The Detroit Institute of Arts has announced that three of the city's automakers have pledged a total of $26 million in support of a "grand bargain" designed to offset pension and healthcare costs for retired city employees and prevent the institute's collection from being sold.
The pledges of $10 million from the Ford Motor Company Fund, $6 million from the Chrysler Group, and $5 million each from General Motors and the GM Foundation will count toward DIA's commitment to raise $100 million for the "grand bargain" proposed by Chief U.S. District Judge Gerald Rosen. As part of the deal, which will provide city pensioners with more than $800 million from donors, foundations, and the state of Michigan over twenty years, the city will transfer ownership of DIA's collection, building, and related assets to the private nonprofit corporation that currently operates the museum.
To date, the DIA campaign has secured commitments totaling $70 million toward its goal, DIA board chair Eugene Gargaro, Jr. told the Detroit News. The automakers' pledges will likely lead to smaller but significant contributions from the city's auto suppliers and other corporate players, including DTE Energy, which is expected to contribute roughly $5 million, and Dan Gilbert and the Quicken Loans family of companies, which are considering a similar-size contribution, the Detroit News reports. Industrialist Roger Penske and Blue Cross Blue Shield of Michigan also are expected to join the campaign as pressure builds to secure the deal before July 11, when the city's creditors finish voting on the debt adjustment plan.
"[W]e are extremely pleased and appreciative of this remarkable financial commitment by the leadership of our corporate community to support the grand bargain," said Gargaro in a statement. "This exemplary leadership, along with that of other donors yet to participate in this critically important initiative, will provide the additional momentum and excitement necessary for the DIA to satisfy its $100 million grand bargain pledge."