blog about the current recession and how hard it has hit the auto industry and Michigan.
So, I apologize if you’re sick of reading about it, but I’m posting a link to this sobering Wall Street Journal Story about laid-off white collar workers.
“Mr. Barr, 46 years old, was the type of well-educated, white-collar ‘knowledge’ worker that Michigan hoped would help offset a decline in auto-assembly jobs. But Detroit’s Big Three car makers have aggressively thinned these ranks in the past two years, perhaps …

In honor of his 100th day in office, NPR ran a story yesterday on Detroit Mayor Dave Bing.
The former NBA star is contesting with a $275 million deficit, a potential municipal strike, school and transportation systems that are tetering on collapse.

According to NPR some are questioning whether Bing, a political novice who replaced Kwame Kilpatrick, is up to the job.
Bing won a recent primary with 70 percent of the vote. But his opponent Tom Barrow, a C.P.A., says Bing is in over his head.
“He just doesn’t understand how municipal finance …

Some potential good news for the struggling auto industry: The New York Times reports the so-called “Cash for Clunkers” program has really taken off - so much so that it is completely out of money.
“About a quarter-million vehicles were sold under the program,” the Times reports, “which offered payments of $3,500 to $4,500 for people who traded in old cars for new ones that had higher fuel economy. The average payment worked out to about $4,000, and the total payout, about $1 billion, the amount allocated by Congress under the …

Remember Steve Rattner? The guy who was going to save us all?
Well he has quit his job as Car Czar, helping oversee the bailout/bankruptcy of The Big Three, after only five months.
“With GM’s restructuring complete, Steven Rattner, whose leadership and vision were invaluable to the auto task force’s efforts, has decided to transition back to private life and his family in New York City,” Treasury Secretary Timothy Geithner said (via Detroit News).
The former Wall Street financier worth $188 million will be succeeded by Ron Bloom, a former adviser for the …

GM is emerging from bankruptcy today, free of debt, under modified contracts and with the president’s approval.
It was in Chapter 11 for 40 days.
The federal government controls a 61% share of the new, leaner company.

Meanwhile, some jerks are organizing a boycott of the company, as if it didn’t have enough problems.

The Federal Government will steer $50 million in assistance to communities with auto plants that have experienced significant layoffs, The Associated Press reports.
The money will come from federal stimulus funds and be used for job training and placement.

The New York Times asked a number of economists to respond to the question, “do we need a domestic auto industry? Many American manufacturing industries, like textiles and electronics, long ago moved to other producing countries. Why is the auto industry different?”

I know this is a few weeks old, but it took me awhile to get through it all.

CNN is reporting that manufacturing orders have stabilized and the industry will likely undergo an uptick.
Tempe-based Institute for Supply Management said its manufacturing index is beginning to climb after a 15-month slump.
“This is definitely a good start for the second quarter,” said the institute’s Norbert Ore.
The same cannot be said for automakers.

So the big news today is that the Obama Administration is conducting a forced “reorganization” of General Motors (R.I.P. Pontiac).
The Plain Dealer reports that GM will cut 21,000 jobs and close 42 percent of its dealerships. A lot of bond holders are angry with the deal and feel they’re being shortchanged. Meanwhile, retiree healthcare benefits are in jeopardy if the company enters Chapter 11, which is a real possibility.
Rather than blast Obama, The Detroit News today writes about the efforts the president is making to soften the blow for Michigan.

So the big news today is that the Obama Administration is conducting a forced “reorganization” of General Motors (R.I.P. Pontiac).
The Plain Dealer reports that GM will cut 21,000 jobs and close 42 percent of its dealerships. A lot of bond holders are angry with the deal and feel they’re being shortchanged. Meanwhile, retiree healthcare benefits are in jeopardy if the company enters Chapter 11, which is a real possibility.
Rather than blast Obama, The Detroit News today writes about the efforts the president is making to soften the blow for Michigan.