It’s Automakers’ Turn to Bail Out a Government

By on

Reuters reports GM, Ford, and Chrysler are contributing cash to help the struggling city they’re headquartered in stay afloat.

Detroit’s running an annual deficit of $100 million and has $14 billion in debt and liabilities. In recent months the city’s been responding to emergencies with half the ambulances it should have, because many of them are falling apart. Several have logged over 300,000 miles, and they break down regularly.

It’s so bad that a newly appointed emergency financial manager – a bankruptcy lawyer – has been given most city officials’ power to reshape its government. Kevyn Orr will be able to change union contracts, lay people off, and combine or abolish government departments.

One thing he won’t have to worry about, hopefully, is emergency responders. The car manufacturers are joining Penske, Blue Cross Blue Shield of Michigan, Quicken Loans, and other local businesses to replace the decrepit fleet of paramedic and police vehicles.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check out our hottest deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,245 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.