GM: Give Us Tax Credits Or We'll Lose The RenCen
The Freep is reporting that GM’s Renaissance Center headquarters could be at risk if so-called “retention tax credits” aren’t amended. GM is consolidating more of its workforce at its Warren Technology Center, and 1,500 of the RenCen’s 4,000 GM workers are reportedly making the move out of downtown. The remaining 2,500 workers would stay only if a Michigan Economic Growth Authority “retention” tax credit makes it worthwhile. The necessary amendments to this tax credit have been made, but MEGA still has to approve the package. A memo to the Growth Authority reveals the stakes:
2,500 is the maximum that they can also take for this portion of the credit. General Motors has submitted an application stating that the headquarters is at risk without this credit.
GM’s CEO Fritz Henderson adds:
We’ll have some people move from the Renaissance Center to the Warren Tech Center, but the Renaissance Center will still maintain a very sizable presence and this will be our headquarters
As long as the state of Michigan makes it worth GM’s while, anyway. But Michigan is hardly united in its desire to prevent the building named for unflagging optimism in Detroit’s future from becoming an ironically-named, abandoned husk. Warren Mayor Jim Fout tells MLive:
Let them keep Fritz Henderson and his secretary and his board down at the Renaissance Center and they can call that their world headquarters. But ultimately, everything else is coming to Warren. It makes no sense for them to stay at the Ren Cen. If they are going to survive, they are going to have to consolidate.
Car czarlet Steve Rattner recently laid into GM’s culture of executive arrogance, pointing out that top executives had a private elevator that whisked them from their private garages to the top of the RenCen, insulating them from their firm’s realities. Imagine what might happen if top executives were further insulated by being the only GM employees to occupy the RenCen. The mind boggles.
More by Edward Niedermeyer
Latest Car Reviews
Read moreLatest Product Reviews
Read moreRecent Comments
- MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
- 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
- 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
- CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
- ToolGuy Ford is good at drifting all right... 😉
Comments
Join the conversation
porschespeed, you left me laughing. Shiny glass strap-on, indeed. Wal-Mart puts its executives in a building that looks like a SuperCenter except it's not as glamorous. And that's not the only difference between GM and Wal-Mart. The hicks in Arkansas make a profit.