A Tale of Two Detroits: Bankruptcy & Business

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Dec. 3 (Bloomberg) -- Bloomberg's Matt Miller and Andy Didorosi, founder of the Detroit Bus Company, discuss U.S. auto sales and the future of Detroit's economy with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Automobile saves -- sales figures.

It was a pretty fantastic month in the suburbs outside of the motor city.

That is can the problem that we can talk to andy about any second.

As far as what happened in dearborn, sales were up more than seven percent.

Chrysler be estimates with sales up 16%. her 44th month in a row of gaining sales.

Gm is also up 14% besting estimates.

The carmakers in detroit are doing very well.

They have a creeping inventory issue that we can talk about.

But as far as sales are concerned we are looking at a string of sales gains that we have not seen since the second world war.

Five years in a row of gaining sales.

You have good sales from the automobile makers.

What about actual transport in the city of detroit?

The automakers are still a big heart of detroit.

There are 700,000 people here.

Not all of them are affected by those auto jobs.

It has diversified a lot.

While the suburbs might be doing great, the city is lagging behind.

A lot of things we do is to to connect the city for the rest of the world.

Explain how you founded the detroit bus company.


In 2011, there was talk about the m1 light rail which would be a train from the suburbs into the city.

It is important for people to get to their jobs and also from people to get to the city from the suburbs and connect the region together.

In late 2011, they kill the project.

I thought, i am a business person, i will give it a shot.

I will buy some buses and hit the road.

We are here almost a year and a half later.

It seems to be working good.

You ended up purchasing buses.

Some cost about $2000. you try to get insurance for them.

The buses were old school buses from the school system.

They're well taken care of but rotated out.

I knew nothing about the transit world.

I called my insurance companies that i wanted to ensure a couple of buses.

They said it was public transit and it would not work.

That was the end of it for a little bit.

We hit the drawing board and look at the basis of what it was.

There are party buses that run around.

Those guys work.

We've modified our business plan and call them back in a said it was no problem.

Since then, we have obviously grown our services a lot beyond just one route.

That was the start.

It was a lot asking the question the right way.

We can talk about the trek forever, but you are an interesting character yourself.

You are only 26, you did not graduate from college is, you founded a number of companies.

How did you get into this?

I started at 16 and it was buying and selling old cars.

Cars from police auctions, 100 bucks.

No one else wanted to you with them.

I was busing tables and thought a car had to be worth more than $100. i cleaned it up and sold one and at got me $1200. i had my first business.

It was very, very small.

It started in my dad's garage.

Pretty soon, i am on my fourth is now.

I've gotten into property liquidation, i have gotten into real estate, buses.

There is a lot of opportunity in detroit that some other people do not want to see.

It looks a lot like hard work.

Is this going to take place of what is the current nonexistent public transport for the people of detroit?


i still firmly believe the transit is a public thing.

It should stay a public angered -- public thing up.

It is simply underfunded.

There are a lot of.

We have to fill those gaps but alongside the public infrastructure.

We can hopefully build some technology that they can build it -- use as well.

We'll have a couple of buses and they have to work harder.

With these methodologies, we can bring them to the public level and hopefully improve the system as a whole.

What are you doing in the field of wireless?

From day one, our buses had gps trackers.

You could see were the buses at our on your phone.

We just use some android phones and hack them to you -- work for our purposes.

We also have onboard wireless internet.

The buses act as mobile hotspots for the writers and the neighborhood.

We are also going to be building these properties.

We will have dynamic routing soon which will be a service similar to herbert -- huber -- uber so the buses will be able to get where they need to go.

It sounds very cool.

When of the things i've been wondering as we report on the bankruptcy story is, what about the population?

Mentioned there are only 700,000 people.

That is less than columbus, ohio.

Are they going to continue losing population?

Is going to plateau?

What is the story?

I think we are going to gain more people in the city center.

I am watching a lot of white friends and family move into the city.

I'm watching new businesses pop up.

Apartment rentals are completely fully city.

-- full in the city.

They're waiting for more to get built.

That is a good sign in the near- term.

On the long term, they need to get detroit -- they need to get families in detroit going to be there and that is not there yet.

It will be a very long time.

It is not what everyone wants to hear, but it is the reality.

There is a gap in reality -- there is a gap in transportation and in education.

Speak to that issue.

In detroit, there are a few jobs.

The automakers play a fig -- play a big role.

The jobs are still out in the suburbs.

The city just kind of moved outwards.

The issue is that a lot of the buses stopped running.

The two systems do not work together.

They do not show each other on each other's maps.

It is very difficult to connect to either the system.

If you have a job and you don't have a car, you're at the whim of the system if they have a router not.

One canceled route can mean 1000 people of their livelihood.

It sounds dramatic but it is true.

They don't tell you that the buses stop running at midnight beyond that.

You cannot get out of the city -- city after midnight because the smart system stops running there.

What does it cost to take a detroit city bus company bus?

Our biggest service is actually completely free.

We get kids from their schools to the after school programs and home.

If they attend these programs, they are more likely to graduate and be successful in later life.

They weren't attending because big bust straight home -- because they get bussed straight home.

This text has been automatically generated. It may not be 100% accurate.


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