GM HQ may leave Detroit

[mustang84]

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.

[A Horse With No Name]

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

[CSpec]

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

[Satty]

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

[Robert Hall]

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 May 11, 2009 by Cubical

[Daryl Z71]

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

[Robert Hall]

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.

[Satty]

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

[daves87rs]

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....

[daves87rs]

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...

[Justin Bimmer]

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

[biff]

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

[daves87rs]

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

Again, it just depends on where...

[BuddyP]

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.

[BuddyP]

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.

[hyperv6]

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.

[BuddyP]

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?

[daves87rs]

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.

[Robert Hall]

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.

[BuddyP]

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!

[Innotech]

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

[The O.C.]

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.)

[Robert Hall]

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..

[The O.C.]

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.

[Robert Hall]

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 May 21, 2009 by Cubical

[ZL-1]

Can I suggest sunny Lisbon?

[The O.C.]

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..

San Jose had its tough times for a few-year period a few years back with the dot.com bust. I remember driving around San Jose and seeing office park-after-office park with beautiful, new, gleaming office towers....with empty parking lots....during the weekday.

But I think it has (relatively-speaking in today's tough economy) rebounded a bit. Probably expanded some back-office operations, etc.

I really worry about what SE MI will do to recover. Cities like Pittsburgh, that used to be so reliant on the steel industry, have done a postcard job of it....but I worry that areas like Flint and Detroit simply do not have the infrastructure in so many ways to rebound, build new industries, or most importantly, attract young, educated workers.

[Robert Hall]

San Jose had its tough times for a few-year period a few years back with the dot.com bust. I remember driving around San Jose and seeing office park-after-office park with beautiful, new, gleaming office towers....with empty parking lots....during the weekday.

Yeah, they've definitely had a down turn, but nothing on the scale of Michigan. Lots of companies folded, lots of layoffs, but new companies are continually starting up and hiring continues..

I really worry about what SE MI will do to recover. Cities like Pittsburgh, that used to be so reliant on the steel industry, have done a postcard job of it....but I worry that areas like Flint and Detroit simply do not have the infrastructure in so many ways to rebound, build new industries, or most importantly, attract young, educated workers.

Yes, I've read a couple good articles about the brain drain issue. Nothing to keep graduates in the state, or to draw people in.

When I left grad school, I left Michigan..didn't see any future there...was looking to move to San Jose or San Francisco, but ended up in Colorado instead..

I'm impressed with Pittsburgh, what I've seen in recent years seems very different than what I remember from the late '70s as a kid in the area...

I've toyed w/ the idea of moving there, what with it being only 75 miles from my Mom...my Mom is nearing 80 and stubbornly won't leave rural Ohio, my sister and I concerned about her..thinking maybe we should be closer than 2000 miles away.

[84Cressida]

GM is the only major corporation HQ'd in Detroit. If they leave, it will be a huge blow for the city.

[vonVeezelsnider]

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

Can you think of another thing GM had "No Plans" of doing that they did anyway?

[mustang84]

GM is the only major corporation HQ'd in Detroit. If they leave, it will be a huge blow for the city.

There are at least a couple other Fortune 500 companies headquartered within the city proper along with quite a few other large companies that have a major presence within the city and Metro. Don't forget that Ford is only a short drive away in Dearborn and also has a presence in downtown Detroit. But GM is by far the largest, so it won't help things if they pull out.

[Oracle of Delphi]

The most logical place for GM's headquarters should be in Delaware where it's incorporated ... Low taxes, low cost of living, with a skilled workforce. The Delaware Court of Chancery is one of the best in the country in deciding/interpreting corporate law ...