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Detroit, the Auto Industry and Globalization Industrial Era Ford, Chrysler, GM Turn of century- boom in auto-production Rapid expansion of population,

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Presentation on theme: "Detroit, the Auto Industry and Globalization Industrial Era Ford, Chrysler, GM Turn of century- boom in auto-production Rapid expansion of population,"— Presentation transcript:

1 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

2 The Road to Organized Labor "The UAW would organize Ford over my dead body." -Henry Ford UAW Detroit Flint sit-down Strike (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

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

4 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 th Street Riot 1967 Issues behind riot: discrimination, housing, black unemployment rates, white flight, chronic police brutality

5 White Flight Middle income white families flee to suburbs (started in 50's)‏ Issues: commuting (traffic, road systems), socio- economic segregation, sprawl, urban decay

6 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

7 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?

8 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”

9 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

10 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 7 th (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 3 rd place Reputation: Murder capital of the country (1980's, [ FBI crime statistics ])‏ Population loss of 1 million since 50's

11 Urban Prairie

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13 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


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