Economic effects caused by the departure of Chrysler from Kenosha, Wisconsin, and General Motors from Flint, Michigan, and Janesville, Wisconsin

Abstract

General Motors has a long history in both Janesville, Wisconsin, and Flint, Michigan. Chrysler also has a long history in Kenosha, Wisconsin. These corporations brought large economic growth to these cities, and after their departure they left a major economic void. In 2010 unemployment in Flint is approximately 13%, in Kenosha 11.1%, and in Janesville approximately 13%. Each of these cities have made steps towards redevelopment. Kenosha has been more successful because of its location between Milwaukee and Chicago, and being on Lake Michigan. They have turned the old plant site into an example of urban development by building condominiums, museums, and a marina. Flint has had a long recovery process starting in 1988 and is still trying to find a solution. They have made many attempts including revitalizing the downtown area to increase tourism, and more recently have started to downsize the city. Janesville has just recently lost General Motors (GM) and is still searching for a way to cope. These effects go beyond the economic level and initial job loss. There is broad secondary job loss. As well, the closing of these plants takes a heavy toll on the communities. For example, in Janesville former GM employees are faced with the decision to either go back to school for a new trade, move their whole families, or even commute cross country to other GM plants, which places a lot of stress on family relations. These automotive plants have a large impact on their communities once they pull out, and the recovery process is often decades long.