Warren mayor: Tech Center has everything automaker needs
By TIM HIGGINS • FREE PRESS BUSINESS WRITER • May 11, 2009
Is General Motors thinking about moving its corporate headquarters from Detroit?
GM CEO Fritz Henderson didn’t rule out the idea today in a conference call with reporters.
He stressed that there wasn’t a plan currently to do so but noted that the struggling automaker is looking at every idea to improve its business.
“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. As we look at the structure, look at the business, we’re looking at everything,” Henderson said. “At this point, I don’t really have anything to report. Our headquarters is here, we’ve got a fairly large complement of people here. And we’re proud to be here.”
Henderson added: “We don’t have ... such plans but if we did, it would be motivated by business rationale, which would be cost, efficiency and speed.”
The idea of moving GM’s headquarters out of Detroit seems to have emerged last week during a meeting between Warren Mayor Jim Fouts and Ed Montgomery, President Barack Obama's director of recovery for auto communities and workers.
Fouts today told the Free Press that he brought up the proposal Friday during his talks with Montgomery and Gov. Jennifer Granholm.
“General Motors is going to be looking to consolidate. They’re looking to collaborate, and obviously, they’re looking to save money. The GM Tech Center has everything you want — they have research, they have design, they have administrative offices,” Fouts said. “I pointed out to them that they just recently made an investment of $1.5 billion in new development at the Tech Center.”
“It would seem to me that they would want to consolidate and move most of their facilities ... to Warren to save money,” the mayor added.
He noted that Warren has provided $100 million in tax abatements to the Tech Center, which occupies about 1 square mile in the suburb, and the city does not have a city income tax.
“We have some things to offer General Motors. We have no city income tax unlike our sister city to the south,” Fouts said of Detroit. “We have clean and safe neighborhoods.”
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