<p>I stand corrected DSMO. It is Detroit's population that is steadily declining, not Michigan's. Since 1990, Michigan's population has increased from 9.3 million to 10.2 million today.</p>
<p>This state lives and dies by the US automotive industry.</p>
<p>If GM and Ford can turn it around, Detroit (and therefore the rest of the state) will make a comeback.</p>
<p>I'm a Chyrsler brat, so thankfully the Chrysler Group is in decent shape at this time. I just got my new '06 Durango yesterday, and it's a nice car, but it feels cheap. It is definitely only the baseline model, but I'm sure the Asian automakers are able to use nicer cloth for the seats on their cheap cars.</p>
<p>My old car ('05 Durango) was a more expensive model, but they should be using that kind of smooth cloth for the cheapest models. The Big Three really need to stop pinching pennies and do something right. (And trust me, my mom works in finance/procurement, and we really are talking about PENNIES that finance/engineers will bicker about)</p>
<p>Don't get me wrong, the Durango is a solidly built car, adequate power (Hemi is very nice as well), but in a day of such fierce competition I think you need to offer the customer a little bit more.</p>
<p>(Just to note, on the upper end models, Chrysler does use better cloth, and the interior looks and feels much better.)</p>
<p>Sorry to be a pessimist, but GM and Ford are going down, GM more so than Ford. Foreign automakers are faster, more efficient, and produce better quality cars than GM possibly can. One of the most serious problems is unionization; the UAW, for example, demands and demands more from GM even when it is collapsing. Now, I am for unions because they fought and won many things for the common worker like the 8 hour day and safe workplaces, but unions really have taken it too far. I don't blame the common man because it usually isnt his fault, but rather the union bosses who make tons of money for doing nothing. It's no wonder the UAW is breaking up. I think the Teamsters broke off from them, or something like that. </p>
<p>I know many people who thought seriously about finding a way to help GM turn things around; they come back depressed because there really is very little we can do now. GM shares in the stock market are at all-time lows, and almost were declared junk bonds (meaning they're worth very little and investors should steer clear). The recent bankruptcy of Delphi, a GM affiliate, only underscores this. We need to stop being a one horse state, and attract DIFFERENT industries not just one. Chicago, for example, has many different businesses and look how it is booming. Biotechnology, fuel cell technology, alternative fuels, steel, and national defense firms are all strong industries right now. This is one way to revitalize Detroit, and the rest of the state. But, clinging to an industry that is sinking, and dragging us down like an anchor, is a foolish idea. If GM wants to rebuild, I would recommend they invest and explore those fields I mentioned. I'm sure they know all of this, but it depends on how many more losses they are willing take before they see the light. I believe Gov. Granholm is doing an excellent job fiscally, making budget cuts to rebuild our economy and make up for incredibly budget expenditures from the Engler administration. Let us hope she is reelected in 2006 for a stronger Michigan.</p>
<p>GM bonds were lowered to junk by S&P and Fitch Ratings in May, Moody's in August. The high correlation between the auto industry, the state of Michigan and the University of Michigan is a bit scary.</p>
<p>I'm still going to have to disagree. Things are going to change, but GM and Ford will both survive. It's really only a matter of making cars people want to buy. Chrysler found that out within the past few years, market share has been growing as a result. Ford finally has a winner with the Fusion/Milan.</p>
<p>5 years ago Chrysler was in serious trouble and everyone thought they would be down the tubes. A few good designs left the company in better shape than the other US automakers. GM and Ford are in a somewhat better position. Although US sales are declining, GM is the market leader in the rapidly growing Chinese market. Ford is already starting to transform its lineup. Along with this, both of them are in trouble at the same time. This isn't great for the state, but it probably is a good thing. Lobbying resources can be pooled, talks with the UAW take on more urgency.</p>
<p>Already we've seen cuts in health care costs for the companies. These cuts will not be the last. But if everything does go to hell, the government will be forced to intervene. We are talking several million people dependent on these companies and 3-5% of GDP.</p>
<p>I think they'll make it, but things in this state will definitely change. I agree with you about Granholm, she is doing a good job considering what Engler left the state's finances like. I feel the state really need's to do more to implement some of the ideas suggested by the Cherry Commission to get the state in better shape for the economy of the future.</p>
<p>Something needs to be done about business taxes here as well. While the Republican plan of having nothing to replace our current system after 2009 or so is irresonsible, something still needs to be done.</p>
<p>Not anymore Hillstreet. That was true in the 80s and 90s, but it has changed in recent years. The state is promoting the biomedical and pharmaceutical fields as well as tourism and the University of Michigan is working closer with the biomedical and pharmaceutical fields as well as with information technology. I'd say the state and the university saw the trend (admittedly a little later than they should have) and are making good adjustments.</p>
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The high correlation between the auto industry, the state of Michigan and the University of Michigan
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</p>
<p>I don't get the 'correlation' between the auto industry and U-M. What do you mean?</p>
<p>GM and Ford both have big endowed scholarships for children of employees at U of M.</p>
<p>I'm sure it also goes something like "Big Three doing poorly = crappy state economy = lower tax revenues = lower funding for UM."</p>
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I'm sure it also goes something like "Big Three doing poorly = crappy state economy = lower tax revenues = lower funding for UM."
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<p>Yes, there is that, but there are opposing forces at work, too. When the economy is bad, that's when people are most concerned about getting a good education (or going back to school).</p>
<p>I think it's overstating things to suggest that the University's fortunes rise and fall with the Big Three.</p>
<p>Dsmo, Michigan's reliance on funding from the Big 3 is minimal and insignificant. Obviously, the State and indeed, the University, benefit from a strong automobile market, but the University has very strong ties with all of industry, not just the auto industry. This diversified network has relied less and less on the automakers. For example, in the 1990s, over 20% of Michigan Engineering and Business majors accepted jobs with the Big 3. Today, it is well under 10%. Michigan has forged new friendships with companies in every major sector, from GE to JP Morgan Chase.</p>
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For example, in the 1990s, over 20% of Michigan Engineering and Business majors accepted jobs with the Big 3. Today, it is well under 10%.
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</p>
<p>Is it because the Big 3 are hiring less, or jobs for engineers pay better elsewhere (can't imagine that back in the 1990's)?</p>
<p>Back in my days, the auto giants are the big employers for U of M grads, especially for internship and summer jobs.</p>
<p>What I meant Goblue is that Michigan will always adapt as need be to remain at the top of the game.</p>
<p>The big 3 ain't what it used to be and do u kno y? It's because of the Japanese plain and simple. They are more competitive and driven and this makes them always find some way to kick our butt in something that we used to be superior in; like designing cars that appeal to people or making them with better quality without all those recalls u see on T.V. All this stuff makes the Michigan economy suffer cuz we are the motor city after all and we are mostly employed by them and if you ain't bringin in the dough u are gonna get laid off and that tanks our economy. No wonder our unemployment rate is one of the highest in the nation. C'mon big three wake up and smell the roses and do something about this or else the Michigan economy tanks and this will become a land of Toyotas and Hondas.</p>