GM Fire Sale Continues: RenCen for Sale

Robert Farago
by Robert Farago
gm fire sale continues rencen for sale

With a conflagration raging through GM’s cash hoard, with enough debt and ongoing obligations to bury Bolivia, with its credit rating in the proverbial toilet (CCC), with the North America market fire hosing the company’s books with red ink, GM’s access to operating finance is, shall we say, “limited.” To feed the flames, GM’s already sold just about everything that’s not nailed down: subdivisions, 51 percent of captive financier GMAC, land, factories, shares in foreign automakers, etc. It’s not enough. Three months ago, GM CEO Rick Wagoner announced he’d raise $15b in cash through additional asset sales. The Detroit News reports that the company’s Renaissance Center headquarters is now on the block. “General Motors Corp. wants to borrow about $500 million from one or both of Detroit’s pension funds to refinance the Renaissance Center, the automaker’s iconic world headquarters, in a move that could pump cash into the financially strapped company’s coffers. GM officials are scheduled to make a preliminary investment pitch Thursday to the city’s Police & Fire Retirement System and are trying to schedule a meeting with the pension fund representing general city employees.” If not that, RenCen’s for sale. Does it strike you as odd that GM’s hitting-up the unions instead of banks or real estate investors? Does this have anything to do with the United Auto Workers’ forthcoming VEBA payment? Anyway, at $500m, GM’s looking at a $201m loss on the deal. In theory. “We’re not going to do it because we don’t have that kind of money,” said George Orzech, police and fire pension board member. “There’s no interest that I know of, but stranger things have happened.”

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2 of 19 comments
  • Joeaverage Joeaverage on Oct 07, 2008

    So are the top level folks taking pay cuts yet or will the managementlay off the assembly line folks and assemble the cars themselves?

  • Domestic Hearse Domestic Hearse on Oct 08, 2008

    Irony of ironies...TOYOTA buys the RenCen and changes the name to the YenCen. "Ah, Mistah Wagnahsan...we have redecorated your office and moved it to the, ah, basement with the janitah. You will report to him." Seriously, if you're a fireman or cop in Detroit, do you want anyone to gamble your future with GM-owned Detroit real estate? And $500m? Heck, that's just 15 days of cash burn any more.

  • 28-Cars-Later I'm actually surprised at this and not sure what to make of it. In recent memory Senator Biden has completely ignored an ecological disaster in Ohio, and then ignored a tragic fire in Hawaii until his handlers were goaded in sending him and his visit turned into it's own disaster, but we skipped nap time for this sh!t show? Seriously? We really are through the looking glass now, "votes" no longer matter (Hillary almost won being the worst presidential candidate since 1984 before he claimed the crown) and outside of Corvette nostalgia Joe doesn't care let alone know what day it happens to be. Could they really be afraid of Trump, who AFAIK has planned no appearance or run his mouth on this issue? Just doesn't make sense, granted this is Clown World so maybe its my fault for trying to find sense in a senseless act.
  • Tassos If you only changed your series to the CORRECT "Possibly Collectible, NOT Daily Driver, NOT Used car of the day", it would sound much more accurate AND TRUTHFUL.Now who would collect THIS heap of trash for whatever misguided reason, nostalgia for a much worse automotive era or whatever, is another question.
  • ToolGuy Price dropped $500 overnight. (Wait 10 more days and you might get it for free?)
  • Slavuta Must be all planned. Increase price of cars, urbanize, 15 minutes cities. Be poor, eat bugs
  • Sid SB Not seen a Core without the performance pack yet. Prefer the more understated look of the Core vs the Circuit, but both are great fun to drive.