The near-bankruptcy of the American auto industry is just the latest in a long history of challenges Detroit has endured.
"By almost any measure, Detroit is in deep trouble. Unemployment has risen above 20 per cent, the city's government is more than $300-million (U.S.) in debt, there are 87,000 vacant homes and one study recently reported that about 30 per cent of the city is now vacant land.
The population started to decline slowly in the 1950s with the advent of suburbs and the development of a freeway system that made commuting easier. The turning point came in July, 1967, when race riots destroyed much of the downtown and left lasting emotional scars. The rioting hastened the flight of whites to the suburbs, leaving Detroit to cope with a falling population and a reduced tax base.
While few people in Detroit are banking on the auto sector to help revitalize the economy, there are signs of hope. A $100-million non-profit venture, called the New Economy Initiative, is providing grants to help start dozens of new businesses. Another non-profit group, the Detroit Vacant Property Campaign, is helping revamp abandoned houses, and Mr. George said he has more than 10,000 registered volunteers who help clean up neighbourhoods. Home sales are on the rise, jumping 18 per cent last month from a year ago as buyers start to snap up bargains."
FULL STORY: Motor City Stalling

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