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GM HQ may leave Detroit

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Talk about another blow to the Motor City. It's unclear if they mean out to the suburbs or out of the actual metro area altogether, but I can't imagine there will be too much goodwill toward GM if this goes through.

http://uk.reuters.com/article/marketsNewsU...152766120090511

DETROIT (Reuters) - General Motors (GM.N: Quote, Profile, Research) is open to considering moving its headquarters from Detroit, selling off U.S. plants and even renegotiating parts of its restructuring plan with its major union, the new chief executive said on Monday.

CEO Fritz Henderson, on a conference call with reporters, said it was more probable that GM was headed for bankruptcy by June 1 - the U.S. government-imposed deadline for the automaker to restructure or face bankruptcy.

"It's more probable that we would need to accomplish our goals in a bankruptcy," Henderson said. "There's still a chance for it to be done outside a court proceeding."

A move by GM to leave Detroit would represent another blow for the economy of a region already reeling from the bankruptcy of Chrysler and the sharp downturn in auto manufacturing.

GM purchased its glass-towered headquarter building known as Detroit's Renaissance Centre last year for $625 million (412.8 million pounds). The 100-year-old automaker has been based there since 1996.

"As we look at the structure, look at the business, we're looking at everything, particularly as we slim," Henderson said. "At this point, I don't have anything to report. We don't have any such plans, but if we did it would be motivated by business rationale, which would be cost-efficiency and speed.

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Would the last person out of Detroit please shut out what lights haven't already been broken?

Bad news for the midwest...seems like we talked about this here on C and G a year or two ago...

Chris

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Detroit is becoming a pretty terrible place. Sprawling suburbs with an empty, dangerous, decaying urban core.

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Asked recently about a dip in the city's murder rate, a mayoral candidate deadpanned, "I don't mean to be sarcastic, but there just isn't anyone left to kill."

The whole article

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Maybe the city itself will eventually be fenced off, become something like from 'Escape from New York'.

J/K, but I'm amazed that the city population is still over 900k.

Edited by Cubical
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Im glad I don't live there, everything I hear about it anymore is terrible.

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Im glad I don't live there, everything I hear about it anymore is terrible.

Yeah, I haven't been in Detroit proper since March '97, and the last time I was in the state (Ann Arbor) was Sept. 99. I need to go back to A2 and see some old friends and see how my old grad school haunts look today.

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I was last in D-Town in November 2001, and it was awful, it can only be worse now.

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Would the last person out of Detroit please shut out what lights haven't already been broken?

Bad news for the midwest...seems like we talked about this here on C and G a year or two ago...

Chris

They are working on it, that is for sure....

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Detroit is becoming a pretty terrible place. Sprawling suburbs with an empty, dangerous, decaying urban core.

It's not that bad....it kinda depends in what part of the burbs though...even through all this $h!, many cities are still holding on...

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Unfortunately, there is a difference between the suburbs and the central city.

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Unfortunately, there is a difference between the suburbs and the central city.

Again, it just depends on where...

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Maybe the city itself will eventually be fenced off, become something like from 'Escape from New York'.

J/K, but I'm amazed that the city population is still over 900k.

For those of you that don't know Detroit area, it's just on the very boundry of down town that is bad/rough. The majority of the rest of the area is actually pretty nice, and built up nice. The very core (a very small fraction) of the area is what makes the whole region look bad. The town is worth saving.

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Saw on the CNN ticker GM has no plans of moving out of Detroit...

Dont' really see a reason for them to, property and taxes are cheap compared to elsewhere, and with the hurt, none of that will rise anytime soon.

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From a ecomomic stand point and practical point GM could add on tho the tech center and center all their efforts from one place.

Goodyear here in Akron is working to sell off their old headquarters and build a new smaller one ajoining their tech center. THis would save a lot of $$$$$$$$$$ and keep every one in one place to work out of as a joint team.

I expect to see GM move to Warren MI and centralize their operations. Look for the Ren center to be sold.

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From a ecomomic stand point and practical point GM could add on tho the tech center and center all their efforts from one place.

Goodyear here in Akron is working to sell off their old headquarters and build a new smaller one ajoining their tech center. THis would save a lot of $$$$$$$$$$ and keep every one in one place to work out of as a joint team.

I expect to see GM move to Warren MI and centralize their operations. Look for the Ren center to be sold.

I agree, there's no reason for them being in the Ren center. I wonder how close to the $660 mil they can get back out of it this day in age?

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I agree, there's no reason for them being in the Ren center. I wonder how close to the $660 mil they can get back out of it this day in age?

Not much.

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I agree, there's no reason for them being in the Ren center. I wonder how close to the $660 mil they can get back out of it this day in age?

Pennies on the dollar in this market, esp. in Detroit.

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Pennies on the dollar in this market, esp. in Detroit.

My guess is they would be better to lease it out at this point until the market turns back around. I bet they are kicking themselves for deciding to buy the Ren center 2 years ago!

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when you are talking about losses in the multi-billions, a 660m$ hit to buy the center really wasnt much.

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Maybe the city itself will eventually be fenced off, become something like from 'Escape from New York'.

J/K, but I'm amazed that the city population is still over 900k.

What's amazing is that a city like San Jose, CA., has now out-grown Detroit (and is the largest city in the Bay Area, surpassing San Francisco's ~ 750K.)

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What's amazing is that a city like San Jose, CA., has now out-grown Detroit (and is the largest city in the Bay Area, surpassing San Francisco's ~ 750K.)

Not surprising...while the Detroit area has been decaying and dying as have 'old time' manufacturing industries, the San Jose area (Silicon Valley) has been growing and thriving with the rise of Internet technologies and knowledge worker industries...one place represents the past, the other the present..

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For those of you that don't know Detroit area, it's just on the very boundry of down town that is bad/rough. The majority of the rest of the area is actually pretty nice, and built up nice. The very core (a very small fraction) of the area is what makes the whole region look bad. The town is worth saving.

See to me, (and I used to live there) even the suburbs of Detroit have a decaying, worn-out feel.....even the nicest ones.

Rural Michigan is a different matter. Towns can be quaint and pretty, and the countryside can be pretty.

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See to me, (and I used to live there) even the suburbs of Detroit have a decaying, worn-out feel.....even the nicest ones.

Rural Michigan is a different matter. Towns can be quaint and pretty, and the countryside can be pretty.

I haven't been back to SE Michigan in almost 10 years..I remember Ann Arbor being a nice college town from when I lived there...don't recall much of the Detroit area and it's suburbs, just seems like a lot was gray and decaying, at least in the mid '90s..vaguely remember some places in Ypsilanti, Warren, Livonia...went up to Flint a couple times. Malls in Farmington Hills, Auburn Hills. I have a couple hazy memories of pleasant summer drives around the thumb.

Speaking of the Rust Belt, I'm always amazed at how green and pretty rural Eastern Ohio is when I'm back there...I should be driving my Mustangs on some rolling hills and winding roads in Amish country in a couple days..

Edited by Cubical
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