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The world economy was highly
affected by the globalization that occurred in the
past 50 years. Countries from all over the world
were touched by the relentless effects, and the US
was not an exception. Especially in the car
industry, the fate of many companies was sealed. In
Flint, Michigan the decline begun when the famous
General Motors had to face one of their greatest
challenge ever in the post-war history. The crisis
caused over 28,000 workers from the Buick factory in
Flint, Michigan to lose their jobs. People in
Flint were actually living the American Dream, as
members of the Auto Workers Union they received
benefits of more than $50,000 a year plus
overtime. In the 1950’s Flint had one of the
highest median incomes and the highest rate of home
ownership in the States.
The pressure of the
competition on the car market was immediately
resented by the GM’s board, which decided to reduce
some of their loses by closing factories all over
Flint. This is how the decline of a prosperous city
has begun. But the lack of a master plan
accentuated more its decline. Here are some of the
consequences of the city’s decline:
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high rates of unemployment;
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abandoned properties;
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the abandoned properties decreased the value
of surrounding properties;
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the criminal activities had a higher rate;
In 1960’s Flint was
projected to grow to 250,000, but the industrial
revolution has lead to fewer than 120,000.
Moreover, when GM reduced the number of employees
from 80,000 to only 17,000, it was the best time
that the city council rethinks the strategies and
master plans that will focus on blocking the decline
of the city and regain its force and vitality. It
is obviously that GM’s leaders never considered the
option of losing the monopoly position on the car
market and the failed in adapting their production
methods in order to fulfill the new demands of their
customers, which finally have chosen another car
suppliers on the market, such as Toyota.
Finally, in 2006, GM accepted
that they would never dominate the US car market and
applied downsizing programs. Unfortunately, the
scars left by the wrong decisions over time remain
in Flint’s history and not only; the locals will
probably never reach the same level of prosperity as
before. Today, Flint, Michigan is a true symbol of
the hard consequences of de-industrialization, but
how it has to face the challenge of reinventing
itself once again.
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Michelle