The Packard factory is dead and for $10 million no one wants to demolish it

The sad story of the abandoned Packard factory took an unexpected turn when its owner, Peruvian businessman Fernando Palazuelo, failed to meet the April 21, 2022 deadline set by a Detroit court to demolish the building.

City officials have confirmed to local news channel Click on Detroit that the deadline has passed and what happens next is unclear. Detroit authorities may have to do it themselves and bill Palazuelo for the work later.

The Packard factory, which had been vacant for decades, had the dubious honor of being one of the greatest industrial ruins in the world. Demolition is much more difficult and much more expensive than it seems: experts estimate the cost of a controlled liquidation of the building at 10 million dollars. The collection of this debt at Palazuelo could be a serious problem for the city government.

Somehow, the factory’s days are numbered. Most residents consider it an eyesore: they are afraid that their children will enter the building and get injured, and marginal elements settle there at night.

Palazuelo has been quiet, but he has previously criticized city officials for failing to support his ambitious development plans, which include residential, commercial, industrial and art spaces. He even planned to build a go-kart track on this site. The businessman claimed to have invested about $7 million in a home he bought for $405,000 at a Wayne County tax auction in 2013.

The only bright spot in the final years of this building’s life: In 2021, Detroit-based Wallace Guitars teamed up with Jeep to release a Detroit City of Cars-themed guitar. The instrument is carved from a 100-year-old pine tree, taken from the ruins of a factory.


Packard is an American luxury car brand manufactured by the Packard Motor Car Company in Detroit, Michigan, USA. Cars were produced from 1899 to 1958. Packards served as the inspiration for the creation of the GAZ-13 and ZIL-111 models.

A picture: City of Detroit

Source: Z R


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