If there was ever a “rags to riches” tale, the “Motor City” would definitely claim first prize.
Back in 2013, the city of Detroit filed for Chapter 9 bankruptcy, it was the largest municipal bankruptcy filing in U.S. history, with a debt estimated at between $18 to 20 billion dollars.
Fast forward to 2019 and the “Cinderella City” is making a comeback. Last Tuesday Fiat Chrysler announced that the automaker is opening a new auto assembly plant in southeast Michigan as part of a multi-billion expansion into the city of Detroit.
The plant will provide roughly 6,500 jobs to the city and is considered a monumentally large commitment, especially given Detroit’s recent struggles.
Although some business analysts and economists might have advised against such a risky move, the choice to open a plant in Detroit is due in part to the booming Trump economy.
The President’s economic package of eliminating punitive regulations and cutting the corporate tax rate from 35% down to 21% has allowed businesses across the country to expand their operations and reinvest those saved tax dollars in purchasing new equipment, hiring additional workers and opening assembly plants.
Larry Kudlow director of the National Economic Council since 2018 and a chief advisor to the President, said in a recent interview on CNBC, “I still believe the big story this year is an economic boom that most folks thought impossible,”
Adding, “I understand that he’s (Trump) been in for a year and a half, but when you look at those numbers, this is not going away.”
That optimistic economic forecast by Kudlow, is perhaps the reason why Fiat Chrysler is coming back home to Detroit, and opening their new assembly plant at the Mack Avenue Engine factory location, for their Jeep Grand Cherokee and a new SUV lines.
Detroit Mayor Mike Duggan on Tuesday said in a statement, “This is the way the city of Detroit fights unemployment and poverty. Standing here today, to be back in the city of Detroit, is truly remarkable.”