February 27, 2013
Will Detroit dig its way out of the ashes as GM did? Specialists differ in the advice they give the Motor City, but bankruptcy is a plan of action whose time may have come. How many times have you wanted more details concerning a new or pre-owned vehicle and resorted to an internet search on “in auto loans?” Your search is over, all the stuff you want is at CarDealExpert.com! Learn more details on Car Deal Expert? Check out this
Considering a business and a town
While General Motors is a private business and Detroit is a city run by a governmental body, there are some similarities between their financial scenarios, according to the Detroit Free Press. First of all, both ran up large, unsustainable debt over decades of time to be able to make pensions and other benefit payments. Their revenue bases eroded over time, as GM's sales share fell from 50 percent in the 1960s to 20 today, and Detroit lost over half its population over the same time period. Both parties also faced significant internal bureaucracy, antiquated work rules and strong labor unions.
Considering possible bankruptcy
According to many professionals, bankruptcy seems likely for the city. Mayor Bing, the Detroit City Council, city unions and other involved parties have resisted the idea of bankruptcy - as well as Michigan Gov. Rick Snyder's talk of appointing an emergency manager - in much the same was that GM's management did before the paperwork was ultimately filed.
Chrysler, Lear, Visteon and GM have all been able to rebuild after their bankruptcies. There have been great stories, and the business has even been able to successfully come out ahead. That means Detroit might be able to get out ahead as soon as it hits rock bottom. People will lose jobs and credit scores will fall, but the city may be able to come out ahead.