LA Times on Chrysler bankruptcy’s effect on the city of Warren

The LA Times had an article on Sunday about the city of Warren and the effect that the Chrysler bankruptcy will have on it. Warren is almost entirely dependent on GM and Chrysler for their employment and property tax base and the shutting down of Chrysler plants for the next couple months during bankruptcy proceedings will be another major hit to the city’s economy. And the long-term health of both companies weighs heavily on the city’s residents:

Chrysler has two factories here, one of which opened as the Depression was winding down. The firm is the town’s second largest employer. General Motors Corp., which owns the city’s biggest parcel of commercial property, has until June 1 to present a long-term viability plan or it too could end up in bankruptcy court.

“We have to do everything we can to support the local industry,” Fouts said. “If Chrysler and GM fail, it will be disastrous.”

If there is a heart to the American automotive industry, and a place where people still pray that cars can save them, it is Warren.

With the temporary — they hope — shutdown of Chrysler’s two Warren factories, restaurants and other services are cutting back on hours in expectation of reduced business over the summer.