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Daniel Howes

Daniel Howes / Detroit News

What do you get when you combine Detroit Public Schools, the Kresge Foundation and the University of Michigan?

Answer: A place called Hope.

Nearly two years after Detroit’s Marygrove College faced financial collapse, the tiny school is opening a new chapter, thanks to some of the region’s biggest players. And the Detroit Public Schools Community District gets a chance to prove its mettle under new leadership.

This isn't good

Sep 8, 2018
Daniel Howes / Detroit News

Out in flyover country, football season’s here again. The Spartans are up, the Maize and Blue is stumbling, and the spectacle in Washington is morphing from absurd to surreal.

That’s what you get with a drama queen as president a news media stretching the creed of its own business and the rest of official Washington standing aside, helpless agog or both.

Daniel Howes / Detroit News

The Blue Oval is stuck in neutral. Again.

Just a few years after superstar CEO Alan Mulally retired and left town, Ford Motor is embarking on another 25 billion dollar restructuring. If you think this sounds like déjà vu all over again, that’s because it is.

What happened?

Ford’s second largest business – China – is in free-fall.

South America remains a money loser.

Its European business -- just a couple of years ago hailed for its turnaround -- is losing steam.

old school Ford logo
James & Carol Lee / Unsplash

Ford Motor Company got some troubling news this week from Moody's Investors Service.

It has downgraded Ford's investment rating to just one level above junk status. To Moody's, this signifies the chance of default.

Daniel Howes / Detroit News

Governor Rick Snyder’s been the de facto head of Michigan’s Republicans for eight years, but he won’t be at the GOP convention this weekend.

His people say it’s a scheduling conflict. I say that’s baloney. He’s making a statement. And it’s aimed squarely at Attorney General Bill Schuette: “You’re on your own.”

governor rick snyder
Steve Carmody / Michigan Radio

Michigan Republicans gather for their convention this weekend to line up their ticket, led by gubernatorial candidate Bill Schuette, for the November election.

But one prominent member of the party won't be there: Governor Snyder.

His office says a "scheduling conflict" will keep him from being at the final convention of his time in office.

Tesla Tweets Trouble

Aug 18, 2018
Daniel Howes / Detroit News

Tesla CEO Elon Musk needs a timeout.

Big-league auto industry pressure is getting to the, quote, “visionary” hailed by tech fan boys and true believers. You don’t need to take my word for it. Look at his Twitter feed. Less than two weeks ago, he rips one off saying that he’s thinking about taking the electric-car maker private. 

Daniel Howes / Detroit News

Chrysler and its storied American brands live today because ol’ Sergio Marchionne – a poker player – gambled and won.

As Detroit’s number three automaker slumped toward bankruptcy, the CEO of Italy’s Fiat bet he could combine the weakest players in Europe and the United States to forge a global contender. One that could generate fatter profits and carry less debt.

The new Obama administration relented. So an Italian schooled in Canada got control of Chrysler for essentially nothing  arguably the shrewdest acquisition the global auto industry has seen in a generation.

user International Students’ Committee / wikimedia commons

 

Tributes have poured in for Sergio Marchionne, the former CEO of Chrysler and Fiat who died Wednesday. 

Detroit News business columnist Daniel Howes wrote: "His impact on the global auto industry cannot be overstated.”

Howes joined Stateside’s Cynthia Canty to discuss the qualities that made Marchionne a great leader.  

Daniel Howes / Detroit News

One of the biggest things to hit Detroit since the moving assembly line marked its fifth anniversary this week. That’s when the Motor City became the largest municipality in American history to declare bankruptcy.

Just weeks before, a union official said, quote: “It’s war.” But the financial restructuring that helped deliver four balanced budgets, drew three credit upgrades, improved delivery of basic city services, and attracted billions in private-sector investment turned out to be anything but.

Daniel Howes / Detroit News

It’s not news that Flint has been struggling to get clean water into its homes and businesses, except maybe to Elon Musk.

He’s the visionary behind PayPal, Space X and Tesla. This week Musk tweeted he’s ready to deliver fresh water to the city. But the offer that has Flint officials wondering what, if anything, is next … looks awfully transparent to faithful Musk watchers. Same for people who know just what happened to the city and what it will take to fix it.

Mark Edwards is the Virginia Tech researcher who helped identify the scale of Flint’s problem. He told The Detroit News that Musk should be, quote, “more focused on meeting” his Model 3 production goals.

futuristic car at North American International Auto Show
Nathanal Photography / FLICKR - http://bit.ly/1xMszCg

After nearly 30 years, big changes are in the wind for the North American International Auto Show.

Daniel Howes, Detroit News business columnist, says that it’s crucial for the organizers of the show, the Detroit Auto Dealers Association, to "make an appropriately aggressive decision for fast-changing times."

Daniel Howes / Detroit News

By this time, the long-running auto boom was supposed to be coming to an end.

Quick, someone tell that to the truck and SUV buyers who powered the annual selling rate last month to 17.5 million vehicles. That’s according to a Morgan Stanley estimate. If that’s evidence of a slowdown, Detroit and its foreign-owned rivals would like more of the same, please.

Daniel Howes / Detroit News

The automakers found their proverbial spines this week. After months of President Donald Trump’s haranguing about tariffs on finished vehicles and auto parts, the industry presented the country with a bill. Realizing the president’s protectionist dream would not come cheaply. The average cost of a vehicle would increase $5,800, says the Alliance of Automobile Manufacturers.

Daniel Howes / Detroit News

After months in the making, Ford Motor’s play for the Michigan Central Depot is official. Let the grousing begin.

It will start in the suburbs, from the generation that came of age during the urban unrest of the late 1960s, witnessed the controversies and power-shifting of the 1970s, and watched during the 1980s and ‘90s as capital and jobs fled Detroit for the suburbs.

Ford's Corktown Play

Jun 16, 2018
Daniel Howes / Detroit News

Ford Motor is planning a big party on Tuesday. It’ll be at the Michigan Central Depot, that gap-toothed hulk looming over Detroit empty and rotting for thirty years.

But not anymore, once Ford’s plans for what it’s calling a campus in Corktown become more clear.

Here’s what you need to know: Detroit’s oldest neighborhood could be transformed by Ford’s plans. The automaker wants to anchor its next-generation mobility, autonomy and electrification work in the 105-year-old train station.

This is huge, people. Detroit hasn’t seen a business move this big in eight years. That’s when Dan Gilbert moved his Quicken Loans headquarters to the city and followed with a downtown real estate buying spree.

This may be even bigger because it’s eight years later. Because Quicken blossomed into a major corporate presence downtown. Because Ford’s presence is likely to turbo-charge redevelopment of a neighborhood … and set the example for more.

Daniel Howes / Detroit News

Three thousand delegates and members of the United Auto Workers will descend on Detroit next week for their Constitutional Convention.

They’ll hear happy talk about organizing gains, three years of fiscal discipline and fiery rhetoric, because that’s what these sessions are for. Fire up the membership in advance of next year’s bargaining with the Detroit automakers and others.

It’s what the folks leading today’s UAW won’t be talking about that matters. The union’s three joint-training centers funded by the Detroit Three remain under a federal corruption investigation.

Daniel Howes / Detroit News

The race to replace Governor Rick Snyder is on.

Here on Mackinac Island this week, we learned from a gubernatorial debate: That Democrat Gretchen Whitmer is a mom. She’ll “Fix the Damn Roads.” And she has a “backbone of titanium.” Just ask her.

Republican Pat Colbeck has Michigan’s roads disaster all figured out. He’d order “a complete review” of the state’s road-building process and upgrade them to higher standards – all without raising taxes. Right.

Democrat Abdul El-Sayed would dismantle the “Betsy DeVos agenda” for Michigan’s public schools and “end this profit motive in our schools.” And every student coming from a household making $150,000 or less should graduate from college debt-free. How and who’s paying the tab he didn’t say.

Map of Detroit Metro Transit plan
Regional Transit Authority of Southeast Michigan

Audio: A conversation with Daniel Howes, Detroit News business columnist. 

One hot topic at the Mackinac Policy Conference this week is the future of regional transportation in Southeast Michigan — particularly a proposed millage to fund the expansion of the Regional Transit Authority of Southeast Michigan.

Daniel Howes is a Detroit News business columnist. He speaks with Stateside about regional divide and larger issues at the core of the RTA debate. 

Daniel Howes / Detroit News

President Trump says America needs tariffs on foreign-made cars and trucks to safeguard our “national security.”

Really? How many pickups do the Russians sell in the United States? Zero.

How many cars do the industrious North Koreans and Iranians ship here? Zero.

And how many Chinese-brand cars sit in U.S. showrooms? Essentially zero.

multicolored shipping containers in a ship yard with imported goods
Jan Buchholtz / Flickr - http://bit.ly/1xMszCg

President Trump is considering tariffs on imported cars, trucks, and parts.

That word came after a Wednesday morning tweet from the president, promising "big news coming soon for our great American Autoworkers."

Daniel Howes / Detroit News

Now we know what incompetent governance cost at Michigan State University.

Half a billion dollars. That's the price to settle with 332 women sexually abused by Dr. Larry Nassar and a reserve fund to compensate women who still might come forward. It’s the prospect of a 2.5 percent budget cut to free up cash to make good on the settlement. It’s untold damage to the university’s reputation, to its attractiveness to would-be students and, yes, to the state.

Plaque for city of Detroit and Wayne County on the side of the Spirit of Detroit
Mumu Matryoshka / Flickr - http://bit.ly/1xMszCg

 

The city of Detroit is suing Dan Gilbert's real estate company, Bedrock Management, for refusing to turn over personal information of its apartment building tenants.  

The city wants to find out if people who live at several Gilbert properties have paid their city income taxes. 

Daniel Howes / Detroit News

Paddlesports are becoming Big Business in the Great Lakes state. The Coast Guard estimates some 650,000 kayaks, canoes and paddleboards ply Michigan waters every year. And that number is expected to grow seven percent a year, reports The Detroit News.

At that rate, paddlecrafts would outnumber registered power boats within three years. The crush of paddlers from rank beginners to advanced Great Lakes paddlers … threatens to overcrowd the 1,300 boat launches around the state.

Chrysler logo
Garret Voight / Flickr - http://bit.ly/1xMszCg

 

Twenty years ago this week, Germany's Daimler-Benz AG acquired Chrysler.

 

The Germans described it as "a merger of equals." 

Daniel Howes / Detroit News

Apparently, hell hath no fury like environmental regulators who've been deceived.

Just ask Martin Winterkorn. The former Volkswagen CEO was indicted this week on federal conspiracy charges that he defrauded the United States, committed wire fraud and violated the Clean Air Act.

The reckoning was inevitable. Ever since regulators discovered VW’s scheme to evade diesel emissions rules almost three years ago, it’s only been a matter of time for ol’ Winterkorn to get the book thrown at him.

Ford display at the 2018 NAIAS in Cobo (with a bit of Chevrolet in the background)
Matthew P. L. Stevens / Flickr - http://bit.ly/1xMszCg

For decades, January in Southeast Michigan has meant it's time for the auto show.  

Thousands trek to Cobo Center for the North American International Auto Show, often picking their way through snow and ice, but it seems that the snow may give way to autumn leaves. 

Daniel Howes / Detroit News

A few years after the bankruptcies of General Motors and Chrysler, I found myself on the long porch of Mackinac Island’s Grand Hotel chatting with Fiat Chrysler CEO Sergio Marchionne.

He was talking about the Chapter 11 process to help failing companies and how it helped Chrysler and GM survive – thanks to Obama's auto task force and American taxpayers.

It also forced the people running those companies – and those who would follow – to make hard decisions. I was reminded of that this week. In less than 24 hours, those who care got three separate looks at the financial health of Detroit’s three automakers and things looked different.

Daniel Howes / Detroit News

The Chinese say they’re willing to change the rules that protect their precious auto industry. That’d be the industry companies like General Motors have spent a generation building with Chinese partners because, over there, he who controls the government rules.

Andrey Filippov 安德烈 / FLICKR - http://bit.ly/1xMszCg

The news from Beijing this week is that China's President Xi Jinping is "open" to reducing the 25 percent tariffs on foreign-made cars, trucks, and SUVs. The leader is also open to full foreign ownership of auto companies in China.

It sounds like a big deal, but is it?

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