US automakers aid Detroit’s retirees image

While the big US three – GM, Ford and Chrysler – quickly rose from the ruins like the Phoenix, the same can’t be said about their home city of Detroit – which is currently amidst a historic bankruptcy.

The city’s incredible bankruptcy has even resorted to extreme measures – the Detroit Institute of Arts (DIA) – was asked to sell some of its art works to pay city creditors, but thanks to a so-called grand bargain, the art museum would come up with $100 million that would go into the city’s retirees pensions – to ease ongoing cuts. Under the same move, the city would be further aided by the state of Michigan ($195 million) and several philanthropic foundations, who would come up with no less than $366 million.

The Detroit automakers make their share of the contribution with the $26 million, consisting of $6 million from Chrysler, General Motors and its Foundation each coming up with $5 million and $10 million from Ford.

The $26 million are not committed directly to the city’s municipality, instead going as part of the $100 million raised by the DIA – which under the bargain negotiated, would see all collection and assets transferred from the city to the private nonprofit corporation that currently runs the museum.

Via Reuters