20090126-NEWS--0001-NAT-CCI-CD_-- 1/23/2009 6:47 PM Page 1 ® www.crainsdetroit.com Vol. 25, No. 4 JANUARY 26 – FEBRUARY 1, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved Inside State rushes for share of Who’s Aretha’s hat-maker? recovery plan Page 3 Casinos try to deal Emphasis being placed with bad hands of debt, NEWSCOM While GM isn’t buying a television ad this year, it still will have a major presence on job creation, training Page 6 at the Super Bowl in Tampa, Fla. Cadillacs will be on display at the stadium, as in years past, and the brand will also sponsor the post-game show and the MVP Award. BY AMY LANE ployment rates. CAPITOL CORRESPONDENT The categories: infrastructure, such as roads, water and sewer; LANSING — As a federal in- schools; information technology frastructure investment and eco- and broadband; buildings; and News and information to nomic recovery plan rapidly “greening,” which includes ener- help with career transitions, Detroit sits takes shape, Michigan officials gy efficiency and alternative-en- are undertaking a giant internal ergy projects. Pages 22, 23 sweep to inventory projects, flag The teams are looking at pro- potential barriers and position posed federal funds, which pro- Find a job, discover a hire, the state to readily distribute jects are priorities, legislative or at crainsdetroit.com/ on ad sidelines whatever federal funds come its administrative changes needed way. to ensure money can be quickly careerworks A blueprint, initiated by Gov. spent, and logistics for carrying Jennifer Granholm, entails a out projects, such as permits Super Bowl too pricey amid cost cutting governmentwide effort in which that might be needed and the This Just In teams of state officials are scour- availability of contractors to do BY BILL SHEA ing thousands of potential pro- the work. CRAIN’S DETROIT BUSINESS DETROIT-FREE BOWL jects in five different categories. They are racing against a fast- MIS to be marketed as test In addressing state needs re- moving economic stimulus plan For perhaps the first time, the Ⅲ No Michigan-based company lated to the five areas, emphasis and a desire by President Barack lab for auto electronics Super Bowl telecast won’t include has bought ad time. is being placed on job creation Obama and others to target pro- advertisements from Detroit’s au- Ⅲ No Michigan ad agency is A plan to market Michigan and training, especially in re- jects that can be started and com- International Speedway in the tomakers and their ad agencies. doing work on this year’s 67 gions with the highest unem- See Recovery, Page 29 city of Brooklyn as a re- When the Arizona Cardinals and spots. search and testing facility for Pittsburgh Steelers square off in No Michigan NFL team has “connected vehicle technolo- Tampa for Super Bowl XLIII on played in the Super Bowl. gies” is scheduled to be an- Feb. 1, the only car ads during the Ⅲ Leo Burnett Detroit did the nounced today by track and game on NBC will be from Ger- 2008 Super Bowl’s lone local spot, for the GMC Yukon hybrid. state officials. many’s Audi and South Korea’s Some fear Medicaid funding The goal is to have the Hyundai. ROI for an ad this year, especially track help the state become a Detroit-based General Motors as we continue to reduce budgets “lab-to-assembly line” of Corp., Dearborn-based Ford Motor and scrutinize all our promo- such technology, which a Co. and Auburn Hills-based tions.” increase will be insufficient Michigan 2007 study from Chrysler L.L.C. all have said they Ford confirmed it was bypassing State University and Ann Ar- will forgo the annual NFL title the game, and New York agency will be a good amount of money bor’s Center for Automotive Re- BY JAY GREENE game — 30-second ads are going BBDO, whose Detroit office handles CRAIN’S DETROIT BUSINESS that will go to Medicaid and we search said could create for a record $3 million — amid ef- all of Chrysler’s ad work, said the won’t see any diminished access 16,000 to 41,000 high-tech jobs forts to cut costs. same thing. (BBDO clients Michigan’s Medicaid to care,” said Dr. Michael San- and contribute between $177 “GM’s decision not to buy an in- handled in New York, including providers were relieved last dler, president of the Michigan million and $448 million in game ad was made back in Septem- monster.com and General Electric, week when the U.S. House of Rep- State Medical state income tax revenues. ber, and was primarily driven by will have Super Bowl spots.) resentatives promised to increase Society. The wireless communica- the fact that we did not have a ma- It’s unclear when, if ever, all the Medicaid funding to the states HEALTH NEWS Without tion of information between jor vehicle launch that aligned major domestic car companies by $87 billion as part of an $825 the addition- vehicles, and between vehi- Down: HMO net with (the Super Bowl),” GM com- have skipped advertising during billion fiscal recovery package. al federal cles and road infrastructure, income. munications manager Kelly Cusi- the Super Bowl, which was first The additional revenue — as Up: Uninsured Medicaid See This Just In, Page 2 nato said in an e-mail to Crain’s. played in January 1967. much as $1 billion to $1.5 billion ranks, charity dollars, San- “This made it hard to justify the None of the region’s agencies for Michigan — could stave off care. dler said he that do nonautomotive advertising possible budget cuts to the Page 28 fears that work will have Super Bowl ads, ei- state’s biggest source of medical more doc- ther. safety-net funding. tors will drop out of the Medic- Local advertising industry in- Michigan health care execu- aid program. siders have mixed views on the Su- tives said, however, that the “As of now it covers 61 cents per Bowl, which is the one time of federal bailout might not be on the dollar,” said Sandler, a di- year viewers (and the game gets enough to offset higher costs to agnostic radiologist at Henry Ford more than 100 million of them) ac- care for the increasing num- Health System in Detroit. “Doc- tively seek commercials, which bers of Medicaid recipients. tors lose money on every Medic- pNEWSPAPER See Super Bowl, Page 29 “We are optimistic that there See Medicaid, Page 28 20090126-NEWS--0002-NAT-CCI-CD_-- 1/23/2009 6:17 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS January 26, 2009 pany had $40 million to $50 mil- ed $2 million in damages. The firm still has roughly 50 of deliberation, a federal jury THIS JUST IN lion in revenue this fiscal year — C-4 handled Chrysler L.L.C.’s agents, he said, though 10 decid- awarded Lathrup-based Michigan which ends in March — with events for six years and was re- ed to stay with Re/Max. First Credit Union $5 million in ■ From Page 1 roughly 4 percent of its business sponsible for the popular Fire- — Daniel Duggan damages against its former in- coming from Michigan. house charity event for media surer, Wisconsin-based Credit is aimed at improving safety and CEO Richard Bergsund said in a and industry executives during Union Mutual Insurance Society, in traffic flow. statement Friday that Michigan the auto show. The struggling car- Advanced Photonix wins a case growing out of a series of Behind the effort to market the residents are missing out on a maker said last spring it was drop- 2 Air Force contracts bad loans in 2003. track for such technology work large array of wine that is not ping C-4 in favor of Royal Oak- The jury found that the insur- Ann Arbor-based Advanced are the Michigan Department of currently available in stores. He based O2 and a New York firm. er breached its contract when it Photonix Inc. (NYSE: API) an- Transportation, CAR’s Connected urged residents to contact Gov. C-4’s final event was this year’s refused to pay for losses result- nounced Friday that it won two Vehicle Proving Center and Michi- Jennifer Granholm, who signed the General Motors Corp. auto show ing from hundreds of defaulted U.S. Air Force gan Economic Development Corp. bill on Jan 9. Under the new law, press conference. It also did work contracts with the . auto loans approved under the The contracts are a $100,000 Those agencies are scheduled to wine can be delivered by an em- for Audi. supervision of a former credit small-business innovative-re- jointly unveil the MIS plan dur- ployee of a retailer, but not — Bill Shea union vice president, Michael search grant to develop semicon- ing a press conference Monday at shipped through a third-party Lewis. ductor material capable of in- MDOT’s Michigan Intelligent service such as UPS. The jury held that the loans creasing terahertz power, and a Transportation Service Center in — Daniel Duggan Real estate office drops Re/Max were made in violation of credit $750,000 contract to develop a Detroit. union policy. franchise, changes name higher-power terahertz transmit- MDOT is using the race track to Chuck Holzman of the law firm A Chesterfield Township real ter for surface and gas spec- test the technology it plans to de- C-4 Communications closing of Southfield-based Holzman, Rit- estate office has given up its troscopy.