The Detroit Three could donate millions of dollars in an effort to help save assets of the Detroit Institute of Arts from being sold during the city's bankruptcy.
DETROIT, MI- The Detroit Three could donate millions of dollars to help protect Detroit Institute of Arts assets from being sold in city bankruptcy proceedings.
The Detroit Free Press today reported that the DIA asked General Motors Co., Ford Motor Co. and Chrysler Group LLC to contribute more than $50 million as a group. The actual donation, according to the newspaper, may be closer to $25 million.
Representatives of each of the automakers and their philanthropic arms confirmed that the organizations are considering the request for donations, but would not offer any exact details.
"Ford has been a long-time supporter of the DIA and its contributions to southeast Michigan," said Ford Fund spokesman Todd Nissen in a statement. "We are having confidential discussions with the DIA and are considering the matter very carefully."
GM's statement echoed that of Ford's: "The DIA must be central to any plans for a revitalized Detroit. Both GM and the GM Foundation are giving very careful consideration to how we can help preserve this treasure at such a critical time."
A Chrysler spokesman, in a statement, also said the company "is committed to playing a positive role in Detroit's revitalization" and the company is "reviewing the DIA's request."
The Detroit Three could reportedly donate tens of millions of dollars in an effort to help save assets of the Detroit Institute of Arts.The DIA's assets have been a central point of concern as Detroit looks to slash debt in the largest municipal bankruptcy in history.
Of about 66,000 works of art managed by the DIA, 2,781 were purchased, at least in part, with city funds, according to an appraisal firm hired by Emergency Manager Kevyn Orr's office.
Christie's Appraisals found the total fair market value of those pieces to be between $454 million and $867 million.
A group of city creditors looking to recover as much debt as they can have filed vast records requests seeking information on the value of the museum's collection.
Widespread outrage over the idea of selling the art to pay the city's debts led charitable foundations, museum donors and the governor to propose a settlement now known as the "Grand Bargain," in which more than $800 million in aid would go toward boosting Detroit's troubled pension funds in exchange for protecting the collection from sale.
The plan would accelerate a resolution to Detroit's bankruptcy, funnel money to retirees facing benefit cuts, and protect the museum's valuable masterpieces.
The state legislature on Tuesday began committee hearings on legislation that would authorize the state's contribution to the settlement.
DIA officials have backed the plan: "Today is an historic day for the City of Detroit and, indeed, the entire State, and we at the DIA are very proud to be a major contributor to the Emergency Manager's and Governor's efforts and to be the custodian of this great museum," said Eugene A. Gargaro, Jr., chairman of the DIA Board of Directors.
Michael Wayland covers the automotive industry for MLive. Email him at MWayland@mlive.com & follow him on Twitter @MikeWayland or Google+.