Detroit Bankruptcy: To Take Cue From GM, Chrysler Survival?

by MetalMiner IndX Reports on July 19, 2013

Style:    Category: Automotive, Ferrous Metals, Metal Prices, MetalMiner IndX, Non-ferrous Metals

General Motors and Chrysler, two of the three Big Three US automakers, could teach the city of Detroit a thing or two about bankruptcy.

As one of the former largest cities in the entire country, Detroit finally declared bankruptcy yesterday, ending a painful few months of limbo and disclosing a debt of some $18-20 billion. But GM and Chrysler, both receiving bailouts after the 2008 crash, have been through this before.

“Unsaid in their statements, but well understood by everyone around Detroit, was that General Motors Co. and Chrysler Group LLC survived government-led bankruptcies of their own, and are now racking up strong profits as auto sales recover,” read a Wall Street Journal piece this morning. “Chrysler…vowed to continue to invest in the city. One of its largest factories, Jefferson North, is located on the east side of Detroit and builds the popular Jeep Grand Cherokee sport-utility vehicle.”

Weekly Automotive Metals Index

Automotive MMI® prices rose across the board during the week of Monday, July 15. The week’s biggest mover on the weekly index, US HDG steel, jumped 5.6 percent.

* Get the complete prices every day on the MetalMiner IndX℠

The 3-month price of copper rose 2.3 percent on the LME to $6,939 per metric ton after falling 2.0 percent during the previous week. The primary copper cash price rose 2.1 percent on the LME to $6,923 per metric ton after falling 2.0 percent during the previous week.

The price of Chinese lead fell 0.2 percent last week. The week finished with no movement for Korean 5052 coil premium over 1050 sheet.

Closing out the third week of rising prices, the price of US palladium bar increased by 2.5 percent. The price of US platinum bar rose 2.3 percent this week.

See why our Auto MMI® is a leading indicator: download the latest Monthly MMI® Report.

The Automotive MMI® collects and weights 7 metal price points used in automotive production to provide a unique view into automotive metal trends. For more information on the Automotive MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

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