GM Considering Moving Headquarters Away From Detroit

GM is continuing its not too slow death march.  Now they are actually thinking of moving their headquarters out of Detroit.  This is something that was unthinkable even a couple of years ago.  From Reuters:
General Motors Corp is open to considering moving its headquarters from Detroit, selling U.S. plants and renegotiating its restructuring plan with its major union as it heads toward probable bankruptcy, the automaker's chief executive said on Monday.

CEO Fritz Henderson said it was more likely 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 on a conference call with reporters. "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 LLC and the sharp downturn in auto manufacturing.

GM purchased its glass-towered headquarters building, known as Detroit's Renaissance Center, last year for $625 million. 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 down," 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.

I've said it all along.  The people that ran American auto making into the ground were incompotent fools.  However, the last bastion of American manufacturing is too important to let fail.  If you got rid of GM tomorrow unemployment would sky-rocket, making the last 6 months look good in comparison.  Assemblyline workers to independent suppliers would be out in the cold.  If GM is allowed to die what will replace it for a jobs maker?  I see absolutely nothing on the horizon that has the potential to employ the number of people GM currently does.  Even in its greatly weakened state.  

Posted by Matt at 5/11/2009 2:37 PM
Categories: Auto Bailout
Tags: Auto Bailout GM Moving Unemployment Move Union Detroit Headquarters
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