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Detroit and the surrounding region constitute a major manufacturing center, most notably as home to the Big Three automobile companies, General Motors, Ford, and Chrysler. The city is an important center for global trade with large international law firms having their offices in both Detroit and Windsor. About 80,500 people work in downtown Detroit, comprising 21% of the City's employment.
There are about four thousand factories in the area.[84] The domestic auto industry is primarily headquartered in Metro Detroit. New vehicle production, sales, and jobs related to automobile use account for one of every ten jobs in the United States.The area is also an important source of engineering job opportunities. A 2004 Border Transportation Partnership study showed that 150,000 jobs in the Windsor-Detroit region and $13 billion in annual production depend on the City of Detroit's international border crossing.
The Detroit area is accustomed to the economic cycles of the auto industry. A rise in automated manufacturing using robot technology, inexpensive labor in other parts of the world, and increased competition have led to a steady transformation of certain types of manufacturing jobs in the region. Local complications for the city include higher taxes than the nearby suburbs, with many unable to afford the levies on property.[88] During the recession, in April 2009, metropolitan Detroit's unemployment rate had risen to 13.6%.
In the city, as of July 2009, the unemployment rate rose to a record 28.9%. The city has cleared large swaths of land while retaining a number of historically significant vacant buildings in order to spur redevelopment; though the city has struggled with finances, it issued bonds in 2008 to provide funding for ongoing work to demolish blighted properties. In 2006, downtown Detroit reported $1.3 billion in restorations and new developments which increased the number of construction jobs in the city.
Comerica Tower in the city's financial district.The Detroit automakers and local manufacturing have taken heavy hits as a result of market competition from foreign rivals. The 2000s energy crisis, the subsequent Late-2000s recession, and the increasingly unwieldy burden of employee retirement and healthcare costs have all been implicated.Concern among analysts over restored profits has fueled economic uncertainty in the metro Detroit area.
In January 2009, President Barack Obama formed an automotive task force in order to help the industry recover. The severity of the recession required Detroit's automakers to take additional steps to restructure, including idling many plants. With the U.S. Treasury extending the necessary debtor in possession financing, Chrysler and GM emerged from 'pre-packaged' Chapter 11 reorganizations in June and July 2009 respectively.
GM plans to issue an initial public offering (IPO) of stock in 2010.[96] General Motors has invested heavily in all fuel cell equipped vehicles,[97] while Chrysler is focusing much of its research and development into biodiesel.[98] In August 2009, Michigan and Detroit's auto industry received $1.36 B in grants from the U.S. Department of Energy for the manufacture of lithium-ion batteries.
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