Detroit, the Auto Industry and Globalization

Industrial Era Ford, Chrysler, GM Turn of century-

boom in auto-production

Rapid expansion of population, cities and infrastructures

Mass migration from south and abroad

The Road to Organized Labor"The UAW would organize Ford over my dead body." -Henry Ford

UAW- 1935 Detroit Flint sit-down Strike 1936-

1937 (GM) Battle of the overpass

1937 (Ford) Sit-down strike,

unionization 1937 (Chrysler)

500,000 members 1941, Ford workers win

right to unionize WWII, no UAW “no strike'

pledge

1946-1970 1.5 million members Negotiated wages far above market rates for unskilled

workers Effects of 73' oil embargo Membership is now around half a million Decline in wage and benefit concessions, less

influence of union Example: average worker costs car companies 70-75

dollars an hour (2002) Debate: Some blame UAW for the loss of jobs in the

area

Detroit Riots"...We must come to see that de facto segregation in the North is

just as injurious as the actual segregation in the South."-Martin Luther King Jr., Detroit, 1963

Detroit Race Riot 1943

12th Street Riot 1967 Issues behind riot:

discrimination, housing, black unemployment rates, white flight, chronic police brutality

White Flight

Middle income white families flee to suburbs (started in 50's)

Issues: commuting (traffic, road systems), socio-economic segregation, sprawl, urban decay

70's and 80's

Oil embargo (73) Energy crises (79) foreign car makers gain market share

Loss of 300,000 manufacturing jobs

Competition from foreign car companies

1970's Oil Shortage

Average fuel economy 1973: 13.4 Miles a gallon!!! (21.5 Km for 3.8 liters!)

Gas shortage: drastic measures taken by government to curb oil usage

Which car would you rather drive during a time of gas shortage?

Flint and Lansing- Sister cities

Many factories of the big three located in these nearby cities

Have experienced similar issues

Plight of Flint shown in Michael Moore's film “Roger and Me”

1990's

Role of technology in manufacturing, foreign producers more efficient

Wages and benefits still high

But: increasing competition from foreign and domestic producers

Southern US: less unionization and hence lower wages

Current Statistics

8.5% unemployment (2007)

Severe urban decay, ultra-rich suburbs

80% in Detroit city black, majority of suburbs white

Detroit: most dangerous US city, Flint is 7th (Morgan Quinto press)

Houses now selling for less than cars (less than 10,000 )

Winner of most miserable city in US (Forbes Misery Measuree), Flint is a close 3rd place

Reputation: Murder capital of the country (1980's, [ FBI crime statistics ])

Population loss of 1 million since 50's

Urban Prairie

Urban Prairie

Future of Detroit and Auto industry

Unionized workers= unlikely that manufacturing jobs will return

Globalization process will not reverse

Detroit as “the last American city”

Urban revival projects in community