GM might leave detroit after bankrupcy; Excelllent News!!

Discussion in 'Economics' started by bond_trad3r, May 12, 2009.

  1. Companies:General Motors Corp
    By: Reuters | 11 May 2009 | 01:55 PM ET
    Text Size

    General Motors 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 Monday.
    Fritz Henderson
    Fritz Henderson

    CEO Fritz Henderson, on a conference call with reporters, said it was more probable that GM [GM 1.44 -0.17 (-10.56%) ] 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 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.


    UAW is about to get

  2. Detroit => The new, New Orleans
  3. TGregg


    From the Detroit Free Press:

    And some `tards on this board think Detroit city is a great place to drop 200 large on a house. LOL.

    From the same paper, the new Big Industry that's gonna rake in the cash for Michigan - farming (I kid you not):
  4. Ehh, I've been driving vehicles made by the big three all my life. I suppose if you thought is was cool to trash American products and vote with your consumer dollar and buy foreign while being employed by one of the big three you won't have the big three to kick around anymore.

    It'd be funny as hell if GM ended up in Dubai, or HQ in China.
  5. Yeah. Problem is GM is obligated to stay in the US to provide military manufacturing capacity if the need ever arises.

    GM won't be leaving detroit any time soon.
  6. That's silly. Assuming the US wants quality military production, it can always have a competent company manage the production at the plants.
  7. Playing hardball with UAW. That's the only way to get them to bend over backwards. :D

  8. And whose plants are you talking about?

    You may think it's silly, but it's been a fact for over 70 years.
  9. Whoever owns them after GM is liqudated. Maybe Toyota!
  10. lol.
    #10     May 12, 2009