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Old 05-11-2009, 01:52 PM   #1
AVANTI R5
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Default Rumor Of The Day: GM To Leave Detroit?


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DETROIT (Reuters) - General Motors Corp is open to considering moving its headquarters from Detroit, selling off U.S. plants and even renegotiating parts of its restructuring plan with its major union, the new chief executive said on Monday.

CEO Fritz Henderson, on a conference call with reporters, said it was more probable that GM was headed for bankruptcy by June 1 - the U.S. government-imposed deadline for the automaker to restructure or face bankruptcy.

"It's more probable that we would need to accomplish our goals in a bankruptcy," Henderson said. "There's still a chance for it to be done outside a court proceeding."
A move by GM to leave Detroit would represent another blow for the economy of a region already reeling from the bankruptcy of Chrysler LLC and the sharp downturn in auto manufacturing.

GM purchased its glass-towered headquarter building known as Detroit's Renaissance Center last year for $625 million. The 100-year-old automaker has been based there since 1996.

"As we look at the structure, look at the business, we're looking at everything, particularly as we slim," Henderson said. "At this point, I don't have anything to report. We don't have any such plans, but if we did it would be motivated by business rationale, which would be cost-efficiency and speed.

GM has until June 1 to reach deals that would slash debt owed to bondholders and the United Auto Workers union and to win concessions from the union that would cut operating costs for its remaining U.S. plants under terms set by the Obama administration's autos task force.

It has already told bondholders that it would miss a June 1 debt payment of $1 billion.

The automaker has also restarted talks with the Canadian Auto Workers union, which just agreed to a set of sweeping concessions for Chrysler, Henderson said.

The UAW, which is crucial to GM's turnaround plans since it is also a major creditor, has raised strong objections to GM plans to increase vehicle imports from plants in Mexico and Korea, saying that runs against the job-saving intent of the U.S. government's support for the automaker.

GM's current restructuring plan, which is supported by the U.S. autos task force headed by former investment banker Steve Rattner, would cut about 21,000 more U.S. factory jobs.

But Henderson said GM was ready to negotiate everything with the UAW in talks now underway. "This is something that we would want to have a dialogue with them," he said.
GM shares were trading at $1.45, down 16 cents or 9.94 percent, in late morning trade on the New York Stock Exchange.
http://www.reuters.com/article/topNe...54A3KG20090511
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Old 05-11-2009, 02:01 PM   #2
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That sounds like they might move their HQ out of the US. What a kick in the balls to the American Taxpayer.
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Old 05-11-2009, 02:06 PM   #3
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That sounds like they might move their HQ out of the US. What a kick in the balls to the American Taxpayer.
I HIGHLY doubt that. Especially after Obama spoke out on outsourcing as tax/money havens. Besides The US would not let them leave the country after we own so much of it anyway.
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Old 05-11-2009, 02:07 PM   #4
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Silly rumor is silly.
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Old 05-11-2009, 02:13 PM   #5
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Default GM likely to stay put in Detroit




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NEW YORK (CNNMoney.com) -- General Motors intends to keep its headquarters in Detroit, even though its U.S. operations are in far worse shape than some of its growing overseas units, CEO Fritz Henderson said Monday.
At a press conference Monday Henderson was asked about speculation that the company might move its headquarters away from its long-time home as part of the reorganization process it is now completing.

While Henderson said all options are being examined as part of the company's turnaround efforts, he said "we don't have any such plans" to move out of Detroit currently.

He added that if GM (GM, Fortune 500) determined that there are efficiency and cost advantages to moving, it would consider a move. But with the company trying to stem years of market share and financial losses, Henderson said that exploring a move is not a priority at this time.

"It's not like we have that queued up on the top of our list," he said. "We're proud to be here.

nly 26% of GM's worldwide sales in the first quarter came from the United States, down from 36% in the same period a year ago. The company sold only about 20,000 fewer vehicles in China than it did in the U.S. in April, prompting some to speculate that moving GM's headquarters overseas would be a good idea for the company.In other comments Monday, Henderson repeated his earlier statements that he believes a bankruptcy filing is now "probable" as the company tries to reach agreements with creditors, the United Auto Workers union and its dealership base to cut costs.

The company has been given until the end of the month by the Treasury Department to reach those agreements or file for bankruptcy.

GM rival Chrysler LLC was forced into bankruptcy last month after failing to reach a deal with all its lenders. However, the company did reach agreements with the federal government, unions, some lenders and Italian automaker Fiat to keep the company from being shut down.

Henderson said if GM files for bankruptcy, it is possible that only its U.S. or North American operations would be in bankruptcy while its worldwide operations would not be forced to operate under bankruptcy protection. But nothing is certain just yet.

GM has received $15.4 billion in assistance so far from the U.S. Treasury and has said it'll need another $2.6 billion in help this month to keep paying its bills. GM will also need $9 billion to get it through the remainder of the year. The company announced last week that it lost $6 billion in the first quarter and burned through more than $10 billion in cash during that period.

Henderson said that there are ongoing talks taking place with the UAW, and that he is open to scaling back plans to import about 7.5% of the vehicles sold in the U.S. from non-North American plans by 2014. The union has been critical of those plans.

He also said dealers that GM is looking to cut ties with would start being notified of the company's plans later this week, but that the wind-down process of those locations being cut would take the rest of this year.

GM announced last month that it intended to cut its dealership base by 42%, to just 3,600, by the end of 2010.
http://money.cnn.com/2009/05/11/news...on=money_autos
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Old 05-11-2009, 02:44 PM   #6
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I HIGHLY doubt that. Especially after Obama spoke out on outsourcing as tax/money havens. Besides The US would not let them leave the country after we own so much of it anyway.
Oh I doubt it too, just saying if it happened. It's probably not a bad business move though. They are much more profitable overseas.
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Old 05-11-2009, 03:51 PM   #7
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This is a little far fetched. I don't think after all the money that was dumped into them over the last year, that they would just leave.

.......Beside....... She won't let you leave, she has so much to show you.
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Old 05-11-2009, 04:46 PM   #8
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Meh... who wants to live in Detroit now anyway..
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Old 05-11-2009, 05:26 PM   #9
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This is a little far fetched. I don't think after all the money that was dumped into them over the last year, that they would just leave.

.......Beside....... She won't let you leave, she has so much to show you.
ha ha, haven't seen that movie in a few years but that takes me back.
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Old 05-11-2009, 05:43 PM   #10
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THe unions are really just mind blowing. They are so stuck in a 1920's labor mindset. Importing vehicles will help GM stay afloat and keep the money coming in. But Heaven Forbid you cut just one darn job here. When do they realize that their union, that they love so much cannot exist without GM, Ford and Chrysler. They would be nothing. They are like a leprosy that slowly devours the bodies of the company until there is nothing left. And they want to keep being fed.

I think it was said best, that GM has been reduced to a healthcare and retirement provider that sells cars to make ends meet.
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Old 05-11-2009, 07:00 PM   #11
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Wait what? GM bought a $625,000,000.00 building last year?!? They were doing poorly then and they thought that was a good investment. Generally, headquarters like these are just for show and reputation and do nothing to help the core business.

Pretty lame, but I hope they survive. I needs me a CTS-v and a Vette.
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Old 05-11-2009, 09:42 PM   #12
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I can see why there's some debate, the problem with GM is definitely Detroit, not GM itself...
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