Earlier this month, General Motors CEO Fritz Henderson said in reference to the possibility that the automaker may move its headquarters from Detroit: "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. 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."
Apparently, Jim Fouts, mayor of the city of Warren, Michigan, was paying attention. In an effort to lure General Motors from its current Renaissance Center headquarters in the heart of Detroit. The Detroit News reports that Fouts has hand-delivered a letter to the automaker's top brass outlining what he describes as "an offer they will find hard to refuse." Fouts goes on, "I've done everything I can humanly and legally do to induce General Motors to make this wise, economical move." That offer reportedly includes the largest set of tax breaks ever offered in the state of Michigan.
Not surprisingly, Detroit Mayor Dave Bing, Governor Jennifer Granholm and Wayne County Executive Robert Ficano are less than enthused about the idea of GM moving to Warren. Ficano says, "We got together and asked what tools we have in our toolbox to tell the rest of the world that we're really open for business." Apparently, that toolbox holds its own set of tax incentives and abatements designed to keep GM in the RenCen.
All things being equal, it seems unlikely that General Motors would vacate its current headquarters to move to Warren, especially with an expected bankruptcy filing waiting in the wings. Either way, the ball is now firmly in GM's court.
[Source: The Detroit News | Photo: Bill Pugliano/Getty]