<p>Where is U - M going to be after the Big three automakers in Detroit have gone under?</p>
<p>I think people don’t know anything about colleges when they think that colleges are totally dependent on the local economy…here in Massachusetts we have a perfectly fine economy (relative to the rest of the country) yet the state budget cuts for public education have been off the charts</p>
<p>Very few U-M grads go on to work in the auto industry, so it isn’t like students will have a tougher time finding jobs…but the automakers drive the Michigan economy. Things will be tougher, but U-M should be fine.</p>
<p>And the Big Three aren’t going under. I think it is obvious that Ford will survive, and they will likely be the largest automaker in the country when the crisis survives. GM is in a more grave situation, but they should be able to survive. Chrysler is the one that could go under.</p>
<p>Think about the GM situation this way…they are finally putting out best-in-class products (Malibu, CTS, large crossovers, Volt on the way, etc.) The bankruptcy is going to allow them to scrap a terrible business model and become a leaner company that should be able to make money. I think GM will be ok in the end…as to Chrysler, that company is in total disarray. They need to get Fiat cars over here as soon as possible and put some real product people in charge of development for the future. They can’t afford duds like the Sebring/Avenger again when the Japanese and now Detroit brands are putting out strong competitors.</p>
<p>The bankruptcies at GM and Chrysler are a bad outcome for the Japanese companies. For most of the past decade, the US companies have been trying to restructure a terrible business model that they couldn’t truly fix, letting the Japanese gain market share. The bankruptcy proceedings will allow them to fix much of that at a rapid pace (lower costs now, smaller dealership network, etc.) Whatever emerges in Detroit is going to be much more competitive, and at a time of a weakened dollar, that is bad news for Japan Inc.</p>