Detroit case study

Early reputation and Henry Ford

From 1915 to the start of the Civil War, Detroit earned a reputation for manufacturing cars and kitchen ranges. In 1896, Henry Ford built his first car in Detroit using moving assembly lines.

Emergence of major car companies

During the early 1900s, dozens of companies emerged in the area, committed to finding success in the new industry, for example Ford in 1903, General Motors in 1908 and Chrysler in 1925.

Detroit during WW2 and the mid-20th century wealth

During WW2 the car factories were used for producing weapons for the allied forces. High paying jobs meant that even workers without college degrees could afford homes and cars, creating a huge middle class. In the mid-20th century Detroit was one of the wealthiest US cities per capita, meaning there was lots of investment into public infrastructure.

The Great Migration and early population growth

From the 1910s to 60s, the Great Migration occurred, when African-Americans migrated to Detroit from the South. Before this, there was lots of European migrants e.g. Poles, Germans, Italians, and Irishmen. In 1950 the population was 1.85 million. From 1910 to 1920 Detroit’s black population increased 611%. In the 1930s - 50s, the government marked black neighbourhoods as financial risks, preventing black families from getting mortgages etc

1967 Riots and 'White Flight'

In 1967, black Detroiters revolted against oppression they'd faced by white people, rioting against the police. Racial tension spiked which led to the 'white flight'. White people fled the inner city to the suburbs. As the wealthy moved out, inner city infrastructure crumbled.

Immigration and Middle Eastern population

In 1965, the US immigration law changed and the Middle Eastern population in Detroit rose from 70,000 to 92,000 from 1974 to 2004.

Cultural success (Motown and Sports)

In the 1959 century, Motown Records was funded by Berry Gordy Jr. This record company gave the world Marvin Gaye, Stevie Wonder, Michael Jackson, The Temptations, Diana Ross and more. Sporting success e.g. Tigers, Red Wings, Pistons, Lions.

Environmental characteristics pre-change

A lakeside city. There was virtually no pollution before development/urbanisation. The Detroit shoreline had extensive coastal wetlands. Erie Canal opened in 1825.

Role of freeways and the 1944 shift

In 1944, the mayor got money from Congress to build freeways, allowing for more people and factories in the suburbs. This meant factories moved out to the suburbs, which spurred economic decline.

The 1973 Oil Crisis and Deindustrialisation

In 1973, the oil crisis struck, meaning Detroit no longer dominated the market because it was cheaper to import from other countries like Japan. Deindustrialisation occurred as companies moved abroad for cheaper labour.

Instability and the 2013 Bankruptcy

Civil unrest means there wasn’t much investment in the 1960s, as businesses saw the city as unstable. In 2013, Detroit declared bankruptcy.

Decentralisation of the 'Big Three'

Foreign car manufacturers became more popular e.g. Nissan, Toyota. Ford, GM, Chrysler all chose to move production out of central Detroit and into suburbs. This decentralisation led to these companies moving to other US states or foreign countries due to lower labour costs.

Failure to adapt and the Highway Act

Ford, GM, Chrysler all failed to adapt to international competition in the 70s, resulting in downsizing. Federal Highway Act (1956) allowed people to commute from suburbs.

Role of Mayors Cobo and Kilpatrick

Albert Cobo was the mayor from 1950 to 1957, and he prioritised freeway construction while demolishing black neighbourhoods, facilitating suburbanisation. The mayor from 2002 to 2008, Kwame Kilpatrick, was corrupt, accelerating the city’s financial demise.

Role of Labour Unions

Labour unions e.g. United Automobile Workers meant costs for work were higher in Detroit, leading companies to move abroad.

Financial and social collapse (Debt/Poverty) *stats

Detroit was $20 billion in debt by 2013.

Employment rate was 21% in July 2013.

The poverty rate was 42% in 2012.

By 2013, the population decreased to less than 700,000, meaning the council couldn’t afford to run services, resulting in lower tax revenue.

Impact on Housing, Health & Education

Housing

• Houses were abandoned and left desolate.

• Detroit saw 30,000 eviction filings annually before Covid.

• 7,570 people were living in shelters from 2013-2017.

Health

• Health was low because for a long time, Detroit was the largest US city without a major name-brand supermarket in its city limits

• Therefore low-income residents without cars were forced to buy expensive, low-quality food from liquor stores and gas stations, reinforcing the cycle of poverty and poor health.

Education

• Only 64% of Detroit seniors graduated from high school.

Modern Demographic and Income Gaps

75% of population is African American in inner city Detroit. Yet 71% of employees in Detroit are from the white suburbs. In 2024, the income gap between White and Black residents was nearly $35,000.

Cultural Institutions and the Heidelberg Project

Economic decline meant that cultural institutions struggled; for example, the Detroit Institute of Arts was nearly sold to fight against the city’s crushing debt. Political protests against the urban decay and deterioration of neighbourhoods began in the 90s - for example the Heidelberg Project.

Environmental Dereliction and Pollution

Lots of derelict buildings – 25,000 were destroyed in 2014. At least 775 brownfield sites due to the closure of manufacturing plants. 8th most polluted US city by year-round particle pollution.

The Detroit River and Ambassador Bridge

The Detroit River contains an estimated 3.5 million cubic yards of contaminated sediment. It would cost over $3 billion to clean up the river. Ambassador Bridge is a trade link between Canada and the US, but trucks bring a lot of pollution and noise to Detroi

players involved in economic change

early days

• TNCs played the biggest role in economic change in the early days

• henry ford introduced daily wages and moving assembly lines, resulting in positive multiplier effect

• this resulted in the great migration, rapid urban sprawl

• example of top-down change

global brand

• while TNCs built the economy, music built detroit’s global brand

• berry gordy jr founded motown records, allowing artists like stevie wonder to become global artists

• allowed for wealth creation within black community

• made detroit a cultural capital

decline - TNCs

• in the 1970s, the oil crisis and competition from other brands meant that TNCs moved abroad for cheaper production

• this led to deindustrialisation → workforce plummetted, tax base shrank, gvmt had less money for services

2013 bankruptcy

• in 2013 detroit was in debt by $18 billion

• colaition of players e.g. the detroit institute of arts, state gvmt, pooled together 800 million to protect city’s art collection

  • stabilised failing economy

  • was a multi-scalar approach from local (detroit institute of arts), regional (michigan gvmt), and national (ford foundation) players

post 2013 players

• dan gilbert bought 90 buildings downtown, wanting to re-pioneer the city centre

• the ilitch families invested heavily in sports, moving all four teams into the downtown core to attract tourism and footfall into the city

• however this results in the ‘two detroits’ effect, with benefits in downtown, but the rest of detroit being left behind

what structural economic change took place in detroit

catastrophic deindustralisation of a mono-industry economy

transitioned from automotive capital of the world to 18 billion in debt

players that resulted in boom

early 20th century = private TNCs had the most influence

henry ford implemented $5 a day wage, causing the great migration and positive multiplier effect

detroit became a global hub of mass production

at this stage, private players were most influential as the city was designed to serve the needs of the big three (ford, chrsyler, gm)

players that resulted in bust

in 1970s oil crisis and the rise of japanese tncs (toyota, honda) broke detroit’s monopoly

detroit’s tncs moved out of the city centre, outsourcing production to other countries

negative multiplier effect

secondary indsutries like steel collapsed

united auto workers - union protected workers but also resulted in tnc decisions to move overseas because labour costs were high

players that resulted in bankruptcy

gvmt players helped manage fallout

state of michigan allowed an emergency manager to be appointed, who was tasked with ‘driving change’

philanthropic players and state gvmt saved detroit institute of arts

top-down

saved the city from total collapse but marginialised local community players

players that resulted in post-2013 shift

private players e.g. dan gilbert invested billions downtown

private-led regeneration turned downtown into a hub

illitch family used sports-led regeneration to rebrand the city as an entertainment hub

criticised for ‘donut effect’ - centre thrives but outer neighbourhoods remain in state of decay