Will GM consider moving its headquarters out of Detroit? [w/POLL]
Yesterday's media question-and-answer session with General Motors' CEO Fritz Henderson didn't reveal much in the way of actual news, but at least one question raised a few eyebrows: "Is GM considering moving its corporate headquarters?"
While that's an unlikely scenario, Henderson stopped short of denying the possibility, saying: We're looking at, frankly, everything within our business, but it's not like we have that queued up at the top of our list." Henderson also admitted: "We don't have any such plan... but if we did it would be motivated by business rationale, which would be cost, efficiency and speed."
So, where might GM defect to? Detroit Free Press scribe Tom Walsh suggests that Wilmington, Delaware (the city where GM is incorporated) could be a possibility, or even just down the road to Warren, MI near GM's Tech Center complex is located.
Admittedly, a move by GM out of its Renaissance Center headquarters remains unlikely, but Detroit's already skittish residents and politicians are already bristling on the city's airwaves at Henderson's less-than-firm response to the question. What do you think? Answer our poll below.
[Source: The Detroit News | Image: Bill Pugliano/Getty]
Reader Comments (Page 1 of 3)
Luis 1:28PM (5/12/2009)
They should move to Shanghai.
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alex 1:43PM (5/12/2009)
If they move anywhere, they will move a whopping 4 miles outside of Detroit to Warren where their tech center is. The only compelling reason to move would be to reduce the number of facilities they have to operate. Moving to China, California, Delaware or any of the other places suggested would be a huge expense... and completely pointless.
Tool 2:03PM (5/12/2009)
Not sure Shanghai is the answer.
But it might make sense if GM is really trying to get a fresh start to move to another building just to mix it up as part of a much needed culture change. Then they can sell off the RenCen and pay off some of their creditors.
I would actually recommend Chicago or some other city to really get away from Detroit think, but that might be a bit too radical. Boeing moved their corporate HQ a few years back.
Smegley 4:03PM (5/12/2009)
As of a month ago it was in DC.
Jake B 5:30PM (5/12/2009)
That is what came to my mind when I read that.
Frank 8:22AM (5/13/2009)
They should move to be closer to Obama.
Epyx 1:28PM (5/12/2009)
Wilmington, Delaware
Half the corporations in the country are incorporated in Delaware. Very few are actually located there.
"Delaware General Corporation Law is the statute governing corporate law in the state of Delaware. Delaware is well known as a corporate haven. Over 50% of US publicly-traded corporations and 60% of the Fortune 500 companies are incorporated in the state" - Wikipedia
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Epyx 1:52PM (5/12/2009)
Alex - I agree 100% I was simply pointing out how stupid it sounds to suggest they move to Delaware b/c of incorporation.
I agree the only move would be out of Detroit and into the 'burbs.
Sam Watson 2:40PM (5/12/2009)
completely correct. anyone can incorporate their small business as a Delaware corporation. There are many excellent tax reasons to do so. Additionally, since so many companies have done so there is a large body of legislative rulings / precedent so that companies feel they are on surer footing understanding their rights and the regulations.
for more info check out: www.corporate.com. It is the most common company small business use to incorporate. Several folks I know have done so.
dezoris00 1:28PM (5/12/2009)
Where else could they move that would be cheaper for them?
They already have the infrastructure there and investment.
Moving would mean decimating that city back to the stone ages, political pressure would prevent this type of move.
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Sea Urchin 1:33PM (5/12/2009)
Aren't most foreighn car companies either based in California or have major operations there.
Or they can move to a state with more relaxed lar laws and build all future plants in there as well.
Egon 1:34PM (5/12/2009)
Have you been to Detroit recently? Heck, they're already in the Stone Age. If GM loaded up the Mayflower van, that would move the city back closer to the Big Bang.
Epyx 1:41PM (5/12/2009)
Sea Urine, - "Aren't most foreighn car companies either based in California or have major operations there."
The short answer - No
alex 1:55PM (5/12/2009)
i see what you did there, Epyx. clever!
Tagg 1:59PM (5/12/2009)
Toyota's U.S. sales and marketing headquarters is located in California but the North American headquarters is in NYC. Honda is based out of Torrence, CA and Nissan is based in Symnra Tennesee while most of the European automakers are based on the east coast.
So Honda is the only one headquarted in California but many have tech centers there. However Toyota has a huge tech center in Ann Arbor Michigan as does Nissan and Mitsubishi.
Yep, there is more in the Detroit area than GM, Ford and Chrysler.
Judy Zik 2:10PM (5/12/2009)
That's the problem. Having GM in the Ren Center was a charitable contribution to downtown Detroit. GM isn't in a position to be giving to charity anymore. Having your corporate HQ in a building surrounded by a city that looks like Gotham is not an encouraging sight to your investors and partners. They need to stay in Michigan because that is where their money and powerbase is but a suburban location would do fine.
Personally I always thought it was a mistake isolating your brains (if you can call GM's management that) in a glass tower so far away from the rest of your operations. In a perfect world the suits would be in a building in a complex attached to the proving grounds, one of the factories and maybe even a dealership so they wouldn't have to book a car to go see what it is like on the front lines. Like some of the best run companies I know of everyone would share a cafeteria so that suits and overalls could mix. I remember a large company I once worked for where you could end up by chance sharing a table with the CEO in the company cafeteria at lunch. He often picked up on problems over light conversation with peons at lunch that his managers had been missing or glossing over.
artso06 2:15PM (5/12/2009)
Sea Urchin...
Your not out of line...However that is were many of the DESIGN facilities are not headquarters. And frankly i would love to see GM's design facilities to move out there because Detroit is an terrible place for trends and modern research. Chrysler, BMW, Audi..etc...are all out in California however this does not mean that is were there headquarters are.
The problem with moving though is cost, and frankly there is no company large enough that is going to WANT to purchase what GM has because it is in Detroit, so there pretty much stuck.
Sea Urchin 8:03PM (5/12/2009)
The reason i bring up CA is because John McCroy or whatever his name is, dude from Autoline Detroit once dedicated two shows to the auto industry in CA, they are big in there.
Tim 1:31PM (5/12/2009)
Of course it will move to Washington DC. Think of all the money they will save in freight. 16 billion dollars must be heavy. Plus Tim Geithner is only a train ride away.
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Rob 1:32PM (5/12/2009)
If it's the smart thing to do, I wouldn't count on it. Either way Obama will let them know!
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