First responseAutomakers help Detroit emergency services

General Motors, Ford Motors, and the Chrysler Group joined Blue Cross Blue Shield of Michigan, Quicken Loans, and several other businesses in the Detroit area to donate $8 million for new ambulances and police cars, on the same day that emergency manager Kevyn Orr started his job.

Yahoo News reports that Detroit’s ambulances are outdated and have been prone to mechanical failures. In the last three months, emergency responders have been forced to operate with between ten to fourteen ambulances. Normally, the city uses nineteen, but several vehicles broke down.

According toDetroit mayor Dave Bing, some of the ambulances have anywhere from 250,000 to 300,000 miles on them, and they must be  replaced.

“This is an unprecedented collaboration between the business community and the mayor’s office,” Bing said.

Roger Penske, chief executive of Penske Automotive Group Inc, led the effort to fund the emergency services. The donation took some of the press away from the fact that Orr, a bankruptcy lawyer, began his job as the emergency financial manager for the city.

Orr was appointed by Michigan governor Rick Snyder to improve the finances of the city, which is running a $100 million budget deficit during this fiscal year. The city has  $14 billion in long-term debt and liabilities according to a state government report.

In 2009, Orr worked on the Chrysler bankruptcy and restructuring, but he is not likely to receive a bailout from federal and state government for the city of Detroit, so his job will be harder this time around.

Orr will have the authority to change union contracts, lay off workers, and merge or close whole departments of city government. Orr’s powers will supersede that of the elected mayor and the city council in many areas.