GM says open to moving from Detroit headquarters [View All]

[OhioChick]

Source: Reuters

11 May 2009, 2208 hrs IST, REUTERS

DETROIT: 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.


Read more: http://economictimes.indiatimes.com/International-Business/GM-open-to-moving-from-Detroit-HQ/articleshow/4510913.cms

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Snip~ 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.