GM CEO: Bankruptcy Likely; Firm May Leave Detroit

Reuters and CNBC ^ | 11 May 2009 | Staff

[Big_Monkey]

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.

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.

[Big_Monkey]

In the long term, GM leaving Detroit might be the best thing for both GM and Detroit.

[Vince Ferrer]

Where could they go to save money though, if not out of the country entirely.

[dfwgator]

Texas would be a possibility, they have a large truck plant here in Arlington.

[Nervous Tick]

>> Texas would be a possibility, they have a large truck plant here in Arlington.

That’s fine. We have right-to-work laws, though, and we’re not about to change them to accomodate the lazy, greedy UAW.

[Navy Patriot]

GM should go to China.

One properly placed bribe there, and the UAW employees would be working at the government mandated 35 cents an hour, plus all the dung they could carry home to cook their meals.

[Pessimist]

“There’s still a chance for it to be done outside a court proceeding”

= “You can still bribe us!”

[dfwgator]

"Mmmmmmm...dung!"

[dr_who]

Agreed. The question is will the unions find a way to follow GM around?

[dragnet2]

Texas would be a possibility, they have a large truck plant here in Arlington.

Wouldn't Mexico be less expensive? Then they could ship their cars straight up that 1000 foot wide super slab they wanna build between Mexico and Texas.

[WildWeasel]

Dallas, Texas would be a good choice. No state income tax, cost of living lower, quality of life better.

[skinkinthegrass]

That’s fine. We have right-to-work laws, though, and we’re not about to change them to accomodate the lazy, greedy UAW.

*SNICKER*
Just make sure, they leave all the liberal @$$Os in (the liberal haven of) Detroit, MI.

"When buying and selling are controlled by legislation, the first things to be bought and sold are legislators." - P. J. O'Rourke
“The problem with socialism is that you eventually, run out of other people’s money.” - Margaret Thatcher
"There are two sets of rules. One set for the rulers and another for the rest of us." —Richard Yancey, former IRS tax collector

[Big_Monkey]

"Agreed. The question is will the unions find a way to follow GM around?

I don't know. But, I can think of three or four states that would probably save GM a whole tractor-trailer full of money, each year. KY, TX, AZ, AL and even perhaps FL would all be very strong candidates.

My guess is that the GM leader is only just firing a warning shot over the bow of Detroit and Michigan. But, I could be wrong.

[KarlInOhio]

Texas would be a possibility, they have a large truck plant here in Arlington.

More likely the new HQ will be 1602 Pennsylvania Ave, DC.

[dr_who]

I’m kind of hoping that you’re wrong.

[Parley Baer]

The smart move would be to Texas. They have to get rid of the union leaches.

[spodefly]

Go bankrupt, move all operations and manufacturing to right-to-work states, and pray “card check” fails ...

[cookcounty]

Granholm’s fault.

[ZOOKER]

[Soon-to-be-ex-] CEO Fritz Henderson

Obama and the UAW will see to that.

[Big_Monkey]

Me too. I grew up in NW Ohio - just down the road D-Troit. Toledo has been hanging on for dear life to it's very large Jeep assembly plant - for decades. I have always thought that if it closed, it would force the city and it's resident labor force to take a long, hard look at it's employment/labor laws and the chilling effect they have on the business climate.

Toledo, and the surrounding area has never fully recovered from the deep recession of the late '70s - at least not when compared to the relative recovery that went on in the rest of the country.

It's kind of like an addict. You'll never get better unless you recognize you've got a problem. Toledo and Detroit are addicted to a dying business model. It's just a matter of time until the whole thing flatlines.

[Sir Francis Dashwood]

GM purchased its glass-towered headquarter building known as Detroit's Renaissance Center last year for $625 million.

Jimmy Hoffa's body is buried in the foundation...