On Thursday, 17 July 2013, the US city of Detroit’s emergency manager, Kevyn Orr, took the unprecedented decision to file for bankruptcy after a deal between the city’s bondholders and its pension fund collapsed. Detroit labours under a staggering debt, estimated to be $18 billion and perhaps as much as $20 billion, and is struggling to provide even the most basic services. “This is the right thing to do,” said Orr last night, as he explained what is by far America’s largest municipal default.
Take heart dear citizens of Nelson Mandela Bay – at least our ‘problems’ fade away into nothing when compared to Detroit’s.
But, like the biblical speck in one eye versus a log in the other, we still need to take heed and learn from the history of Detroit – America’s Motor City.
Long recognised as the historic heart of the American automotive industry, Detroit took on the nickname “Motor City.” The automotive industry provided the model for mass production that other industries later adopted.
Nelson Mandela Bay is heavily reliant on the automotive industry represented by Volkswagen in Uitenhage, General Motors in Port Elizabeth, the Ford Motor plant in Port Elizabeth and the soon to be completed FAW plant in Coega, Port Elizabeth along with all the second tier suppliers in both towns. Those with long memories will remember the tough times that our towns went through when GM dis-invested and Ford left Port Elizabeth.
Diversification from reliance on such a large sector for our local economy is paramount and we need our local government to cease with their squabbling, ignore their party political fighting and show the ratepayers that economic well being through jobs and innovation and NOT handouts is high on the agenda of those entrusted with our hard fought for money and lives.
Alan Straton
Latest posts by Alan Straton (see all)
- Soccer Laduma Rolls Out Opening-Weekend Premier League Betting Coverage for SA Fans - 23 August 2026
- What Return Are You Really Getting From Your New Business Tools? - 23 August 2026
- The Cape 1000 Roars Back: South Africa’s Most Beautiful Drive Returns in March 2027 - 23 August 2026
- HPV Vaccine: Answers To Parents’ Most Common Questions - 21 August 2026
- Martin Vermaak Attorneys Backs Families Through Divorce - 21 August 2026

Yeah, not good to be so dependent on a single industry. Hopefully PE can build up its tourism industry more.