economy

Roger Hart / Auto Week

Editors at Auto Week perused the offerings at the 2011 North American International Auto Show and named their top picks.

Executive Editor of Auto Week, Roger Hart, said the show had more than two dozen new models on display, and most had one thing in common:

 "There were no fancy, pie-in-the-sky, dreamlike concept cars. Nearly everything billed as a concept looked as if you could buy one tomorrow at your local dealership and drive it home."

Here are their picks:

BEST IN SHOW: Porsche 918 RSR Concept

Flickr - Ruthanne Reid

The headlines for the Michigan-based Borders Group Inc. have not been good lately:

And my personal favorite speculative headline:

It seems everyone has been on a death watch for the bookseller.

Today, Julie Bosman writes in the New York Times Borders may be close to a financing deal that might help the company reorganize. From the article:

Borders executives told publishers that they were close to securing refinancing from GE Capital and other lenders, these people said, speaking only on condition of anonymity, and that the company intended to reduce costs, improve liquidity and expand marketing efforts, as well as sell some assets.

Earlier this month, we  posted on a Reuters report that said Borders was working with publishers to work out a deal. Borders is in debt to the publishers for past shipments and the company reportedly wants to restructure that debt as a loan.

Meanwhile, the company is cutting costs. The Detroit News reported yesterday that Borders is closing a big distribution center in Tennessee:

Borders will consolidate the processing and delivery of books, movies, music and other products to two distribution centers in Carlisle, Pa., and Mira Loma, Calif. It is part of a long-term effort to cut costs and make the distribution of products to bookstores more efficient, Borders Group said in a statement.

So will borders survive? What would your future headline say?

Steve Carmody / Michigan Radio

At the Detroit International Auto Show, domestic automakers are celebrating a comeback of their industry. GM and Ford both saw profits last year, and the car makers are expecting a good year this year.

As more proof of the comeback, Bill Vlasic and Nick Bunkley report in the New York Times about profit-sharing checks that are expected to go to GM and Ford workers:

The two big Detroit carmakers will announce profit-sharing checks this month for their hourly workers, perhaps the largest in a decade, company officials and industry analysts say.

The checks are expected to top out at $5,000 at Ford, less at GM.

They report these checks "would be the biggest payout since the $8,000 checks that Ford handed out in 2000." Chrysler, the report says, is not expected to issue bonus checks this year.

Lindsey Smith / Michigan Radio

Motors Liquidation, the official name of “old General Motors”, has a buyer for its 2-million-square-foot former GM stamping plant in the Grand Rapids suburb of Wyoming.

United Van Lines

One sign of a tough economy is the sight of a big moving truck out in front of the neighbor's house.

And according to one moving company's study, Michigan has seen more of those moving trucks leaving the state than entering the state.

In it's 34th annual "migration" study, United Van Lines says Michigan ranked second in outbound traffic in the country.

user dgtmedia-simone / wikimedia commons

Chrysler made the case for its self-proclaimed "resurrection" at the North American International Auto Show.

The company put on an optimistic show as it debuted 16 new Chrysler products. The automaker had only a bare-bones presence at the auto-show last year.

Sergio Marchionne is Chrysler's CEO. He said the display shows the company is once again a viable competitor in the North American car market:

The Wall Street Journal and the Detroit Free Press are reporting that Ford plans to announce the creation of 7,000 more jobs at today's auto show. From the Wall Street Journal:

Ford Motor Co. on Monday is expected to announce it will hire 7,000 workers in the U.S. over the next two years, according to a person familiar with the matter. Ford President of the Americas Mark Fields is expected to confirm the news at the auto maker's presentation before the North American International Auto Show in Detroit, this person said.

flickr - photodu.de

The Grand Rapids Press reports that AT&T plans to cut 110 union jobs in West Michigan. The paper reports:

The West Michigan job losses are part of a total of 371 jobs being eliminated by the telecommunications giant in Michigan, said Ryan Letts, president of the Communications Workers of America Local 4034.

Letts is quoted as saying they saw the job cuts coming because the telecommunications industry is changing:

flickr - brewbooks

Sales at Borders Book stores have been slipping for several years as more buyers go to places like Amazon.com to find their titles, and as more people move into the digital reader market. Last month, the company reported that its third quarter sales were down 17.6% from the same period a year ago.

So the company is struggling to find a way to pay its bills. One way it's trying to preserve cash is to suspend its payments to publishers.

screen grab of YouTube video

Columbus Dispatch videographer Doral Chenoweth III says he filmed Ted Williams on a whim.

"We run into these guys at the exit ramps and we pretty much ignore them," said Chenoweth, who was en route with his wife to the grocery store when he first saw Williams. "This guy was using his talent."

Ted Williams was standing on a street corner near a highway exit ramp in Columbus, Ohio holding a sign that said "I have a God-given gift of voice. I am an ex-radio announcer who has fallen on hard times. Please any help will be greatfully (sic) appreciated..."

And when you hear his voice, it's uncanny. It sounds as if you've just stepped into a commercial radio or television broadcast. It almost sounds fake. Listen for yourself:

The state’s new economic development chief says the “Pure Michigan” tourism campaign should also be used as a tool to grow and attract businesses. Rick Pluta, Michigan Public Radio Network's Lansing Bureau Chief sent us this report from the Capitol:

Michael Finney was confirmed as the new CEO of the Michigan Economic Development Corporation by its board of directors. Finney was Governor Rick Snyder’s choice to lead the agency.

Finney says the “Pure Michigan” campaign is already a success story in selling the state as a tourist destination:

So we want to find ways to use that as a brand that will represent both tourism and business in our state. We think it’s a great brand and we intend on exploring that further as we go about our business of effectively marketing Michigan as a desired place to grow a business.

Finney says that can be done using free media and without increasing the Pure Michigan ad budget. He also says there will be a shift in the focus of the state’s economic development efforts toward helping entrepreneurs who are already in Michigan grow their businesses and hire more workers.

Online sales are reportedly up about 12 percent this holiday shopping season. That could be bad news for Michigan tax collectors.  Michigan residents are supposed to pay sales tax on items bought online, but few do. 


 Caleb Booth is a spokesman for the state Treasury Department.  He says the state lost out on $328 million dollars in uncollected sales taxes on online purchases in 2009. 

Sign of Flint Police Headquarters
Steve Carmody / Michigan Radio

The Flint Police Department is closed on the weekends following the latest round of officer layoffs.

The Flint Journal reports new office hours took effect Saturday, the day after 20 police officers were laid off.

Flint Mayor Dayne Walling laid off a total of 66 police officers this year to cope with a multi-million-dollar deficit. The city also made other cuts.

(Written by Eliot Johnson, and Zoe Clark)

Every Michigan resident is familiar with the economic challenges facing the state. From job losses to foreclosures. The challenges we face are daunting. No single person can fix all the broken pieces of the state. But Michigan Radio has been on a quest this year to learn about the little things each of us can do to make a difference.

All this year, Michigan Radio's Morning Edition Host Christina Shockley has been talking to people from across the state about ways to improve Michigan. We call it the Three Things Series because we asked each person for three ways that ordinary Michiganders could help the state.

The response has been amazing, generating hundreds of ideas for each of us to consider and act upon. From recycling to community organizing to drinking more Michigan beer, the ideas we've received have been a diverse collection of potential ways to improve both the state and our attitudes towards it.

Today, we concluded the Three Things Series with an hour-long call-in show. It will air again tonight at 8 p.m., or you can hear it here:

Boxed up child motorized ATV in trunk of car
Jenn Forman Orth / Flickr

Michigan retailers were optimistic that this would be a better holiday shopping season than they’ve had the last few years.

And so far, those expectations appear to be warranted.

The National Retail Federation upped its prediction for holiday sales from a 2.3% increase to a 3.3% increase over last year.

Foreclosed house
Damon Duncan / Flickr

Foreclosure filings in Michigan fell 20% between October and November, but most of the decline came in homes in the final stages of foreclosure according to data released by Realty Trac, a group that calls itself "the nation's leading online foreclosure marketplace."

The pace of homes entering the system remained relatively unchanged.

sign in Flint, Michigan
Steve Carmody / Michigan Radio

Just a day after tying a record set in 1986, Flint recorded its 62nd homicide of the year. The body of a man was found slumped over in a car parked on a city street.

At a news conference this morning, before the latest murder victim was found, Flint Mayor Dayne Walling blamed the spike in violence in his city on the loss of jobs.

Michigan Governor-elect Rick Snyder
wikimedia commons

Governor-elect Rick Snyder told a crowd in Detroit today that Michigan will beat analysts’ economic growth expectations in the coming years.

Snyder spoke to a group of accounting students at Wayne State University. He recounted an experience at a recent National Governors Association meeting.

Snyder says the investment firm Moody’s ranked each state for projected job growth. He described what he saw when he opened the folder for Michigan.

"The first number from 2009 to 2011 was 47," Snyder said. "The number from 2009 to 2014 was 50."

But the governor-elect called those projections "a piece of fiction."

"We’re going to beat the living daylights out of that number."

Snyder added that he plans to use his background as a CPA to put Michigan’s finances in order.

Downsizing Detroit

Dec 9, 2010
City of Detroit
Pablo Costa - picasa user

Detroit is a city built for 2 million people, but now has around 800,000. It's ruins have become famous. And some people, like artist Lowell Boileau, have said the problems Detroit faces are like a "slow moving Katrina."

Detroit Mayor Dave Bing is leading a plan, called the Detroit Works Project, to shrink the city down to size. To make the city's 139 square mile footprint more manageable for city services like police, fire, sanitation, and water.

Jennifer Granholm
flickr user auberon

3 million jobs in 3 years. That's what soon-to-be-former-Governor Jennifer Granholm called for in her article in the Huffington Post.

Granholm calls for a "Jobs Race to the Top" modelled on the education "Race to the Top" program.

Dangle large sums of money in front of cash strapped states and see if you can get them to change their policies.

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