Imported From Detroit

July 18, 2011 | In Makes |

The downward spiral of the Detroit auto industry finally reached bottom in 2009 when General Motors officially filed for bankruptcy. However, assisted by the $30 million government bailout, the Detroit auto has experienced an unexpected resurgence. A recent White House report explained how the car companies are now profiting from sales and creating job opportunities again.

Increasing Profits

The three major Detroit car manufacturers (General Motors, Ford and Chrysler), known as the Big Three, reported positive quarterly net profits in the first quarter of this year — the first in seven years. In fact, the companies are doing so well that they have been already been able to pay back their government loans that saved them from total collapse only two years ago.

Saving And Creating Jobs

The Detroit auto industry had been in a steep decline for years, and there has been a consistent loss of jobs throughout that time. However, thanks in large part to the government bailout, jobs in the industry have increased at the highest rate since 1998. Detroit has invested in their factories, thereby saving and creating tens of thousands of jobs.

“Insourcing”

Because more job opportunities are becoming available in the automotive industry, more is being manufactured in the United States rather than abroad. Outsourcing is becoming less common as “Made in the USA” has taken on a whole new importance to U.S. consumers. Even foreign automakers like Volkswagen are still building factories in the United States.

Stimulating Growth In Other Industries

The productivity of other industries relies in part on the automotive industry. Since the auto industry is making a comeback, these other industries will also continue to grow. Because of this, the resurgence and continued success of the Detroit auto industry creates more jobs not only for itself, but in several other fields as well.

The comeback made by the Detroit auto industry is bringing back jobs, opening up local opportunities for economic growth and providing a boost for several communities. The Big Three’s technology updates have also positively affected U.S. agriculture, manufacturing and distribution. Even the retail, hospitality, and tourism sectors of those cities have experienced resurgence from the revitalization of the car industry!

Photo credits: Chrysler Group HQ: Chrysler 200 Building Wrap by Chrysler Group; First Pre-production Chevy Volt rolls of the assembly line by Argonne National Lab

Charlie Stanton is an insurance consultant who recommends checking online for cheap car insurance offered by some of the more popular providers, like Esurance, which provides discounts when you switch over from your current carrier.

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