Detroit City Files for Bankruptcy

The city of Detroit has filed for Chapter 9 bankruptcy protection in federal court yesterday, making it the largest bankruptcy in US history. Known as the Motor City, home to the Big Three - General Motors, Chrysler, Ford - as well as other manufacturing facilities, Detroit is struggling under huge debts which are estimated at more than $18 billion.
Detroit City - GM headquarters 1 photo
"This decision comes in the wake of 60 years of decline in the city, a period in which reality was often ignored. I know that many will see this as a low point in the city's history. If so, I think it will also be the foundation of the city's future," said Michigan governor Richard Snyder in a letter posted with the filing.

If approved in court, it will be the largest municipal bankruptcy filing in American history, surpassing previous record filings by Jefferson Country, Alabama and Stockton. Detroit will also become the largest city to go bankrupt.

The city’s collapse is more than obvious, according to Snyder, who revealed that Detroit’s citizens have to wait 58 minutes for the police to respond to calls, way over the 11-minute national average. Also, only 8.7 percent of criminal cased are solved, less than a third when compared to the Michigan state average of 30.5 percent.

The unemployment rate has nearly tripled since 2000 and the homicide rate is at its highest level in 2013. Detroit is also home to about 78,000 abandoned buildings, while only a third of ambulances were in service in the first quarter of the year, the report revealed.

Story via USA Today
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Ciprian Florea
Ciprian Florea profile photo

Ask Ciprian about cars and he'll reveal an obsession with classics and an annoyance with modern design cues. Read his articles and you'll understand why his ideal SUV is the 1969 Chevrolet K5 Blazer.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories