GOOD News For General Motors, They Get To Keep Their HQ Thanks To The Gov't

The Detroit News reports:

"The state of Michigan quadrupled its offer to keep General Motors Co. from relocating about 2,000 employees from the Renaissance Center, and teamed with local officials to dangle tax breaks that could total $221 million.

The package helped convince GM on Friday to scrap plans to move about half of its work force out of the iconic riverfront complex as part of a broad facilities consolidation. GM also cited the high cost -- tens of millions of dollars -- and disruption of relocating workers to the Warren Tech Center as reasons to maintain a sizeable staffing level at the RenCen.

"We decided to spend that money on products and technology and relationships with customers," GM spokesman Tom Wilkinson said.

The sweetened offer ends a prolonged saga that threatened to sap tax revenue from Detroit, which is facing a roughly $300 million budget deficit, and leave GM with a half-empty world headquarters following thousands of job cuts during the company's financial crisis last year. It also ends a tug-of-war between the city and Warren, which was wooing GM to relocate as many workers as possible to the Macomb County community..."

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upwards - 2/7/2010 10:42:54 PM

-5 Boost

Good news for Toyota they get to start their business of killing people thanks to the Japanese government and hiding the evidence!

Joe_Limon - 2/8/2010 12:37:09 AM

+1 Boost

last I checked it didn't have to be enforced by the government, and it still doesn't have the same death toll.

WorldofLuxury - 2/8/2010 12:15:51 AM

+2 Boost

I thought their headquarter was just an investment. They own it; then they sell it; then they buy it back; then they sell it again...

izfuney - 2/8/2010 6:11:59 PM

-1 Boost

Lets not pretend that the Obama Govt isnt pro UAW and is absolutely reveling in its chance to hurt Toyota. Both Ford and GM are getting a free pass. Prius 1 second delay in braking under only battery speed is "a ford pinto moment" while Fords brake failure fix is a "TSB" . Hell the NHTSA didnt even register it ..

Toyota, shpuld have expected this and should have been on the balls of its toes. It did a terrible job explaining the mess and still dosent get the most basic tenet of Corporate crisis management .. Good Communication!!!
On that subject .. Akio Toyada has turned out to have a not to so hot start as CEO as despite doing his MBA in the US (some low key B school)
he can barely speak english , which is strange since this is Toyota's biggest market and figuring out what your largest pool of customers want is probably good business.

Which bring us back to the GM center. Frankly with the Billions used to bail out he UAW and GM and further billions spent on bailing out GMAC this is like a droplet.

Joe_Limon - 2/8/2010 10:39:13 PM

+2 Boost

So toyota is clear of killing people because they use the same parts on all of their cars? You're patheic huu, you never even responded to the fact that they had to be forced to do it.

uaw_lax - 2/9/2010 3:38:03 AM

+1 Boost

Huu if Obama is so much against Toyota why would he not just raise tariffs on imports or just limit Toyota sales like Japan inflicts on American companies?

http://news.yahoo.com/s/afp/20100203/pl_afp/usjapantradeauto_20100203182804

""The fact remains that the new Japanese policy does not provide meaningful market opening, especially in light of Japan earning the OECD title this year as the most closed auto market in the industrialized world," said the American Automotive Policy Council."

(A statemnt taken from the above link to the story)

wins555 - 2/8/2010 11:19:59 PM

0 Boost

Nobody to buy the building anyway. Might as well keep it.