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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.

(c) GM Logo/Photo Courtesy of General Motors

General Motors announced this morning that it made $2 billion in the third quarter.  The Associated Press reports:

The profit was fueled by GM's international operations and strong revenue from newly introduced car and crossover models in North America.

The automaker's actual revenue rose 36% to a little more than $34 billion.  This was the third-straight quarter in which GM was profitable.

Closeup of Chrysler Logo
Photo by Diego HC/Creative Commons

Chrysler says it narrowed its losses in the 3rd quarter of this year. The automaker reported a net loss of $84 million from July through September. That’s less than half of its $172 million loss in the second quarter. The automaker says this was the third quarter in a row of better-than-expected financial results.

Knight, Tom
Gerry Leslie / Homeless Management Information Systems

In 2008, the state estimates there were a little more than 86,000 people without a home. Half of them were families.

Amway is one of the leading, if not the largest, direct selling companies in the world. Three people trying to sell the vitamins, cookware and beauty products the company distributes sued an Amway subsidiary in 2007. They claim the company then known as Quixtar misled them about start up costs and how much money they'd make.

(Sarah Hulett, Michigan Radio)

If you walk into a gas station or a party store in the city of Detroit, you might see a flyer taped up, advertising "help with gas and lights."

But the phone number probably won’t connect to a charity program or aid organization. More likely, it’ll put you in touch with a fixer who will help you steal electricity or natural gas.

Trying to shut the problem down is a team of investigators from DTE Energy. Every day of the work week, they embark on what seems like a never-ending game of whack-a-mole.

 Time is running out again for many Michiganders living on unemployment benefits.

 Hundreds of thousands of Michiganders have spent nearly two years surviving on unemployment checks as the state struggles with a double digit jobless rate.

But time may be running out for those benefits.  Congress has passed several extensions but may not this time. 

Norm Isotello is with the state department of Energy, Labor and Economic Growth.    He concedes there is an argument that extended benefits may get in the way of people looking for work...but

The deadline for businesses to apply for 2010 tax breaks is Oct. 31
whiteoaksblog.com

Local approval is one of the first hurdles companies must overcome to get the tax breaks they want. The deadline to get tax breaks in 2010 is October 31st. That means there's a surge of projects in front of local city councils and commissions.

GM Renaissance Center in Detroit.
John F. Martin / Creative Commons

 Next month’s General Motors’ big stock offering is expected to be much less than at one time predicted.

The GM Initial Public Offering is expected to hit the market around November 18th.

 When GM initially started talking about selling stock, the speculation was that November’s sale could be easily one of the largest initial public offerings in history.   Perhaps generating more than $16 billion.

Now some analysts are predicting the GM IPO will collect only about $6 billion. 

aPorte works on one panel of his pencil drawing that won ArtPrize
artprize.org

A new survey shows this year's ArtPrize attracted more people from outside Grand Rapids than last year's contest. Preliminary numbers show half the people who participated in ArtPrize came from outside of the Grand Rapids area. Only 6% came from outside of Michigan.

A new report paints a dim picture of the bridges that many Michigan motorists use every day.

The Michigan Department of Transportation says one in four of Michigan’s 44 hundred bridges are either "structurally deficient" or "functionally obsolete"

Department spokesman Bill Schreck says despite millions of federal stimulus dollars spent in the past year on road improvements in Michigan problem bridges are still in need of repair. 

Michigan’s home foreclosure rate has stabilized, but is still much higher than the national rate. One out of every 98 homes in the state is in the foreclosure process.

Daren Bloomquist is a spokeman for RealtyTrac, a company that tracks foreclosures.

“In Michigan I would say the number one issue is unemployment. It's still there and so that's still pushing people into foreclosure. Until we solve that problem, you're still going to see an elevated level of foreclosures in Michigan," Bloomquist said.

Chevy Volt's plug receptacle
Charles Manley / Michigan Radio

Senator Carl Levin wants to scrap the government's Corporate Average Fuel Economy (CAFE) standard. Auto manufacturers must meet these fuel economy standards for their fleets, or face penalties from the government.

The Obama Administration recently updated the standards.  By 2020, automakers will have to reach an average 35.5 mpg for their combined car and truck fleet.

GM Renaissance Center in Detroit
Steve Carmody / Michigan Radio

General Motors (or should I say General Motors Holding Company) is planning to hold a public stock sale in mid-November. It will be the first since the world's largest company emerged from chapter 11 bankruptcy reorganization last year.

General Motors Holding Company emerged as the wheat. Motors Liquidation Company emerged as the chaff.

Inside the Chevy Volt electric vehicle
Charles Manley / Michigan Radio

The Chevy Volt got one step closer to the showrooms this week. The electric vehicle was unveiled to the media.

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