• Nov 17th 2009 at 5:59PM
  • 26
According to The Detroit News, General Motors has gone on record as suggesting that without state tax credits designed to keep 2,500 employees ensconced at its Detroit Renaissance Center headquarters, the automaker could pull out of Motown's skyline and into the suburbs and surrounding areas.

As the story goes, transcripts from the Michigan Economic Development Corp. say that the Michigan Economic Growth Authority needs to amend a slate of already-approved tax credits to include the Renaissance Center. The requested amendment reportedly includes a provision that GM would need to keep at least 2,500 employees working at the RenCen with a total payroll of $60 million in order to qualify for the incentives.

If GM does not receive the tax breaks, it could disburse the approximately 1,500 additional workers at its headquarters to other offices in the metro Detroit area.

[Source: The Detroit News | Image: Bill Pugliano/Getty]


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    • 1 Second Ago
  • 26 Comments
      • 5 Years Ago
      Detroit has everything to lose in this situation, it is for purely sentimental reasons that GM is still headquartered there. Thankfully this time Michigan, not the whole country, is paying for GM's follies.

      I just wonder how much money is going to be poured into GM when this is all said and done and whether they will learn a lesson at all. At this point all we have done is institutionalize inefficiency.
      • 5 Years Ago
      TO ALL CAR BUYERS:

      Please remember these Gov't Motors strong arm tactics and BS the next time you buy a car... avoid (boycott) GM!!!!

      Buy a vehicle worthy of your hard-earned money, a Ford... Fusion, MT's Car of the Year!
        • 5 Years Ago
        Who do you think actually pays corporate taxes? The people that buy the products.

        Ok, or they stay without tax breaks AND they raise the cost of their cars. Is that better?
        • 5 Years Ago
        Looked at the Fusion, ended up buying a Cadillac CTS Wagon. If you could only fold the rear seats down in the Fusion hybrid...

        Thanks for the informed advice though.
      • 5 Years Ago
      And where was the outrage when Hyundai recieved nearly a Billion dollars in tax credits and incentives for their combined assembly plants in the states?
      Or how about the half million TIF and tax credits for the BMW assembly plant in the Carolina's?
      Or the nearly estimated 3.5 Billion for all the Toyota ventures here?
      All this "bribe" money is money we loose.
      Every transplant combined has recieved almost as much as GM got in so called bailout money and as an extra bonus, their home countries helped many of them with their own bailout plans.
      Some of you here are either the most blatant two faced hypocrites or simply the dumbest to ever look upon a computer screen.
      • 5 Years Ago
      Detroit is already a ghost town. The Democrats and unions have ruined Michigan--especially Detroit.

      Too bad Obama will turn the entire U.S.A. into a huge Detroit if he has his way.

      • 5 Years Ago
      It would be very good to see GM move its HQ to California. The mindset of the company is in a dying city in a flyover state. They need to get to the coasts and get back in touch with the real "heartbeat of America."
        • 5 Years Ago
        With all due respect, California is not the heartbeat of America
        • 5 Years Ago
        Now THAT'S rich. I'd love to sit in on the board meeting when the CEO says something like "You know what? We aren't paying high enough taxes or offsetting our CO2 emissions enough. I've got an idea! Let's move our cash strapped business that relies on heavy manufacturing to the state with the most oppressive taxes and nonsensical environmental regulations."

        But seriously, California is arguably the worst state in America to run a business. The state seems bent on running off businesses of any kind with its astronomical taxes and increasingly stringent environmental regulations.

        On the other hand, I think California does have a lot to learn from GM. They're both huge, slow-moving, bureaucratic machines bleeding money due to decades of short-sighted decision making. I'm sure GM can teach them a thing or two about finagling blank checks with no strings attached.
        • 5 Years Ago
        With all due respect, California is not the heartbeat of America
      • 5 Years Ago
      Our industrial might gave the ability to build a miltary to fight and win the second world war.
      All of us who lived a good life so far, should be greatfull we have assets at our disposal if need be.
      Our Auto industry may have played a big part at preserving our freedom 65 years ago.

      May god bless our Auto industry.

      If Japan can have, Mazda, Nissan, Toyota, Honda, Isuzu, Mitsubishi, Suzuki, and Subaru.( Did I leave any out?)

      The United States should be able to have Ford, GM and Chysler.

      Tax money well spent. My tax dollars invested in my standard of living, instead of somebody living in another country on the other side of the globe.

      • 5 Years Ago
      Yup, GM is always going to live up to its end of the bargain; Like it agreed to not let it's workforce in Ontario Canada drop below 16,000 to get millions in aid from the Ontario government (Ontario taxpayer). Guess what guys, it only took GM one year to break that agreement, not only did it break it but didn't pay back the money to the Ontario government (Ontario taxpayer). Just like the song says " I wish I had a rocket launcher" and I bet I could hit GM Renaissance Center from across the river in Windsor.
      • 5 Years Ago
      Detroit and Michigan is the logical end-point of liberal, Democrat Union rule.
        • 5 Years Ago
        Just one or more problems with your loose association there, you ignorant prick. They didn't even suggest leaving the state. And it isn't any of the New York Times' business what we do with our Michigan cities so piss off, you dolt.
        • 5 Years Ago
        Brian, you're absolutely correct. The imbecile #^@*head who said it isn't so has picked up on the pattern of all the new auto plants being built in Right To Work states. Even the extreme left wing New York Times just ran a story about how Detroit ought to be plowed under and turned into farmland.
      • 5 Years Ago
      I wonder- if GM were to move out of the Renaissance Center, and into some office park or whatever, that would probably be a decent PR move... but it'd probably be terrible for Detroit. So in cases like this, asking for a tax credit specifically from Detroit or maybe Michigan makes sense...
        • 5 Years Ago
        @Epsilon-Not you make a good point... I thought you might have been one of those people who keep calling for GM to move out of Detroit to get away from the unions... failing to realize that GM would be moving 5 miles outside Detroit and that the physical location of the HQ has no bearing on their relationship with the UAW. Looks like I didn't give you enough credit!

        Anyway, the tax credits have been approved, so it seems GM is staying put.
        http://freep.com/article/20091117/BUSINESS01/91117037/1320/GM-request-over-tax-credit-OKd
        • 5 Years Ago
        @alex: From a national political standpoint, it makes it look like GM is having a greater effort of "living within their means" and such- abandoning a flashy prominent headquarters and "conserving taxpayer dollars" or whatever.

        Or that was my thought... I guess you could be right as well.
        • 5 Years Ago
        how the hell would it be a good PR move to see their logo come off the most recognizable building in the city?
        • 5 Years Ago
        Good point! So the Detroit city council should ask themselves; What are the chances of it happening?
      • 5 Years Ago
      I am so tired of hearing this taxpayer money crap from all of the mouths of people in this country.
      The way you people whine you act like they literally come and take money out of your pockets or bank accounts.
      They have been taking money in this country through taxation for whatever since the beginning of its inception and will continue on long after.
      They take your money for everything from space shuttles, to government vehicles, to $40,000 Tahoes for one sheriff to drive around in, to $80,000 a piece missiles.
      You know what, none of us are affected.
      We live in the same houses, drives the same cars etc etc.
      So please shut the hell up with the my taxpayer money crap.
      It is getting old and annoying.
        • 5 Years Ago
        The government literally does take money out of taxpayers' wallets and bank accounts via witholding. OK, the employer is the agent. But the government does literally take money from taxpayers by force, at the point of a gun, backed by the threat of felony prison time. Right there, under the surface of any leftwingnut, is an angry little despot.
        • 5 Years Ago
        So we shouldn't care how much tax we pay, or what it is used for, since we've "always" been paying taxes, correct?

        Also, the income tax wasn't always around. You may want to do your research before commenting.
      • 5 Years Ago
      I thought they were already planning on moving out.

      All the long-distance haters need to step off. The Ren Cen is a white elephant, it's poorly laid out and not near anything worth being near. If you were thinking of locating there, you'd be looking to reduce your rent as much as possible too, if you even decided to stick with it at all.

      And also, it's "disperse", not "disburse".
      • 5 Years Ago
      I think there may still be some room for GM to share space at the CTC in Auburn Hills. I don't think Sergio would mind very much as he is only using a small room tucked far away in a corner, and besides, he is not in town very much either.

      I think we can get this marriage to work, if we could only get the two (okay, three) parties talking again.
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