President Barack Obama addresses the nation in State of the Union (Image: File)

Speaking before a jam-packed congressional chamber and millions glued to the tube, President Obama boldly declared in his State of the Union address Tuesday night to use his leadership toward producing an economy “built to last.” His “blueprint” calls for, among other initiatives, a high-tech reboot of the nation’s manufacturing sector, tax code changes to reward firms that “would bring jobs back to your country” and a series of policies promoting financial equity for middle class and poor Americans.

In the speech, Obama took aim at financial institutions engaged in abusive lending practices and corporations and wealthy individuals not paying their fair share of taxes, focusing on “fairness…the defining issue of our time is how to keep that promise alive… We can either settle for a country where a shrinking number of people do very well, while a growing number of Americans barely get by. Or, we can restore an economy where everyone gets a fair shot.”

In the Republican rebuttal delivered by Indiana Gov. Mitch Daniels he characterized the Obama Administration as “a divisive failure that has chosen class warfare and stifling big government over economic progress.” Even before the address, other GOP opponents—from House Speaker John Boehner to presidential contender Mitt Romney—jumped on this class warfare bandwagon.  The president counterd: “You can call this class warfare all you want. Most Americans would call that common sense.”

Watching from the press gallery, I was struck by the diffrence in Obama’s tenor from last year’s lofty “plan to win the future.” Though upbeat, his remarks melded forceful urgency, industrial innovation and economic populism. It also offered some clues on how he will frame his re-election campaign going forward, highlightinmg myriad economic achievements—rescuing the nation from another Great Depression, providing pay equity for women, resurrecting the auto industry (“Today, General Motors is back on top as the world’s No. 1 automaker…”), to name  just three—and touching on foreign policy accomplishments—taking out Osama bin Laden, ending the Iraq War—while making the argument that future prospects under a second term of Obama will prove far better than the GOP alternative.

The president prefers across-the-aisle collaboration to open warfare. But expect him to display more steel when it comes to dealing with the type of politcal antics that almost shut down the government last year and threatened to wreck the recovery. He asserted: “As long as I’m President, I will work with anyone in this chamber to build on this momentum. But I intend to fight obstruction with action, and I will oppose any effort to return the very same policies that brought on this economic crisis in the first place.”

So it’s clear he’ll continue to deploy his six-month-old “We can’t wait” strategy—a combination of using the presidential bully pulpit to pressure Congress to pass his legislative agenda as well as implementing select initiatives through executive action and enforcement powers.

In his remarks, he prodded  congressional Republicans to stop “a tax hike on 160 million working Americans while the recovery is still fragile… Let’s agree right here, right now: No side issues. No drama. Pass the payroll tax cut without delay.” Currently, the deal cut between Democrats and Republicans for a two-month extension of the payroll tax holiday in late December is set to expire shortly. And he also asked Congress to present him with tax reform legislation for companies that create domestic jobs as well as bills that bolster small business development and energy innovation. As for housing , “I’m sending this Congress a plan that gives every responsible homeowner a chance to save about $3,000 a year on their mortagage by refinancing at historically low interest rates.” And once again he proposed additional changes to the tax code—the so-called Buffett rule named after Warren Buffet, the second richest man in America—in which those earning more than $1 million a year would pay a minimum income tax rate of at least 30%. The GOP continues to reject the measure.

In terms of applying executive privilege, Obama said he will ask Attorney General Eric Holder Jr. to create a special division using federal prosecutors and state attorneys to investigate abusive lending. The president would also develop a beefed-up trade enforcement unit  to pursue unfair practices employed by foreign countries—most notably China. Moreover, he plans to sign an Executive Order next week “clearing away the red tape that slows down too many construction projects” but readily admitted Congress has to authorize funding  Obama did install his Consumer Finance Protection Bureau Chief through a recess appointment, however.

In talking with political observers today, one area that he failed to address with policy initiatives, however, is the alarming rate of poverty.

Despite the inevitable dogfights, Obama stated that Washington politicans will continue to get a black eye from the public if they don’t “learn from the service of our troops.” He opened and closed his address with references to the selflessness and honor displayed by our young men and women in uniform, and  specifically pointed to the Navy SEAL team that killed Bin laden by placing mission above individual differences.

Bridging that politial chasm, he stated, would result in a a nation that is truly built to last.

BLACK ENTERPRISE spoke with Butler at the North American International Auto Show in Detroit to talk about the future of GM and how marketing will play a role in the company’s efforts to re-attain dominance.

With all that GM has gone through over the last few years, how would you encapsulate the marketing strategy for returning the company to where it used to be in terms of dominance?

Don Butler: The public face of GM to our consumers will be through our brands—Chevrolet, Buick, GMC, and Cadillac. That is how we’re going to communicate. There is no longer going to be any GM advertising. Because, number one, let’s be fair: there’s a stigma associated with General Motors. There still is.  There’s not so much that same stigma associated with each of the brands.  That’s how people engage and interact with us. They engage and interact with us through Chevy, through GMC, through Buick, and through Cadillac. They don’t interact with GM.  They interact with the [individual] brands.

The second thing is knowing that that’s how we’re going to go to market. This had existed in the past.  But we’ve refined it even further. Each of our divisional brands now has a swim lane. What do I mean by that? Cadillac means certain things. We will stay true to that. It’s different than what Buick is. It’s different than what Chevy is. It’s different than what GMC is. In a sense, we need to be our own company. We need to be our own idea and our own aesthetic. So, Cadillac is all about what we describe as red-blooded luxury. Passionate, assertive, confident, charismatic, maybe even a little bit swagger, shall we say.  Contrast that with Buick. Very warm, luxurious, and a sense of being understated. Cadillac is not understated. Chevrolet, for the people.  GMC, professional grade.  Professional level of engineering and excellence.

So, that’s how we separate the brands and that’s how we go to market.

How are you using social media to get to that younger audience?

Butler: We leverage Facebook extensively.  That is our primary social space platform.  We find it to be quite useful in terms of presenting the brand and being able to have branding that is not obtrusive. So, on our Facebook page we have gone from 200,000 fans to over 700,000 fans [over the  last year]. We do that through engaging content that causes people to stop and take a look.

For instance, with ATS, we’ve been featuring a video series that we call The Journey, which has documented some of the development of ATS, including the engineers at the Nurburgring in Germany. Filming them actually doing the testing. We put that content on the web. That’s content that you wouldn’t find anywhere else. It’s engaging, it’s relevant, it’s also social. So, that’s how we engage and connect with our consumers there. We also have a presence, obviously, on Twitter. We make extensive use of YouTube as well in terms of our own video channel and then things that hopefully people can engage with and that we can promote virally as well.

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I understand you also do a lot of focus groups with regards to design and coming up with design, getting feedback from consumers. Are you intentionally looking at younger people to be part of those focus groups?

Butler: We do extensive research. Not so much to the point that we are kind of antiseptic and clinical about it. Because at a certain point, you’ve got to let intuition and emotion kind of weigh in, particularly when you’re talking design. You want to lead. It’s the Wayne Gretzky analogy. You don’t want to go where the puck is. You want to go where the puck will be. So to some extent, you have to understand and interpret the feedback that you get from consumers. If they say, oh wow, that looks like a reach. Well, is that a reach that will become fresh at a certain point in time? Or is that a reach that you’re reaching and you aren’t going to get anywhere with that because it’s still going to be out on the fringes?

So, we have to be careful to interpret what we get back from the research. But we have two groups.  One group that we call young adult males, or YAMs, [are] under 30. We intentionally recruit on that basis. And we recruit also based on competitive ownership—so, those owning BMW 3 series, for instance. We bring them into our clinics.  We also have a group that we call YAFs, young affluent females. We do two different groups, male and female because—particularly when you’re in a focus group setting—you want to make sure that one group doesn’t dominate the conversation. You want to make sure you get all the views that are aired. Then there’s certain things that come out when you have like-minded people sitting around the table.

Some of these interviews are conducted in the subject’s homes. Why is that?

Within focus groups, you have to be careful of group thinking and the setting that you’re in, and then how that would influence the information that you receive.  So, we spend a fair amount of time literally at people’s homes—two, three hours. They talk about their lives. They talk about what they do. They talk about how their home fits into their life.  They talk about how their car fits into their life. They talk about style and their clothing and their furniture. We really go in-depth. You have to be careful the people that you pick because you want them to be representative of a broader population. But the depth that you’re able to get to and how relaxed people are in that environment, you get really, really keen insights that you wouldn’t get otherwise.

The Cadillac ATS was introduced to the media a few days ago. Who are you trying to reach with that vehicle?

Butler: In some ways, you could say the ATS is our most important launch in decades. ATS represents for us our first truly credibly entry in the largest luxury segment, both in the US and in the world.  Compact luxury is the largest luxury segment.  Within the US, over 370,000 units are sold.  So for us not to have a presence there, it’s a huge handicap.  It’s a huge handicap from a volume and image standpoint. With ATS, [it's] an all-new, fresh, bold step for Cadillac into a territory that quite frankly we haven’t been in before.  These are also the youngest buyers within the luxury segment. These are, for the most part, people just entering luxury, just deciding to use that form of expression for themselves.

The other thing with ATS is it is our most direct, head to head competitor with some of the key luxury makes. BMW and Mercedes, for instance. The 3 Series, C Class. This vehicle will go head to head right on with those vehicles. CTS has been more of a bridge between a three and a five or between an C and an E. So, now with ATS, we are directly targeting our main competition. We’re doing it, we believe, with a bold statement for Cadillac. So, it represents a volume opportunity and it also represents and image opportunity for Cadillac.

General Motors' Vice President of Global Design, Edward T. Welburn

As General Motors‘ Vice President of Global Design, Edward T. Welburn is currently the highest-ranking African American in the auto industry. The 60-year-old graduate of Howard University has spearheaded the design of many of GM’s best-selling vehicles, including the Chevrolet Camaro, Cadillac CTS and Buick LaCrosse.

BLACK ENTERPRISE recently spoke with Welburn following the Los Angeles Auto Show where GM unveiled the CUE (Cadillac User Experience), an onboard information/entertainment system the automaker says brings the functions of tablet computers and smartphones to the driving experience. Here’s what Welburn had to say:

BlackEnterprise.com: Many of the new vehicles shown at the LA Auto Show seem to be bolder in design, less cookie cutter than in the past. Is that a result of designers like yourself having greater influence in General Motors than in past years?

Welburn: Well, I can only speak for General Motors and it’s a couple of things. First off, the recognition by the leaders of our company of how important design really is in the success of the company. And it’s a very complex auto industry with so many brands [so] a brand needs to make a significant statement to be recognized in the industry. The leadership at General Motors recognizes how important design is in really establishing a brand, a distinction with a brand in this industry.

The vehicles now are much more high tech. It’s almost like a convergence between your mobile device and your vehicle now.

Yeah, and it’s changing rapidly. I feel very good about the work of the CUE system that Cadillac has in place and really the work we’re doing with all of our brands. At the moment, I’m driving a LaCrosse and I just feel very good about what’s in the interior of that vehicle. Now with the CUE system with Cadillac it goes to yet another level. But these technologies are so much a part of everyone’s everyday life. And you should not take a technical step backwards when you get into your automobile. What is so great about the CUE system is that it really allows the driver of the car to really dial in as much or as little as he or she wants to have as their driving. And in no way does it make driving more difficult or more challenging. In fact, it should, and it does make driving easier.

Much of GM’s sales are now generated outside of the US. When looking at designing a vehicle, do you look at specific regions to see whether design might appeal to a particular area?

The cultures are different around the world, but our customers are exposed to the same information. We introduced a new vehicle at the San Paulo Brazil Auto Show and I’m getting emails within one minute from people in the United States and Europe with their reaction to what we just revealed. The world sees everything we do and they’re exposed to it all. As a result, many of our vehicles can play well around the world.

Cruze is a good example that is extremely successful wherever it goes, but wherever it goes, we do fine-tune the design to that environment. From a technical perspective it’s more in the right in handling and it may be in the power train that’s a bit different. From a design perspective, the color pallet is different, the materials and the interior may be different. But the basic vehicle is the same worldwide. So there’s an example of a vehicle that does play well globally. It’s a compact vehicle and it goes right at that very, very important compact segment around the world. In some markets, it’s more a luxury vehicle compared to everything else. Its role is a bit different. We do have designs that we’re developing that very much focus on the emerging market that are a bit different than vehicles we do for the more established market. And they’re very, very affordable vehicles. In some ways, very basic, but no matter where the market is, our customers are looking for very fresh designs.

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Welburn with a 1953 Corvette

Speaking of customers, GM has recorded several profitable quarters since emerging from bankruptcy and vehicle demand has been coming back. But do you think the high volumes we’ve seen in the past will ever return? And if so, what do you think needs to happen before you start seeing those numbers again?

I’m a car designer and I cannot tell you exactly what those numbers will be, but those numbers will come but maybe not in the same locations that they were in the past. The world is changing in many ways and as you said earlier, we sell as many if not more cars outside the United States as we do inside. The market in China is growing at a significant rate and continues to grow. There will be growth in other areas around the world, as well, as those markets develop and change in significant ways. And I believe the real intensive push on new product and different product and different vehicle types and more fuel-efficient vehicles will really appeal to an awful lot of people and sales will be very strong.

Do you think African-American representation in your field is where it should be and if not, what can be done to see more Ed Welburns out there?

Would I like to see more African Americans in design? Yeah, I’d like to see more guys who are crazy about cars in this field. The number of African-Americans in General Motors design is lower than the percentage nationally, but the African-Americans that we have at General Motors are in significant leadership positions developing absolutely dynamite cars and I could not be more proud of the work they do. Today, there are select few schools that have a major in car design. And most of our designers come from those schools where they have a real concentration on that subject. When they’re hired here, they are ready to be put on significant projects, day one. We do still hire people who are graduates from schools of fine arts and that type thing, but it’s a bit more of a challenge.

So, when I visit the schools of design, the big significant schools of design have a real area of focus on automobile design or major in automobile design, I don’t see many African Americans. I have talked to the presidents of a couple of the schools and they know that I would like to see more African-Americans in design at General Motors. The feeder system doesn’t have any and we are working together to improve that feeder system. We’re working together on that. That’s the only way it will happen, is that if I work with the universities. And so we now have programs in place to help identify young people in public schools. You can’t start your senior year in high school and it’s very difficult at that point. So we have to go down deeper than that. So it is a long-term commitment. And we don’t make big public announcements about it, press conferences about what we’re doing. We’re just doing it. We’re just quietly doing it. And it’s starting to show some benefit. They’re people in the pipeline now.

Chevy's new beach comber (Image: GM)

2011 CHEVY CAMARO CONVERTIBLE

• MSRP: $36,185 (Base price starts at $30,000)
• Engine/Horsepower: 3.6-liter, V6/312
• Fuel Mileage: 18-city/29-hwy
• Highlights: GM’s OnStar Roadside Assistance/Concierge Service; a 6-speed manual transmission; power top; 19-inch wheels; dual exhaust pipes; rearview parking assist sensors; an 8-speaker audio system with 10 subwoofers; an auto dimming rearview mirror; leather seats; fog lights; rear heated glass window
• Competition: BMW 3-Series convertible and Ford Mustang convertible

WHAT’S NEW:

Last year, the Camaro outsold the Mustang without having a convertible in its line up. It’s been over 25 years since the Camaro last wore the new-vehicle sales crown and with the sporty convertible model as an all-new addition to the line up for 2011 Chevy may hold on to its position.

PROS:

Having a canvas drop top in a 312-horsepower Camaro just heightens the cool factor in this four-seater muscle car. In fact, the vehicle looks just as hot with the top up, as it does topless. For a price point in the $30,000 range, this is definitely within reach for most car buyers.

Let your hair down in the Chevy Camaro (Image: JeffCars.com)

With Chevy’s new addition, the convertible top on the Camaro can be easily raised or lowered at the push of a button and twisting a latch to lock it in place. Actually, the car doesn’t have to be parked for the top to be activated, allowing for spur-of-the-moment lowering while stopped at a stoplight. And while the top is down, an optional dealer-installed windscreen can be installed behind the front seats to limit wind buffeting.
Also, unlike convertibles of the past, the body doesn’t twist or turn when driving over bumps. The folks at GM were able to do this by bolstering the structure of the suspension rather than softening it. This results in a convertible that preserves nearly all the acceleration, road-holding and performance capabilities we found in the Camaro coupe. Added to that, GM engineers reinforced the structure of the vehicle by improving the noise and vibration characteristics, while also contributing to the elimination of cowl/steering wheel shake, which was a common problem of past convertibles.

Furthermore, adding the RS package, which consisted of 20-inch painted wheels, high-intensity headlights and a rear spoiler, enhanced the overall appearance and ride of the convertible I reviewed. Chevy’s engineers also gave the Camaro convertible a clean look by placing the AM/FM radio antenna inside the rear spoiler. According to the folks at GM, this patent-pending design creates a sleeker appearance. For LT models without a rear spoiler (without the RS package), the combined antenna is located in the center of the deck lid.

CONS:

Ironically, due to the frigid temperatures and the ATL’s recent stormy days, I spent more time with the canvas top up than down. While “Hotlanta” didn’t live up to its name, I managed to squeeze a few snapshots with the top down—before the frigid dreary weather returned.

Chilly nights require a little more cover (Image: JeffCars.com)

And like most convertibles, the trunk space is limited when the top is down. Now while the relocation of the trunk lock switch cylinder cleans up the Camaro’s appearance, it seems quite unusual to find the trunk release switch located between the rear seat back cushions. (As a side note, the keyless remote fob also offers easy trunk access without looking for the trunk switch).

FINAL VERDICT:

With additions like the convertible being added to the Camaro line up, the cool-looking sports car will continue to give the Mustang convertible a run for its money. The drop top Camaro’s fresh, eye-catching appeal is sure to win over a number of Ford buyers and possibly a number of import converts, too. With the top up or down, this well-built convertible is a winner in my book. Both young and old will be saving up their coins to relive the old days again with the spanking new Camaro convertible.

Jeff Fortson is an auto analyst and editor of a car-buying website for women and minorities. To learn more about his popular car-buying workshop and/or to price a new-vehicle, drive on over to JeffCars.com.

Cruze takes control of the compact market (Image: JeffCars.com)

2011 CHEVY CRUZE TURBO

• MSRP: $21,325 (Base price starts at $16,995)
• Engine/Horsepower: 1.4-liter engine/138
• Fuel Mileage: 26-city/37-highway
• Highlights: 6-speed transmission; remote keyless entry;16-inch wheels; limited subscription satellite radio; OnStar’s concierge service; rear seat center armrest with integrated cup holders; air condition; tilt-and-telescopic steering wheel; traction control
• Competition: Ford Focus, Honda Civic, Hyundai Elantra, Kia Forte, Mazda3, Nissan Sentra, Toyota Corolla, VW Jetta.

WHAT’S NEW:

Not only does Chevy’s compact sedan get a new exterior design, but a new name, too. GM has sent the aging Cobalt to car heaven, replacing it with the all-new, world-class Cruze. Unlike the Cobalt, which was available as both a coupe and sedan, the Cruze is currently available as a sedan. Sweet!

PROS:

Besides a new name, the big change for the conservatively designed compact is its upscale, premium-class, two-tone interior with its sliding front-center armrest and richly detailed instrument panel that’s backlit with ice-blue LED technology. This is the same high quality design one can expect to find in the upscale Lexus-like Buick LaCrosse sedan. The Cruze is outfitted with features typically reserved for higher priced vehicles. The vehicle I tested was equipped with a nine-speaker audio system, power driver’s seat, rear audible parking sensors and a remote vehicle start system (an app is available, too).

Plush leather drapes the interior of the Cruze (Image: GM)

Also, leather heated front seats, a nav system, lighted doorsill plates, 18-inch wheels and a tricked-out version of the Cruze known as the RS is available. The RS Appearance package enhances the styling by adding rocker moldings, a rear spoiler and fog lights.

Unlike the vehicle the Cruze replaced, the front seats no longer make passengers feel like they’re seated on the floor. The roomy front seats are both supportive and comfortable.

CONS:

While this is arguably the best compact vehicle that GM has ever built—excluding the joint venture vehicles they once had with Toyota—there’s still some room for improvement. The $21,000 Cruze I reviewed lacked an optional power sunroof, keyless push-button starter and lighted vanity mirrors. It also lacked an in-dash navigation system. However, GM’s subscription-based OnStar System offers a unique turn-by-turn system, which provides the directions on the radio screen. Unfortunately, after the six-month free subscription expires, drivers will have to pay out of pocket for the service. Now for those stepping into the 2LT and LTZ trims, a nav system is available. While the vehicle is loaded with equipment expected on larger vehicles, the lack of rear seat legroom will immediately remind you that this is a compact.

FINAL VERDICT:

While pricing for the base Cruze starts at approximately $17,000, a well-equipped Cruze can easily zoom to $27,000, going head-to-head with a well-equipped full-size Malibu. That’s a tad too much to pay for a compact.

Besides pricing, though, this is arguably one of the best compact sedans on the market. It should be interesting to see how the Cruze stacks up against the upcoming redesigned Ford Focus and Honda Civic when they hit the market later this year.

Jeff Fortson is an auto analyst and editor of a car-buying website for women and minorities. To learn more about his popular car-buying workshop and/or to price a new-vehicle, drive on over to JeffCars.com.

• MSRP: $49,330 (Base price starts at $45,220)
• Engine/Horsepower: 3.6-liter, 6-liter/288
• Fuel Mileage: 16-city/23-highway
• Highlights: Remote keyless entry; 20-in chrome wheels; second-row skylight; power liftgate; heated and a/c front leather seats; second-row captain chairs; back up camera; Bluetooth connectivity
• Competition: Buick Enclave, Ford Explorer Limited, Ford Flex Limited

WHAT’S NEW:

For the 2011 model year, GMC expands the Denali name to its midsize crossover line to the Acadia. This well-equipped, tricked-out crossover vehicle is outfitted with a chrome grille, monochromatic exterior color and high-intensity discharge headlamps (HID), along with the premium-class interior features noted above.

PROS:

The Denali name is synonymous with the term luxury. Before this upscale model was added to the 2011 lineup, its sibling, the Buick Enclave was high on my list. Now, since the Arcadia Denali has arrived, it has soared to the top of the list, offering swag-appeal and many of the luxury amenities one would expect in a vehicle priced in the high 40s.

In addition to the aforementioned standard features, the upscale crossover I reviewed was outfitted with a touch-screen nav system, which featured real-time traffic updates, and an entertainment system that included a DVD player with a set of headphones.

The only optional feature that was omitted from our cool-looking street cruiser was a second-row center console to compliment the sliding second-row captain chairs. (As a side note, for those not wanting the captain chairs, bench seats can be substituted without any additional charges.)

A luxurious ride from front to back (Image: JeffCars.com)

CONS:

Although this is one of the best crossovers I’ve driven, the vehicle lacked a few features I’ve come to expect on most premium-class vehicles priced at $49,000. While they weren’t available features, I was disappointed that the truck lacked the latest blind spot lane changing technology, a push-button keyless starter and a heated steering wheel to compliment the heated and cooled front seats. Also, the standard third-row bench seats are strictly designed for kids, as opposed to adults for long trips.

FINAL VERDICT:

The tricked-out Acadia I reviewed combines the best of luxury with cool-appeal. Not only is this vehicle easier to maneuver than the full-size Denali SUV it mimics, the Acadia does it with flair, all while sporting 20-inch chrome clad wheels.

If you’re in the market for a smooth-riding, premium-class vehicle that stands out in a very crowded segment, the Acadia Denali should be at the top of your shopping list. And so that the price doesn’t approach the $50,000 range, consider steering away from the entertainment system and the all-wheel drive model. Without those features, this should push the price of this seven-passenger crossover down to the low to mid 40s, before rebates and negotiation.

Jeff Fortson is an auto analyst and editor of a car-buying website for women and minorities. To learn more about his popular car-buying workshop and/or to price a new-vehicle, drive on over to JeffCars.com.

Detroit's school system is getting a failing grade (Thinkstock)

Detroit is in trouble—again. The city’s public school district continues to grapple with a $327-million budget deficit, resulting in painful cuts for staff and students. If an alternate solution isn’t implemented, the district will be forced to shut down half of its schools by 2014, pushing the average high school class size up to 62 students, run by offsite regional principals.

While decision-makers describe the plan as a draconian solution, time is running out and early stages are already in place as the school system buckles under the deficit. “That’s what the current law requires us to do,” says Steve Wasko, Executive Director of Public Relations for Detroit Public Schools. “We call it Plan A. We have porous boundaries and it would further drive parents away from our school system, but it is the plan to exist.”

In response, Detroit educational leaders are meeting with state officials, scrambling to advocate for at least two alternative plans. “We’ve been generating long term proposals to share with elected officials in Lansing,” Wasko says. One plan under consideration includes a proposal that was submitted for President Obama’s “Race To The Top” initiative, which includes the elimination of teacher seniority. Another plan involves taking existing debt and discarding it, similar to a General Motors style restructuring. Detroit officials have also been looking at models used in New Orleans post-Hurricane Katrina for federal funding to drive academic reforms.

While Detroit residents pay considerably higher property taxes than the surrounding suburbs, the city’s population has decreased significantly in the last decade due to a host of quality of life issues—including the economic downturn, lack of jobs and an increase in crime. The decline in the state’s economy has deepened the problems for the city’s schools, where funding sources have dwindled. In 2000, 180,000 students were enrolled in Detroit Public Schools. That number has since decreased to 74,000. Of the students left, more than 80% are from economically disadvantaged backgrounds, according to the Detroit Free Press. Classrooms are already overcrowded—averaging 35 students from sixth to twelfth grade—so doubling the class size will be a nearly impossible undertaking for teachers to handle effectively.

“What I worry about are people who live in the Detroit district, because of the budget cuts and financial problems, they will have to change schools and go to another district,” says DeWanna Arrington, a local high school senior who will attend Eastern Michigan University in the fall to study nursing. “I’m really worried about students who will give up and drop out. You need a high school education and some type of degree in college in order to get a job. I worry about the teachers that will lose jobs. There are really good teachers here.”

Detroit’s school district has been in a state of turmoil for nearly a decade, when a state takeover was implemented due to mismanagement and constant infighting between the school board and the superintendent. In February 2009, consultant Robert Bobb was appointed as the Emergency Financial Manager. In a November 2009 Black Enterprise article “Can Detroit Be Saved?” Bobb told BE’s Editorial Director Alan Hughes, “the school system must put in place, aggressively and urgently, methods for 21st century teaching and learning.” At the time, he was considering having the city’s school district file for bankruptcy, a proposal that was eventually abandoned.

Bobb’s contract ends this spring, but it’s likely to be extended until the end of the school year. “I don’t know if the state would appoint another financial manager, but it would be hard to imagine it without [one],” Wasko says. Under new state leadership of Republican Governor Rick Snyder, it’s unclear of how the change in governance will affect the city’s plight and what the next steps will be in the process.

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A possible future for Detroit's parents, students and teachers (Thinkstock)

Further complicating the advancement of a cohesive plan is an ongoing battle between Bobb and the school board that has played out in court over who controls academic decisions made in the school district. The disagreement is currently focused on who will choose the next school superintendent—the school board or the emergency financial manager.

The matriculation rate for Detroit Public School hovers at 58%, but schools have shown signs of improvement on test scores in recent months. “The academic situation has greatly improved,” Wasko says. In fact, the schools recently instituted a program in which every student from sixth to twelfth grade has access to a laptop.

While some credit Bobb with reining in excess spending, the cuts and decisions have created ire among some community members, parents and teachers. Already, 59 schools have been closed since Bobb was appointed in an effort to harness finances.

Teachers and staff have felt the pinch with forced retirements, layoffs and pay cuts. “We’ve had a brain drain,” says Lisa Mayowa Reynolds, who teaches at the Detroit School of Arts. After only 10 years, she is now among the senior teachers on her high school’s staff. Two of her children have graduated, one is in high school, and her youngest attends a Detroit elementary school.

“I think something has gone really wrong,” Reynolds continues. “I think that public school works. There are districts where they are effectively using their money. Since the state takeover 10 years ago we’ve had access to federal funds. When you try to put a business paradigm on a public institution, it doesn’t work.”

“We have to be innovative with our thinking to offer Brown and Black children the opportunities that touch them holistically that give them a chance at life through public schooling,” Reynolds says. “You have to have everyone who is affected at the table. You have to have people who are doing the work. You have to have students who see gaps. You have to have a team of people who have a vested interested—student, community and teachers.”

Let us know in the comments section what you think it’ll take to turn Detroit’s school system around.

For community members interested in learning more, Bobb will answer questions at an educational breakfast “What Comes in the Next Year and Beyond” on the University of Michigan-Dearborn campus on February 18, hosted by the Michigan Chronicle. To RSVP, contact Ann Lampkin-Williams at lampkin@umd.umich.edu.

Be sure to read these related articles…

• Can Detroit Be Saved?
• Kwame Kilpatrick’s 14 Most Scandalous Moments
• Detroit’s Battles

1956 Chevrolet Belair

Now that the dust has settled around the General Motors public offering, average investors who didn’t have access to the IPO shares are probably wondering how they can take advantage of the resurgence in global auto demand.

To be clear, General Motors’s recovery is a reflection of a broader trend. As the automotive industry rebounds from the devastating slump in sales it saw in 2008 and 2009, car manufacturers (and those who supply them with raw materials and other components) are expected to rally too.

According to a recent report from San Jose market research firm, Global Industry Analysts Inc., the world auto supply market “is projected to regain sufficient poise… to reach $329.8 billion by the year 2015.” The report projects a healthy annual sales growth rate of 5% over the same period. “Growth during this period will be driven by resurgence in new car purchases, reappearance of consumer preferences for sport utility vehicles and pickup trucks, and strong demand for alternative vehicles. Increase in automotive production and sales across Asian countries also augurs well for the market.”

BLACK ENTERPRISE talked to a handful market-watchers to get some investment ideas that play on this trend. What we found are four overlooked stocks with promise.

1) Tenneco Inc. (ticker: TEN, $36) Tenneco is a $2.15 billion (market cap)  manufacturer of supplies auto emission control products and ride control systems for car manufacturers around the world. “They benefitting from the whole global expansion of reduced global emissions—here in the U.S. and internationally,” says Joe A. Gilbert, portfolio manager of the Veracity Small-Cap Value Fund (VSCVX) at Integrity Asset Management. “Tennaco makes mufflers, and everything from the tailpipe back up through the car. With this stock, you’re taking part in the green theme—but you’re also getting in on global demand for cars, trucks. The stock has had a great run this year, but there’s more to come.”

2) American Axle & Manufacturing Holdings Inc. (ticker: AXL, $11) Simply put, this $767 million (market cap) company makes car axles, drivetrain systems, chassis modules, and other major components for all types of autos, from cars and SUVs to light trucks. Says Gilbert: “70% of their business is GM. If GM does well , these guys will do well.” Gilbert says an investment in AXL means you’re “getting in on GM’s coattails and riding the GM wave.”

3) Molycorp Inc. (ticker: MCP, $30) Molycorp Inc., a $2.5 billion (market cap) rare materials supplier, is the only producer of rare earth oxide in the Western Hemisphere. It also produces metals, alloys and magnets used in the making of many consumer and industrial products.  They also produce a mineral called molybdenum. What does all this have to do with cars? Arnett Waters, principal at A.L. Waters Capital, LLC, says “molybdenum, is a key element used to strengthen steel for car production and many other things.” Waters likes Molycorp’s prospects as a global supplier. “Outside of the U.S., China and India are building cars for their own countries. More and more of the materials they need are hard to find. If you’re looking for ways to invest in autos you need to be buying into companies that produce basic elements.”

4) Impala Platinum Holdings Ltd. (ticker: IMPUY, $30) This $18.4 billion (market cap) South African company mines one of the Earth’s most precious metals: platinum. One of the many reasons Arnett Waters likes IMPUY: “Platinum’s demand has been affected by the worldwide demand for cars. All cars will have catalytic converters going forward, and a key element used to make those converters is platinum.”

Related Links:

• Do the REIT Thing: Why some advisers suggest you invest in real estate investment trusts
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• PHOTO GALLERY: Black Enterprise and Porsche go for a spin

In celebration of our 40th anniversary, Black Enterprise is taking a look both forward and backward at the world of black business. Our list of 40 “Titans: The Most Powerful African Americans in Business–and How They Shaped Our World” recognizes and pays homage to the entrepreneurs and business men and women who paved the way for all of us. Follow our countdown of the most important black business leaders of the four decades since Black Enterprise Magazine was founded in August 1970.

These are the men and women who fought the odds, suffered setbacks, regrouped, and eventually emerged victorious. Whether they conducted business from their own offices or the executive suite, their professional excellence, deal-making prowess, and unwavering advocacy converted promise into channels of prosperity and levers of power. These are the pioneers who withstood the elements—institutional racism, resistance from the business establishment, and lack of resources—to plant a flag on their own patch of territory.

These are the titans: bold leaders who shattered conventional modes of commerce. Because of their contributions over the past 40 years, the world of business has been transformed forever.

Be sure to pick up the commemorative 40th anniversary August 2010 issue of Black Enterprise, which contains the entire Titans list.