GM: Give Us Tax Credits Or We'll Lose The RenCen

Edward Niedermeyer
by Edward Niedermeyer

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.

Edward Niedermeyer
Edward Niedermeyer

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  • Derm81 Derm81 on Nov 17, 2009
    “If Detroit’s smart, it’ll just do the tax credit – 2,500 people do a lot of shopping and eating downtown. Not so true. Most people in the RenCen usually stay within the RenCen since there are a lot of eateries and shops available. MAYBE on a friday people will hit up Greektown for some gyros, but that is it.
  • 50merc 50merc on Nov 18, 2009

    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.

  • Ted Lulis Head gaskets and Toyota putting my kids through college👍️
  • Leonard Ostrander Plants don't unionize. People do, and yes, of course the workers should organize.
  • Jalop1991 Here's something EVangelists don't want to talk about, and why range is important: battery warranties, by industry standard, specify that nothing's wrong with the battery, and they won't replace it, as long as it is able to carry 70% or more of its specified capacity.So you need a lot of day 1 capacity so that down the road, when you're at 70% capacity with a "fully functioning, no problem" car, you're not stuck in used Nissan Leaf territory."Nothing to see here, move along."There's also the question of whether any factory battery warranty survives past the original new car owner. So it's prudent of any second owner to ask that question specifically, and absent any direct written warranty, assume that the second and subsequent owners own any battery problems that may arise.And given that the batteries are a HUGE expense, much more so than an ICE, such exposure is equally huge."Nothing to see here, move along."
  • Roger hopkins The car is in Poland??? It does look good tho...
  • Kwik_Shift_Pro4X The push for EV's is part of the increase in our premiums. Any damage near the battery pack and the car is a total loss.
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