Michigan's pain, Indiana's gain

July 2, 2008
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Detroit keeps turning out bad news, what with General Motors, Ford and Chrysler losing market share and Volkswagenâ??s announcement last fall that it would abandon the city and move its U.S. headquarters to Virginia.

Now Volkswagen is days away from unveiling a site for a new U.S. plant, and the Detroit News reports Michigan has been crossed off the short list in favor of two Southern states.

The steady downers are turning Michigan into a byword for decline, says Daniel Gorrell, who runs the California consulting firm AutoStratagem Inc. In short, Detroit â?? and by extension Michigan as a whole â?? has gained a stigma that will be extremely difficult to shake.

â??There is a spirit and a feel about Detroit now,â?? Gorrell says.

However, he adds, â??Things arenâ??t nearly as bad in Indiana. There isnâ??t the concentration of problems.â??

What do you think?
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  • Indiana can weather the economic downturns better than Michigan because it has a more diverse industrial base. Not everything made in Indiana rolls out of the factory on four wheels.
  • Everyone knows that Michigan has the upper hand. Not unlike George Costanza's pianist ex-girlfriend's retort,..'they'll need it'.

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