How are the Detroit Three Doing Amid the Bankruptcy of the City?

It's hard to talk about Detroit and not feel a little saddened. This once glorious city, a backbone of America's economical growth, and home to the biggest automotive brands, was earlier this year forced to file for bankruptcy. The reasons for the city's decline are many and some experts trace them as far back as the 1970s, so it's impossible to dissect all of them here. Instead, let's focus on the "Big Three" or "Detroit Three" - Ford, Chrysler and GM - and see how these Detroit brands are faring after the crisis.

Ford

Ford will forever remain one of the most iconic automotive brands in America's car manufacturing history. From the Model T to the Mustang, Ford's footprint can be seen in a lot of places, but the 21st century hasn't exactly been the golden age for the big Detroit brand. After two strong decades of acquisition, Ford Motor Company saw itself pressed to sell some of the brands under its cap.

In 2007 it sold 90% of Aston Martin and in 2008 it also parted ways with Jaguar and Land Rover. That same year, Ford was the only company out of the Big Three to refuse a government bailout loan. The result was a reported record loss of $14.6 billion. The Detroit-based car maker continued pushing on, though, and today it is confidently growing in net profits and its managers think the future of the company will likely remain unaffected by the city's bankruptcy. Of course, that wouldn't have been possible without the rigorous restructuring and job cuts and other cost-cutting measures. Today, Ford is once again doing well at home and is even threatening to outperform GM in China, reporting a 61% increase in September sales.

General Motors

General Motors is another all-time American favorite, giving birth to such popular brands as Chevrolet, Cadillac, Buick, GMC and Pontiac. For 77 years, it stayed on the top of the global car manufacturing chart before it was toppled by global competition, mostly from Asian brands. By 2008, it became apparent that GM could no longer compete in a global economy, due to higher labor costs and the fact that the U.S. has stricter environmental laws than most other countries. GM discontinued some of its not-so-well-performing brands, such as Pontiac, Saturn and Hummer. The last one is especially understandable since GM has been criticized for its over reliance on fuel-inefficient trucks and SUVs. In 2009, General Motors filed for Chapter 11 bankruptcy and was heavily subsidized by the government. The general sentiment seems to be that the bailout was a success as GM emerged from the crisis and no longer had a negative balance sheet. Yet, the government intervention might have damaged some of its reputation, especially among its hardcore American fans, usually opposing the government meddling in business affairs.

Chrysler

Chrysler, now owned by Italian car manufacturer Fiat, is the last of the Big Three Detroit brands. Some of the brands under the Chrysler umbrella are Dodge, Ram and Jeep, and of course, Chrysler models, typically geared for the upscale market of luxury cars. The recession didn't spare the auto manufacturer either and in 2009, only a few months before GM, it also asked the government for help through Chapter 11 restructuring. That same year the billions of government aid seem to have helped and Chrysler became predominantly the property of the United States Treasury. Two years later, in 2011, the automotive company managed to repay the majority of the $8 billion loan. That same year Chrysler was purchased by Italian car maker Fiat. Yet, despite being foreign-owned and despite the Detroit's bankruptcy, Chrysler continued its Imported from Detroit marketing campaign and plans to continue to invest in the city and help its ailing economy. And so far the partnership with Fiat seems to be yielding results.

As you can see, Motown might be financially in decline, but its car brands are faring well. While we are unlikely to once again see the city enjoy its previous glamour, other companies are starting to turn a nostalgic look towards Detroit and investing in its future.

Automobile dealerships, manufacturers and even repair and body shops are part of the industry's recovery. Make sure you are promoting yourselves with our USB flash drives for automotive industry.