Auto

Car lot
Lester Graham / Michigan Radio

Ford sales are up 24%, Chrysler sales are up 17%, and GM's are up  11%. It's been a good news week for the "Big Three" (can we still call them that?). Chrysler and GM also announced they plan to hire more workers in Michigan, and the Brookings Institution says Metro Detroit is recovering.

Here are some figures from a number-laden Detroit News article on auto sales:

  • Sales for Chrysler's Jeep brand were up 58 % for November compared to a year ago
  • Ford's year-to-date sales total 1.74 million vehicles - growing at a pace double the industry average
  • Ford's F-Series trucks were up 26 %
  • GM's big brand Chevrolet was up 18 % for the month compared to a year ago, its sales strengthened by the new compact Cruze and popular Equinox and Silverado
Steve Carmody / Michigan Radio

A contract dispute between Flint's mayor and the city's public safety unions escalated Tuesday.



Tuesday, the city of Flint sent layoff notices to 20 police officers. The city and the police unions have not been able to agree on major contract concessions to help reduce a projected budget deficit.


Nurses at Lansing's Sparrow Hospital overwhelmingly approved a new contract with the hospital.

The contract approved Tuesday came after a sometimes contentious negotiations between the two sides.

"There was a very diverse opinion about the details of the contract about what was good and what was bad," says Robert Kolt, a spokesman for the nurses union, "They had to agree...that patient safety was a top priority."

The contract contains a modest wage increase for the nurses and other support staff.

Chrysler headquarters in Auburn Hills, Michigan
flickr user fiatontheweb / creative commons

Today executives at General Motors announced they plan to add 1,000 jobs in Michigan.

Now, Chrysler executives have announced they also plan to add 1,000 jobs.

The Wall Street Journal reports:

GM to hire 1,000 in MI

Nov 30, 2010

General Motors has just announced that it will hire 1,000 engineers to work on battery technology in Michigan. The jobs include helping to develop batteries for hybrid, electric and hydrogen fuel cell vehicles. Most of the jobs will be at a technical center in Warren.

The Detroit Free Press reports the jobs come as GM:

…prepares to deliver the first Chevrolet Volt extended-range electric cars next month… GM plans to build 10,000 Volts by the end of 2011 and at least 45,000 in 2012. Initially, the Volt will sell in California, New York City, Washington, D.C., and Austin, Texas. Next spring, those markets will expand to include Michigan, New Jersey, Connecticut and the rest of New York and Texas. Within a year and a half, GM plans to sell the Volt nationwide.

Jobless benefits will expire for tens of thousands of unemployed Michiganders this week unless Congress approves an extension.



Many of those losing their benefits are expected to turn to Michigan food banks and other non-profit groups.



"Those safety nets are really not prepared to take on all of these extra families," says Judy Putnam, with the Michigan League for Human Services."


Salvation Army
elstudio / creative commons

Over the next couple of weeks, chances are you’ll find lots of letters in your mailbox asking for charitable donations. That's because nonprofits across Michigan are doing their annual end-of-year holiday push for financial donations.

Kyle Caldwell is with the Michigan Nonprofit Association. He likes to call the holiday season the “giving season.”

Michigan retailers have been busy this weekend with the beginning of the holiday shopping season. But Monday could be a very big day as well.

The National Retail Federation coined the term ‘Cyber Monday’ five years ago to describe the growing trend of holiday shoppers flooding store websites on the Monday following thanksgiving.  A recent survey found more shoppers planned to shop online  Monday than stand in line on the Friday after Thanksgiving.  

Michigan congressman Dale Kildee expects congress will approve extending jobless benefits for the long-term unemployed next week. 


An extension would allow people who’ve been receiving jobless benefits for more than 26 weeks to continue to receive financial aid.   The current extension expires next Wednesday.    Hundreds of thousands of unemployed Michiganders will stop receiving unemployment checks unless an extension is approved. 

General Motors formally announced today that it is investing more than 160 million dollars in plants in Flint, Bay City and in Defiance, Ohio.


 The three plants produce components for the Chevy Volt, Cruze and a third unnamed Chevrolet small car.


 Bill Jordan says GM’s announcement is an early "Christmas present.”   Jordan is the president of United Auto Workers local 599.    He says GM’s investment shows workers are doing the job right. 

 


The city of Flint has started sending out layoff notices to city employees.
But so far, none of the notices have gone out to those who work in public safety.
The city of Flint is wrestling with an estimated 5 million dollar short fall in this year’s city budget.    The mayor wants the city’s unions to absorb about half of that deficit with double digit wage and benefit concessions.

Michigan retailers are optimistic that holiday sales will be better this year.

The first real test comes this week. 

 Thanksgiving is such a pivotal time for Michigan retailers many aren’t waiting for their customers to finish their turkey dinners.

K-Mart, Sears and other retailers plan to be open on Thanksgiving day.   Many other stores, like Banana Republic and the Gap will open their doors Thursday night.

Unemployment line in California
Michael Raphael / Flickr

The Associated Press reports that the state "will stop taking new extended unemployment benefit applications after Saturday because Congress has failed to renew the program."

Monument to steel in Gary, Indiana
Michael Puente / Changing Gears

By Michael Puente, Changing Gears

All this week, Changing Gears has been looking at reinventing Pittsburgh. We recently heard how Detroit has borrowed some of its ideas. In its final report, they head to Gary to see if this smaller Steel Town can learn from its industrial mother, Pittsburgh. They found old habits are hard to break.

Businesses in Hamtramck, Michigan
Ian Freimuth / creative commons

The city of Hamtramck is ratcheting up the pressure on the state to allow it to file for bankruptcy.

Hamtramck’s city attorney has sent a letter to Governor Granholm urging her to issue an executive order allowing the city to seek federal bankruptcy protection. The letter also says appointing an emergency financial manager would not give the city the tools it needs to correct its financial problems.

General Motors (GM) stock returned to trading on Wall Street yesterday for the first time since the company collapsed, declared bankruptcy, and was rescued by an infusion of fifty billion taxpayer dollars.

While Michigan has been focusing on diversifying its economy to make up for the loss of jobs in the auto industry, GM's return to public trading suggests that the auto industry in Michigan will continue to be a major economic player in the region.

Detroit entreprenuer Judy Davids
Sarah Hulett / Michigan Radio

All week we’ve been looking at the reinvention of Pittsburgh. Now, we move west to see whether the ideas that worked there can work in other places. One such city is Detroit.

Like Pittsburgh, Detroit has always faced a challenge in convincing its talented citizens to stay. Many business owners try to buck the odds and keep their businesses in the city, only to find the hurdles too high. Others find it is simply too daunting to head out on their own.

The New York Stock Exchange
Roland Weber / Creative Commons

Update: 5:10pm

The New York Stock Exchanged closed.  AFP News reports "GM stocks closed at 34.19 dollars, up 3.6 percent from GM's initial sale price announced on Wednesday, but below session highs of 35.60 dollars a share."

Update: 3:00pm

The Detroit News reports the GM executives who attended the opening day for GM stock on the New York Stock Exchange bought hundreds of shares in the company themselves.

GM North American chief Mark Reuss called it an emotional day, saying he was proud to work for GM and thanking taxpayers for giving GM "a second chance."

The News reports the GM execs will head back to Detroit "after today's events in order to attend a private employee celebration at the company's Renaissance Center headquarters."

Update: 11:04pm

GM  executives rang the bell and played a recording of a Chevy Camaro revving its engine to open trading at the New York Stock Exchange this morning. As of this writing, the stock, bought during the IPO at $33 per share, has jumped to $35 per share in trading. Here's how it's tracking next to Ford's stock (F): 

Jobless
Photo by Khalilshah/Flick

Michigan's jobless rate continued its slow, but steady, decline in October.  The state's unemployment rate in October was 12.8%.  It's the first time the jobless rate was been under 13% since March 2009, according to the Associated Press. The state's jobless rate in October of 2009 was 14.4%.

The national unemployment rate for October was 9.6%.

The city of Hamtramck says it will run out of money at the end of January, and officials have taken the unprecedented step of asking the state for permission to file for bankruptcy.


Bill Cooper is the city manager of Hamtramck. And he says he’s been a little surprised at the uproar his letter to the state has caused.


"That one little word got a lot of attention," Cooper said, sitting in his city hall office as the phone rang with a call from a reporter.


The word: Bankruptcy.

GMC SUVs in a car lot
user ep_jhu / Creative Commons

The Center for Automotive Research released a report today that analyzed the government bailouts of General Motors and Chrysler.

$80 billion was given to the auto companies. To date $13.4 billion has been repaid.

Tomorrow the GM "initial public offering" is expected to raise another $22 billion.

The reports authors say that even if the government doesn't get all of the $80 billion back, the government's investment will still have been worth it.

The report concludes:

Kent County Board of Commissioners
accesskent.com

Thursday morning Kent County Commissioners are expected to adopt a budget for next year that eliminates 56 full time positions. The cuts are part of an overall plan to keep county spending in line as revenue from property taxes decline.

2010 is the first year taxable value has gone down in Kent County. That’s the value property taxes are based on. Money collected from property taxes make up a little more than half of the county's general fund.

Timothy Geithner at the White House Correspondents Dinner in 2009
Jay Tamboli / Creative Commons

The Wall Street Journal is reporting that GM's IPO tomorrow could be a biggy:

General Motors Co. said Wednesday that it will increase the size of its initial public offering by about 30% to 478 million shares, which could make it the largest global IPO in history.

Global Entrepreneurship Week
unleashingideas.org

In west Michigan several organizations are collaborating on more than a dozen events to foster the entrepreneurial spirit.

Chevy Volt
photo by Jurvetson (flickr)

Motor Trend Magazine has named General Motor’s Chevrolet Volt the 2011 Car of the Year.

On its website, the magazine’s editor in chief said the Volt has “some of the most advanced engineering ever seen on an American production car.”

Zach Morris / Creative Commons

When Dennis Yablonsky took over Pittsburgh's main development group last year, everyone was telling him it was time to brag.

GM boosts stock price

Nov 16, 2010

General Motors says it’s raising the price range for its initial public stock offering.

The stock will sell for $32 to $33 per share.

That price range is about 14% higher than was previously expected.

GM didn’t give a reason for the increase but people who have been briefed on the sale say it’s because of high demand from investors.

The IPO is expected on Thursday.  The Detroit Free Press reports, "the U.S. Treasury is selling 365 million shares, which will reduce its stake in GM from 60.8% to about 40%."

Old General Motors Headquaters
Historic American Buildings Survey

General Motors (GM) will be in the news a lot this week, so if you sat out the GM story up until this point, here's a quick summary to get you caught up.

Today's General Motors is not your father's General Motors. The old GM went bankrupt. The company couldn't pay its bills (they had some big ones).

But instead of letting the whole company collapse, a court stepped in to reorganize the auto giant (under chapter 11 bankruptcy).

The court split the old GM in two.

Former GM Wyoming Stamping Plant
Lindsey Smith / Michigan Radio

Michigan Radio's Lindsey Smith covered the auction at the former GM Wyoming Stamping plant. The plant closed in June 2009 as part of GM's bankruptcy.

The auction was held on Wednesday and Thursday of this week. The auctioneers said they'll sell off anything leftover today.

Smith said it was easy to get lost as she took photos of the more than 2 million square foot building. Here's an audio slideshow she put together:

A handwritten letter from President Barack Obama
Gary Zimet / Moments in Time

A woman from Monroe, Michigan made news last week when she sold her hand written letter from President Barack Obama for $7,000.

Pages