Autoblog

REPORT: Michigan gives GM tax break but automaker to still halve staff at RenCen

Jonathon Ramsey — Fri, 18 Dec 2009 08:30:00 EST

Filed under: Hirings/Firings/Layoffs, GM, Earnings/Financials

There are roughly 4,000 GM employees working at the company's Renaissance Center headquarters in Detroit. During the restructuring, GM has been working out how many employees to let go and where to put the remainder, and that, for the state of Michigan, meant another few thousand workers unemployed.

To lessen the damage, the Michigan Economic Growth Authority (MEGA) has been in talks with GM to limit the number of retrenched employees. The General had committed to maintaining a workforce of 2,500 at the RenCen in exchange for a $50 million tax break over twenty years, but the number was recently reduced to 2,000. GM simply needs to do all it can to get itself back in contention.

The company will still receive the tax break and talks are continuing, yet while there aren't many details it's an intriguing deal to strike. This could be cynical of us, but GM has white-collar workers in numerous locations in Michigan, and we wonder if the company wouldn't simply shuffle people around to keep the required number at the RenCen but get rid of all the employees it feels it needs to. And when the company gets its new CEO, well, as we've seen before, he or she might plot a very different course than the one being charted now.

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

REPORT: Michigan gives GM tax break but automaker to still halve staff at RenCen originally appeared on Autoblog on Fri, 18 Dec 2009 08:30:00 EST. Please see our terms for use of feeds.

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GM's RenCen headquarters in Detroit 'at risk' without tax credits?

Chris Paukert — Tue, 17 Nov 2009 17:59:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

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]

GM's RenCen headquarters in Detroit 'at risk' without tax credits? originally appeared on Autoblog on Tue, 17 Nov 2009 17:59:00 EST. Please see our terms for use of feeds.

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Michael Moore screens new film Capitalism: A Love Story at GM RenCen [w/VIDEO]

Jonny Lieberman — Wed, 23 Sep 2009 15:00:00 EST

Filed under: Etc., GM, Celebrities

As Michael Moore Tweeted, "Here's a video of my first official visit inside General Motors headquarters." For you youngsters out there, before Michael Moore made Bowling for Columbine, Fahrenheit 911, and Sicko, twenty years ago, he made a little film called Roger & Me. That film, Moore's first, chronicled the extreme hardships in Moore's native Flint, Michigan after CEO Roger Smith decided to move most of General Motors' jobs out of town and down to Mexico, laying off some 30,000 American workers during a time of massive profitability.

As you may then imagine, Michael Moore is not exactly beloved by GM. Which is why it's all the more ironic that Moore decided to premiere his new film, "Capitalism: A Love Story" on four screens inside the GM-owned Renaissance Center in Downtown Detroit this past weekend. GM didn't like that. In fact, after realizing what they had scheduled, officials apparently tried to have the shows canceled. A compromise was eventually worked out where the film could be screened, but Moore himself could not be on the premises. Neither could his cameras or any media.

Moore is forced to conduct his post-screening interviews at the nearby Marriott (not the Marriott in the RenCen, but the one across the street). However, he does eventually walk into GM headquarters and addresses the people that watched his film. And unlike twenty years ago, Moore is not escorted out. How times change, and don't really change at all. Buncha videos after the jump.

[Source: Mediaite]

Continue reading Michael Moore screens new film Capitalism: A Love Story at GM RenCen [w/VIDEO]

Michael Moore screens new film Capitalism: A Love Story at GM RenCen [w/VIDEO] originally appeared on Autoblog on Wed, 23 Sep 2009 15:00:00 EST. Please see our terms for use of feeds.

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Warren, MI mayor offers GM deal to move headquarters, Detroit officials counter

Jeremy Korzeniewski — Fri, 29 May 2009 16:27:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

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]

Warren, MI mayor offers GM deal to move headquarters, Detroit officials counter originally appeared on Autoblog on Fri, 29 May 2009 16:27:00 EST. Please see our terms for use of feeds.

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Will GM consider moving its headquarters out of Detroit? [w/POLL]

Chris Paukert — Tue, 12 May 2009 13:20:00 EST

Filed under: GM, Earnings/Financials

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.

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

Will GM consider moving its headquarters out of Detroit? [w/POLL] originally appeared on Autoblog on Tue, 12 May 2009 13:20:00 EST. Please see our terms for use of feeds.

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Buy high, sell low: GM may unload RenCen for the cash

Chris Shunk — Tue, 07 Oct 2008 13:59:00 EST

Filed under: GM

One thing's for sure, General Motors is not very good at playing the real estate market. Last May the world's biggest automaker finally bought its world headquarters in downtown Detroit called the Renaissance Center for the sum of $626 million. It had initially bought into the complex of seven buildings back in 1996 for $75 million, but had continued leasing office space there until the purchase earlier this year. Here we are not five months later after the purchase and GM is reportedly considering selling the RenCen to raise $500 million fast.

Rather than selling the RenCen at a loss, the preferred plan reportedly would be to mortgage the property to one or both of Detroit's pension funds to the tune of $500 million, but seeing as they're both already heavily invested in downtown Detroit property, that's not likely to happen.

GM's ultimate goal is to quickly raise $5 billion by selling any non-essential assets, including things like the RenCen, HUMMER and its medium-duty truck business. If the RenCen were sold, GM would forego working out of a cardboard box by going back to leasing the office space it's currently using.

[Source: The Detroit News, Photo by Bruce Bennett/Getty]

Buy high, sell low: GM may unload RenCen for the cash originally appeared on Autoblog on Tue, 07 Oct 2008 13:59:00 EST. Please see our terms for use of feeds.

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GM quits renting, buys headquarters for $626 million

Chris Tutor — Fri, 09 May 2008 17:03:00 EST

Filed under: GM

One upside to a faltering real estate market is a plethora of good buys on property. General Motors took advantage of that fact by purchasing its Renaissance Center headquarters in Detroit for $626 million in cash. For another $200 million it picked up a couple of office buildings in Pontiac, too.

GM spokeswoman Renee Rashid-Menem told The Associated Press that the company's lease was up for renewal on May 1, but they saw a good opportunity to get a deal on the place. She went on to say that as the real estate market improves, the company could sell the property and return to a lease arrangement.

Here's an interesting piece of trivia many outside the Detroit area may not know. Henry Ford II and Ford's real estate division built the Renaissance Center in 1977. General Motors claimed it as its HQ in 1996 and in 2005 completed a $500 million improvement project.

[Source: AP via Yahoo Finance]

GM quits renting, buys headquarters for $626 million originally appeared on Autoblog on Fri, 09 May 2008 17:03:00 EST. Please see our terms for use of feeds.

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