Case Study: Ford car company in Detroit, USA
- Detroit was chosen to be home to the company for a number of reasons – partly by chance, as Henry Ford lived in the area – steel making factories nearby, ships can reach Detroit easily
- Factories involved 3 car manufacturers – Henry Ford, Crozier, General Motor
Social Impacts – During
- Put city on the map, made it recognised
- Helped with public services
- Improved wages to $5/day when the average was $9/week
- Growing subculture of artists, musicians etc – growing creative industry
- African Americans moved there from the south to find work and escape racism, but experienced further racism when in Detroit and struggled to find employment
Social Impacts – After
- Over 80 languages are now spoken in Detroit
- Area is in good condition with large gardens, safe environment etc
- Industry helps with education of employees’ children, provides good cars and homes
- Buildings collapsed and roads were left in poor condition
- Became sparsely populated
- 43 people died in 12th Street riots after factory closures
- An extremely poor population was left after the 12th Street riots
- Regeneration has created disconnection between new areas and the city centre
Economic Impacts – During
- Helped with public services eg building mansions, entertainment facilities
- Improved wages to $5/day
- Towards end, the industry lost money so public service funding had to be cut
Economic Impacts – After
- Industry re-grew in 1990s
- More jobs have since come back due to economic regeneration
- Oil prices rose in 1970s and Japanese cars became great competition within the industry
- Shops were closed downtown
- Very poor population remaining after the riots