DALLAS – A series of jobs could be in jeopardy in Detroit as the city grapples with its worst job crisis since the Great Recession.
The city’s mayor and chief financial officer said Tuesday that auto parts maker General Motors and other manufacturers could be at risk of losing their contracts to maintain and repair vehicles in the city.
The Detroit News reported Monday that GM and Ford Motor Co. could lose up to $100 million each as they struggle to replace parts and equipment in a city that has been ravaged by the city’s devastating bankruptcy.
The news service cited an unnamed source close to the situation.
GM and its Detroit-based subsidiary are the only two auto makers left in the state.GM, a unit of the General Motors Co., and Ford have already begun the process of pulling their companies out of the city, but it could take years to get them out.
Ford Motor Co., which has been a major player in the auto industry, has said it will be shuttering its manufacturing facility in the Detroit suburb of Dearborn, while GM has said there are no plans to relocate.
The City Council has also been holding hearings on the citywide crisis, with several council members urging the state to fund job creation in the community.
The council has until May 15 to vote on a plan to help local businesses and companies that are affected by the crisis.