Daily Auto News GM May Move Headquarters to Save Cash
Daily Auto News
It’s been one of the icons of Detroit’s skyline, and now it may become an icon of the city’s decline. Several sources are reporting that General Motors is considering moving its corporate headquarters from the Renaissance Center in downtown Detroit.
Though GM has occupied the Renaissance Center since 1996, Left Lane News reports, “GM CEO Fritz Henderson said yesterday during a conference call with reporters that the automaker is open to a move to save cash.” During the call, Henderson also reportedly reiterated GM’s commitment to saving cash and shedding brands, saying the company was close to finding buyers for Saab and Hummer, and that Pontiac will be closed rather than sold.
According to Left Lane News, GM “may consider a move to suburban Warren, Michigan, in an effort to escape the $6 million it pay annually in taxes on the Detroit building.” The loss of $6 million in tax revenue would further dampen the fortunes of Detroit, Reuters reports, “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.”
Still, the move isn’t set in stone. Reuters quotes Henderson as saying, “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.”
GM has been based in the Renaissance Center since 1996, and Reuters reports the company bought the building last year for $625 million. In addition to GM offices, the building also houses shops and the tallest hotel in the Western hemisphere.
Left Lane News reports that the suburb of Warren is aggressively courting GM. “Warren, about 20 minutes from downtown, is touted by its mayor for its lack of an income tax. …Warren Mayor James Fouts has announced that he will make a formal proposal to GM later this week.”
While a possible GM move could be worrisome for downtown Detroit, the Wall Street Journal reports those worries are likely unfounded: ” The automaker had been considering moving its headquarters out of downtown Detroit’s spacious Renaissance Center skyscraper among cost cutting options, Henderson said. He said the relocation is no longer a priority.”
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