🇺🇸 Collapsing Auto Industry in Detroit | Fault Lines
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- Опубліковано 2 сер 2024
- As the US auto-industry continues to teeter on the verge of collapse, Fault Lines visits Detroit - Motor City - which, understandably, is one of the hardest hit places by the downturn.
But this is not the first time the Michigan city has faced hardship. Even before the financial crisis exploded, Detroit had the highest home foreclosure rate in the country.
It also has highest unemployment rate of any major US city and in the auto sector alone, one in three jobs has vanished since the recession began.
In Washington, president Barack Obama's auto task force is re-engineering the fates of General Motors and Chrysler, and the millions of people who depend on their survival.
Avi Lewis meets the people who live with the consequences of the deals struck in the nation's capital.
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I was in the high school class of 1975. I saw this coming, the end of factoty jobs. Here in Cleveland, people thought working at Ford, Chevy, ect. was where they would retire from, not I. I went to trade school, and became an Electrician. All my friends in the auto and related manufacturing industrys wasted money on fancy houses and expensive cars, and lifestyles they could not afford. I bought zero new anything, except in 1979 I bought a brand new Harley Davidson, which, after 40 yrs is still my biggest investment to date, and it runs great right now. I am 62 years old now and semi retired at $50 dollars an hour, as a Master Electrician. Fools ! How could you not see the death of the rust belt ?? How could you not see that your new car was a waste of money, when my 15 year old truck got me to work every day ?? It's not the corporation's fault, it's the short sighted American's fault fou wasting your future by denying your responsibilities to your familys.
Great sayıng
I think even with a dying mobile industry, the worker should have at least save up some money. But no, that clearly doesn't fit the america dream.
Detroit is like Venezuela, relying excessively on one market alone.
What does that statement mean?
Good point. I hope this is a lesson to us all.
Saudi Arabia too
Over dependence on one sector is bound to lead to catastrophe sooner or later. Yes.
So the general message of this video is "subsistence farming will save Detroit"?
Why don't you offer your solution idea instead of sarcasm
@@davidmanx You send in the police, fix the crimes, businesses feel safe moving back, small businesses flourish, and with new corporations moving in, you have higher employment there. Fixing Detroit is as simple as letting the police do their jobs, something that the politicians refuse to do nowadays.
@@varusername Simple? I think you really don't understand the problem. East Asia, especially China and now Vietnam, initially offered cheap labor, but now they offer cutting-edge mega infrastructure that benefits the logistics costs of manufacturers in general.
Meanwhile, the USA has super precarious railway lines that led to a train of toxic petroleum products being derailed, leading to the evacuation of 2,000 people and the contamination of a river all the way to Canada.
@@guilhermea2346 youre right, the problem isnt simple, but the solution is. You’ve named a number of reasons that things went downhill in Detroit, but the biggest reason that they won’t go back uphill is the crime. Right now, you’re seeing a “revival” of Detroit, where businesses are moving into the downtown area as the crime rate there is going down. Also, businesses didn’t move out of the lower-crime downriver area despite your argument that it had something to do with petroleum pollution. On top of that, if it was the case that the issues in Detroit were largely a result of the movement of industry and manufacturing to China, that also wouldn’t explain why similar workers are doing just as well in metro detroit (especially on the western end of the metro area) as they were before Detroit got itself into its current state.
Ultimately, I think the answer’s clear even if the problem isn’t: fix crime. This year has been the best testament to the police solution as they pump police into the area (especially downtown) and we see crime fall to early 1960s levels
At the time of the government bailout they were still hellbent on gas guzzling SUV's. Ford were the only company not with their hands out. $70,000 for a new truck and subprime lending. Now there's a combination bound to succeed!
In this fast changing world, if no new innovations or gadgets thrown in for the worth of the asking price, sooner or later it will be eclipsed again by others
Times change, not just in Detroit, but in cities and countries all over the world. Just like companies you have to recognize when the good times are over and you need to do like the companies and move also. I sure there are schools that teach the Chinese language..
It will never get better. GM was bailed out yet car prices are lubricous. Chrysler, Ford and GM are taking advantage of the consumers.
Cars are expensive to pay UAW PENSIONS
FrankReynolds, Paddys Pub, CEO no just cryhsler
The government is quick and good at pointing fingers on others
Is that a solution
At one time, people where proud to be from Detroit. It was the top 5 largest cities in the US. Just think for 75 years+ practically all cars where from this great city and State.
Democrats killed you bra.
@@stevenking2980 No it was the crappy cars and excessive medical and retirement expenses.
@@stevenking2980 that's what they want you to think. Once you start thinking for yourself and doing research, you'll see that it was a crooked Auto industry and there ever-growing quest to save money which killed Detroit.
Now your number one in murder! Your still in first place, just not in a preferred category.
@@jdsmith556 Nah, that's more Los Angeles than Detroit.
That lady is amazing for insight
The economy has fully recovered since this video was made, and while production most left Detroit for greenfield sites (there's no reason to locate in a state with such severe winters) even that city is turning around. Economic problems are CYCLIC.
Please do not perpetuate the myth that there is no manufacturing left inside the city or in the surrounding environs. It is a falsehood. Most shrinkage took place in the eighties over thirty years ago. Most left in the seventies. There are still three assembly plants either completely or partially inside the city borders and six more within thirty miles of the city limits. There are two full service steel mills, three major engine plants, four oem stamping facilities two glass factories, a huge oil refinery, and dozens of parts plants either in or near the city. There is no denying that the industrial bade has shrunk since the eighties but Detroit still makes cars and car parts.
So much easier to build anything in a green field site. It's why Ford tore plants down instead of reworking old ones. To work within the confines of an old structure is crazy.
Aimee Webber There is risk in answering this question the wrong way. So I will preface. It is not about urban race. It is about urban culture combined with an essentially broken city education system. First. Culture. There have been a dozen or so generations of inter city Detroiters who have been raised in a culture of non mainstream employment. That’s a nice way of saying welfare of crime. Socioeconomic issues like drug abuse, female only head of households, violence and a lack of effective public transportation system combine with a second rate school system to create an environment in which employment is not valued. You bring up a valuable question. Maybe the most important question that Detroit urban leaders have to address. I am not black and do not propose that I am an expert on African American culture but it is clear to all but the blind that something is wrong. My wife taught in the Detroit Zoublic School system for
Aimee Webber Sorry. Sent by mistake. My wife taught in the DPS for 25+ years. She teaches at Wayne State now. Her opinion is that the number one long term priority has to be education. The schools have to teach practical skills, demand commitment from students and parents and equip graduates to succeed. I love that downtown and the city core is coming back but it will fail if residents do not equip themselves to join the resulting boom in jobs. Good question. No simple answer. Only hard work.
If the Big Three used a "Commonality of Parts" they Could compete.
People should not buy a vehicle unless they pay cash.
Unfortunately most do not have the cash to pay off the entire vehicle, even most of the used ones except ones that are over either or both over 8 years old and/or have 100,000 miles on it selling under $5,000.
It said the auto manufacturer GM has healthcare costs of 1,500 per vehicle. Seriously that is nothing to them especially when cars cost 40K at the very least and mostly 60k so that should be nothing. Cut executive staff pay!
socalgirlism true! They blame workers went to commie China and raised prices of all the cars. NAFTA opened the floodgates to use cheap oversea and Mexican people as slaves. Republicans and Democrats both did this in 1996.
How can you have a successful making industry without a metric system?
Every video here on You Tube about Detroit is depressing. Why do retirees from GM continue to get health benefits? For that matter why do any retirees from any big corporation deserve health care after retirement? Work for the rail road, post office you get tons of money when you retire.
I disagree. Pension from post office, rail road, and other government agencies depends on how many you years you work.
because you earn your retirement PENSION and make your work place $$ / better and grow not ss in the usa which is a hand out line / beggar line
What???????
Let's hope that you're also speaking about yourself when you say this.
I grew up in LosAngeles, far far away from brick bldgs, gothic architecture and car manufacturers. LA may not be in the best shape either but I will say we learned to network, do what you say, and leave it better than when you got it. (maybe not all of us, but I am blessed)
If I was born in Netherlands in 1950 I would try my hardest to get through school and try to start-up my own vehicle manufacturing company in 1970. I would want to make Sport Utility Vehicles, Trucks, Books, Equipment, Firearms, Tools, and so on. I would make them able to go off-road and also reliable too.
I think too many laws and regulations caused GM to move out of the USA. Also those union jobs is also what probably killed them. Sadly the chevys have been getting very expensive with foreign parts
GM moved out of the US? Man! Thanks for telling me that. The 7 GM plants that I visit each month and the other 11 that interact with the US are a mirage!! GM did not leave the US. There are five assembly campuses, three engine plants, two transmission plants and four stamping facilities as well as 14000 development and 3500 administration employees in Michigan. I have been a GM employee for over thirty years. Where do you come up with this nonsense?
can't you see how crazy we are about the renegade...
It is sad to see the decline of such a once prominent industry.
When the government steps in and tells private industry, who and how many to hire and they cant be run off and the employer has to hire another 20% to make up for the first 20% that wont produce and cant be run off !dont do much for the bottom line ! USUALLY WHEN THE EMPLOYER DONT MAKE A PROFIT NOBODY HAS A JOB LONG !
this is very painful to watch god bless yous all the way from new zealand
I'm wondering how long the growing season is in Detroit?
Time to re-invent.
The only place "success" comes B4 "work" is in the dictionary! Imagine a surviveable world.... Times a ticking...
Chrysler CEO made 10 times more than Mercedes CEO when they were taken over.
You mean FIAT CEO's. The Jeep Renegade typically is a FIAT with a Jeep coat.
Home Depot's CEO walked away with almost a quarter BILLION in severance and stock options, when the board voted him out.
....and we give these companies corporate charity in the form of tax dollars/tax breaks, because they're ..."too big to fail".🤪
This video is old, you know how I can tell? Because there were Pontiacs in the GM showcase. That means that this video was made in 2008 it's 2013...
listen up! make small camaros, small chargers, challengers and buicks ctv's and put clean Opel ecotec motors in it. then set them on a boat and ship them to europe. that will sell. that has worked in the past also with ford.
That's what FIAT did with Chrysler. The Jeep Renegade is a good example.
6:40 *WHAT?!* i know this video is old but how was that even possible?!
lots of space to raise cattle and plant crops for sure
It’s same around the world ,factory s. From developed countries moving to countries where it’s cheaper to manufacture products.
Well when unions demand higher pay something’s got to give
I wonder if the public housing was nice to live in public housing in Baltimore wasn’t the best, but the lady in this video seems like she really liked living over there. Did they build new public housing or did the people leave with the closing of the plants ?
chevy vega, chevy citation, pontiac aztec, cadillac cimmeron, ford pinto, edsil, gm 8/6/4, gm diesel converted from gas engines, and pure lack of quality control. Tell me again how the us car companies are failing????
Recipe for disaster is plain and simple. 1.over paid top executives and investors couple with stocks holders 2. Praising so'called Car-Zar's who are really no more than one hit wonders.3.A city relying soley on one industry. 4.arrogant executives blinded by greed disconected from the reality of the product. 4. workers to afraid to make enough noise when they clearly know the troubles ahead. 5. the city of detroit cashing in and bailing out of its people. 6.Cars that provide but dont inspire.
lol "we're not begging, we're not crying"... looks like it to me... uaw need to remember when they had it ALL they didnt care about the future no its "the government isnt doing enough" face it they didnt care then their not gonna care tomorrow
Marcus they didn't care when all our jobs went over seas. They didn't care when their high wages where used by the news media for the high cost of American labor which started this illegal aliens coming across the border then NAFTA and freetrade. I don't feel sorry for these people one bit.
I work in the steel industry, well I am a welder. And the amount of garbage we get sent to us from China is unbelievable, company's here will get parts and steel structures made in China and when they come back more than a quarter of that product needs to be fixed by company's like where I work... the U.S and Canada has the industry, standards, knowledge, skills, WHY are they trading cheap labour for quality? It boggles my mind.
I don't blame China or Mexico for this. Supply and profits allowed this to happen. Capitalism is about optimizing the corporate machine for profits and fine-tuning operations at the expense of the working class.
When the government talks about tax cuts, it's not for you. You might sit there and think it's going to help you but it won't. A companys never going to invest more in its people just because.
People accepting an inferior product thats cheaper to manufacture but costs the customer more is the real shame.
Most people might buy a hammer for $10 made out of the country, why pay $50 for a locally made hammer? Sure it might break but you could buy 5 of them!
You get what you pay for. It has nothing to do with china. China also manufactures iPhones and other high end stuff that last decades. But they cost more than what american companies are willing to pay. So the fault lies with american companies who want to prioritize profits over quality. If they are willing to pay more then they would get good stuff from china.
GE used to have a factory in my town, those people had the best highest paying jobs in town, but when the plant closed you'd swear someone cut off their hands. They couldn't make their monster truck payments and wailed like babies. The city actually paid to re-train some of them since they acted so pathetic..
Direct results of the corporation get themselves focusing only on share holders value and look down upon consumer's need. Now with self help the ex-employee turn to 'Sufficiency Economy' - King Bhumiphol' s initiatives to help surviving Thailand during Tom Yum Kung Economic crisis. May be... President Obama can apply the same concept to recuperate the US auto Industry. Best of luck. We shall pray for Your success.
What were the workers like? Were they coming to work? Was there a lot of FMLA people? were there people calling their supervisors names for asking them to do their job? Were the workers working while at work or were they making excuses? Just wondering because I know for a fact that doors were closed because of this kind of thing too. And I know there’s a lot more factors but I wonder about the workers as well.
What's the deal with that press at about the 6:00 mark ? No guarding ? Or does it have a infrared guard ?
And We are Back again with the same old ship 🛳 sailing into the 2020
I can dig it!
USA THE NEW THIRD WORLD
Looks like it
SVS It’s not just Detroit either , you could be right !!
It is more like an all worlds country!
Its funny how ALL comments are disabled for any of the Mexican NAFTA so called success stories.
There are forces always censoring certain comments
jer fortin zAnn
lol Yep, it is a well known fact that pushing for limitless wage increases will only imrpove a company's ability to expand and conduct research into future products. Hence, domestic auto manufacturers were able to quickly react to demand. Also, let them all go bankrupt in the name of worker rights. Who cares? It's not like you need the companies to produce products in order to pay worker wages. Everyone knows that the unions pay everyone's wages. :)
the motor city casino is really good for kids and will send them a good message
Grace Lee Boggs rocks!
The dream has been destroyed and now we to make a new dream. Who, where, when is the unanswered and what are we going to do is the question. This is a beginning.
This is what happens when you base an entire economy on one thing
If the people sit around for the consequences of government deals, for their rationale, they will sorely be disappointed. Especially since Obummer is in charge. Did the moderator ever wonder why the percentages of failure or success was so low..? If the government had placed BIG TARIFFs on Toyota & Nissan, things would be different. But, the Congressman just held out their hands & away we go into the unknown...
Also the huge gas swallowing vehicles was the cause of it when gas hit $4 a gallon and no one was buying them.
GM is the umbrella corporation for a number of brands, but their basic problem still remains, in that they have primarily made cars mostly for the American market, and have ignored the development of models and styling, and now have finally woken up at the 11th hour.
They can rely on a pension, Soc. Sec. and Medicare like me.
Sure high paying jobs are gone in the automobile industry but and BUT executive staff I am sure are making millions and millions and millions of dollars per year
Mr_ NutZ What jobs are those? UAW employees starting wage is around $21.00 an hour with benefits rolled in. And why the reference to apes? These are people trying to support families. How much time do you spend in assembly plants? I have spent almost everyday for the past 40 years helping build cars first in the union and then as an engineer. These are good people and whats left of a massive working middle class. Shame on you man.
THIS ARE ALL OLD VIDEOS OF 2009 !!
12 years ago
Dope
Detroit won't dig out.
It is what it is. Who'd move their business there? Urban farming? Yeah, that's hopeless. Move while you still can.
Cars are to expensive and ugly to boot. So there is no surprise here. Oh and you can't work on them to improve HP.
TO BAD IF THEY COLLAPSE. I WOULD LOVE TO WORK ALSO IN GM PLANT AS A PAINTER
It's "TOO" bad. You are making yourself look even sillier.
Ah yes motor city...building of lights growing from a dump.
It's half-a-century after the Moon landing. I have not been to an auto show in over 40 years. I have never owned a new car. Notice that economists do not talk about what consumers lose on depreciation every year on automobiles. The laws of physics don't change style.
16:27
For who exactly?! Anything 'new' coming to Detroit is going to cost money and the poor that live there won't be able to pay the roi demanded by those who brought it there. Or put simply: new has yet to not mean gentrification!
Ford was the only one who hasn't fallen apart
Copart salvage vehicles are causing inflation in America. For over two decades salvage vehicles have progressively been swarming our highways and streets without notice competing with the vehicle industry. Having hundreds ofthousands of people buying salvaged vehicles for profit devalue the market and has been a rising concern. Mexico car industry has crashed in regards to inflation due to Copart salvage vehicles and the united States is Next.
Tell me what's more important? The sanctity of people or the sanctity of a city? The people of Detroit have gone else where. They find the region unbearable to remain in. What's the problem?
I think it was both
Chevy, Buick ect WERE diffident companies till they got into 'financial difficulties' i.e. what was being spent didn't match what was coming in. Rolls Royce and Bentley were the same as were Daimler and Jaguar, and needed into be bought out under the umbrella of a bigger company. But they all had independent origins as individual companies, and all had individual designs to make them different from one another.
Sharp eye, Jimmy ward. If true, does it mean that al J is using old data and that MoTown is healing? Hope so.
why did white flight occur in Detroit has anyone ever studied that issue?
The ONE Common denominator in every democratic city
what people dont have on their radar yet is that we have been so good in building machines that help us, we dont need all these people. of course greedy corp and lousy politicians are part of the problem, but as the lady says, u need only a fraction of people to build a car. a completly new model of organizing our lives/economies, maybe a Basic income guarantee, maybe something totally different, is needed for this century.
Look. Like fallen USSR 1990
I know, but companies don't wake up one day and think, "This sucks, hey, why don't we throw our lot in with a bigger company".
This is a pretty old video. GM doesn't make Pontiacs anymore.
Wow
I dare say so, but when a company gets into financial trouble like Buick did, or through share dealings like Durant did for Chevrolet its moot. They are all got under the GM umbrella. And big monopolies seldom work, as there is no competition to drive innovation, hence the line of rubbish cars Americans were offered over the decades.
Some people have to pay for fuel, we are not stealing Americans!
Capitalism works best with Christian Ethics at its base, the myth of the American dream without an ethos of sharing and caring for the whole community is pretty much at the root of the problem .
It is really bad but comparitively it is the best place than China or any other country. Being poor in America is not like being poor in China but Americans are not accustomed to being poor. What helps America right now it its ability to print money and pay its finincial obligations.
we do not have beautiful cars.
I think this report is old
i buy my toyota because its made non union in kentucky by american workers. its engines, cars and research is in the usa. toyota supports the average americans by making a great product. not like my brand new f150, 1998 which needed new ball joints at 33k.
The big 3 and mechanic racket
gm pays its ceos more than there worth
wrong stupid,the engineering is in Japan,you just support a bunch of stupid hillbillies ,real Americans don't sell out their country.
If I was the prez I would have the fed buy all the empty Lot's home and business. Demolished it and would have created the largest indoor outdoor hemp facility in the world and get business that can make hemp based products and plastic. Try have the facilities running off of alternative sources eetc Detroit Hemp City USA
Honestly and truely, if enough people call their senators, it will make a difference.
They use statistics: every phone call, fax, petition signatures, letter is counted as if 13,000 people felt the same way -- do it!!
Yea this was during Obama, things have changed for the better
I blame the Union's
Gm is moving to China but when they have trouble they run to the US taxpayer for help something that bothers me quite a bit.
THEY need to grow lots of herbs
Hey ,Detroit isn't doing to bad they have a mono rail! 6:47-:6:55!!!! Whats so bad? Having a mono rail is like a mule with a spinning wheel. See relevant Simpson's episode for the rest of the quote.
1st. You telling me you work for GM for over 20yrs and you didn't save no money? 2nd. How you went bankrupt after 1yr GM close? Ppl don't need a job they need to be financial education.
With everything a uaw's. Makes $100.00 a hr.
Chine 3 hr Mexico 2.50 hr.
Hello! It not rocket science !
Wow , $100 an hour , I need to ask Chrysler for my back pay .
Globalisation has good and bad sides, but rarely does the bad affect developed nations like the US. Ultimately, though there is little you can do in a capitalist global economy
@shyF0x It's wrong and Americans deserve better.
Hi
I thought Obama was the great Black hope. CHANGE IS COMING. CHANGE IS COMING. Remember those words from his campaign? Obama was nothing more than a smooooooth talker. And you all sucked in to it.
"Typical politician. All talk, no action." --Trump in presidential debate.
Well, if GM and other auto makers would build cars for transportation and not to be entertainment centers with thousands of dollars added onto each vehicle with unnecessary gadgets thrown in just for the sake of dazzling brain-dead consumers then maybe they'd sell more cars. A car as a transportation entity - too radical, I guess.
howabout turning all these ex-vehicles manufacturing space into food manufacturing facility like vegetable factories. it can grow to become a producer of food using modern technology.
You got that right....The auto companies have been making record profits for the past 9 financial quarters. ord, GM and Chrysler are pouring a bunchof money into their facilities tooling up for new models. Michigan finally has a balanced budget with a modest surplus in the rainy day fund.
The unions ruined the American auto industry
@Donald Malcolm Wilson definitely, this video was made either 08' or 09' . Now the American auto industry is booming car sales are up more than 300%. Detroit is in a huge process of rebirth, the city is being rebuilt as we speak.
4:24 gold watch, guy needs help...pffff
This Grace Boggs character has been a system shill and subverter for 50 years, then
fault??