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Detroit car city gets new car factory after 30 years | Financial

It took thirty years for a car factory to open again in Detroit. Chrysler was the last car maker to start a new factory there in 1991, the Jefferson North Assembly, and the Jeep Grand Cherokee rolled off the production line there too.

After its expansion, the new factory, Mack Avenue, will eventually employ 5,000 people and build more than 500,000 cars a year. The factory now has 2100 employees. Stellantis has invested $1.6 billion in the construction of the new facility.

Financial crisis

In Detroit, the new production location of the French-Italian car manufacturer is experienced as a kind of newfound pride. Before the financial crisis, Detroit was the car city of the United States.

All American car manufacturers from GM to Ford had immense production locations there. At the outbreak of the financial crisis in 2008, the auto market collapsed, leading to mass unemployment in the Michigan state industrial city.

Obama

After the financial crisis, the heart of the American auto industry was moved to the east coast, to Silicon Valley, because of the rise of electric driving. Tesla is now also the car manufacturer with the highest market value.

Detroit went bankrupt less than ten years ago due to the demise of the auto industry. Then-President Obama pumped more than $300 million to give the bankrupt enough air to get back on track.

Meanwhile, the economy and employment in Detroit have recovered from the shock. Factory boss Michael Brieda told Reuters news agency that “finding good personnel who can work in a production environment” was the biggest challenge in the tight labor market. Candidates were specially tested for this during the application procedure.

Detroit car city gets new car factory after 30 years | Financial
Source link Detroit car city gets new car factory after 30 years | Financial

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