Will General Motors leave Detroit - and what will happen to the city?

FROM BUSINESS WEEK, TODAY: Could General Motors be headed out of Detroit? These days, nothing is unthinkable. During a briefing with reporters today, General Motors
CEO Fritz Henderson was asked if the company would move from its glass tower headquarters in downtown Detroit. That idea was kicked around in the local papers last week. Henderson was hardly convincing in his denial that GM could move. He said Were looking at everything, but added that we dont have any plans to move the headquarters. That answer has even less conviction that George H.W. Bushs read my lips quote about no new taxes.
Just think about the severe body blow to the Detroit and Michigan economies. The city is already a disaster. Reeling from years of layoffs, Detroit now has an unemployment rate around 21%. Urban blight is everywhere. The area around Detroit has fared slightly better (which is to say that its not a complete wreckage) but the regions unemployment rate is around 15%. Parts makers teeter on the edge of bankruptcy, as does GM. Chrysler is already in court. And Comerica Bank moved its headquarters to Dallas a couple of years ago. Even Volkswagen of America got out of town, moving its U.S. office to Virginia.
If GM left for suburban Detroit, as one local mayor suggested, the move would simply mean that so many white-collar jobs were cut that GM could consolidate them to other offices. If the company got out of town altogether, Detroit would be permanently damaged. Ditto for the suburbs is Chrysler doesnt make it. The companys headquarters was designed to be converted into a giant shopping mall. But who will be left to shop there would be a mystery.
When people talk about the city rebounding, they point to Pittsburgh after the decline of steel. The three rivers arent lined with mile- long mills anymore. Only a few blast furnaces flash in the night sky anywhere near downtown. But Pittsburghs city center still houses the likes of U.S. Steel, Alcoa, Mellon and PNC Banks and PPG Industries. If Detroit starts to lose the last of its management jobs, forget about a recovery. The city will become a tale of urban decay like we have never seen.
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This is why the auto-plant Midwest is where it all will begin. LOTS of nothing-to-lose people there - especially in a couple weeks when General Motors runs up against the regime's deadline to file bankruptcy by June 1. LOTS of unemployment already. A super- depressed real-estate market - especially if General Motors vacates its headquarters as it's now hinting it may. LOTS of retirees who bought into that early-retirement deal General Motors offered a couple years ago to get full pension and get out - but now are very worried that corporate bankruptcy will leave them poor. And essentially zero good jobs outside that one dying industry to keep the angry bought off into compliance with anymore.
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Repug thinking at it's best. They wanted to bankrupt GM and destroy hundreds of thousands of GM workers and millions of supply factory workers ending a great company. Now they are worried that GM will leave Detroit that they had been denouncing for decades. Crocodile tears writ large.
Of course the head of GM says over and over that they are staying but that is meaningless to our dim witted repug friends.
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In wrote:

What?
GM seems to have done all that and more without any outside help.
--
Bert Hyman St. Paul, MN snipped-for-privacy@iphouse.com

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The dumbest thing they did is listen to Cheney. They should have ignored him and built small, fuel efficient cars like the Japanese, Europeans and Koreans. But, nope, they listened to Cheney and, of course, kept the same inept management in place that had driven their sales share down and down.
Well, give the repugs 8 years and they will do miracle. They took a firm that was about to be sued for monopolistic practices in the 50's under Eisenhower and just about ruined it. Now we dems have to help the company come back.
And we are. Just watch and wonder.
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GM has been losing market share for 30 years and it's Cheney's fault? They are in trouble because they build junk, fuel efficient or not.
Bill Smith
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Bullshit. LOTS of loyal General Motors owners impressed with their product - just as lots of loyal Toyota owners are with theirs. The problem for both manufacturers - and both are losing money now - is way too many unemployed Americans just aren't financially able to buy new cars or pickups anymore, and there are way too many manufacturers competing for what the Big Four (soon Three) had all to themselves 40 years ago.
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snipped-for-privacy@netpath.net wrote:

What about the influence and power of unions? I realize their importance, but with that comes a lot of power. Have the unions created a situation which isn't sustainable, thereby leading to their own demise?
In a non-union factory, if the demands of production diminish, the company throttles back on production which means that people and machinery may be eliminated to keep a balance.
However, under aggressive union protection, the production can be throttled, but the people can't be eliminated thereby creating an artificial imbalance that can only be sustained while profits exceed expenses. If the idle personnel expenses exceed profits, the factory fails. Simple economics.
I see the fall and demise of US automobile manufacturers as a watershed event in American history, but I see it caused not by the economy (which is flexible), but rather the demands of the union (which isn't flexible).
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Bravo! Well said Sir..well said indeed!
Gunner
"Somewhere a True Believer is training to kill you. He is training with minimum food or water,in austere conditions, day and night. The only thing clean on him is his weapon. He doesn't worry about what workout to do--- his rucksack weighs what it weighs, and he runs until the enemy stops chasing him. The True Believer doesn't care 'how hard it is'; he knows he either wins or he dies. He doesn't go home at 1700; he is home. He knows only the 'Cause.' Now, who wants to quit?"
NCOIC of the Special Forces Assessment and Selection Course in a welcome speech to new SF candidates
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Gunner Asch wrote:

--
I see that both of you prefer to remain ambitiously ignorant, as the history of labor unions seems lost upon you..
--Not unexpected from a couple of cowardly fascist right-wingers..
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On Sat, 16 May 2009 19:16:52 -0600, Baron_Mind

Yawn..when the Leftards start using stock verbage like "cowardly fascist right-wingers"...its pretty obvious that they are in stark fear that other readers will understand that they are in disarray, and in fear of loosing their control of the masses.
Fear it Comrade...fear it indeed.
In 2.4-3 yrs..the masses will rise up and kill all those they consider Leftists.
Are you willing to face them, or will you move first?
Gunner
"Somewhere a True Believer is training to kill you. He is training with minimum food or water,in austere conditions, day and night. The only thing clean on him is his weapon. He doesn't worry about what workout to do--- his rucksack weighs what it weighs, and he runs until the enemy stops chasing him. The True Believer doesn't care 'how hard it is'; he knows he either wins or he dies. He doesn't go home at 1700; he is home. He knows only the 'Cause.' Now, who wants to quit?"
NCOIC of the Special Forces Assessment and Selection Course in a welcome speech to new SF candidates
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Gunner Asch schrieb:

Did someone already state the obvious? That this is bull?
The next historic/cultural step after a liberal market economy is a social market economy (wich has nothing to do with socialism or centrally planned economy even tho your reflexes will condemn it as such).
There will be no sudden shift to the right. In the long run voters will tend towards redistribution of productivity (via taxation and strong unions) and social security. The theory behind it is Rheinischer Kapitalismus and ordoliberalism.
Also, killing people because they are ,,Leftists'' is clearly illegal, unconstitutional and therefore unpatriotic. The people will simply not stand for your wish to erect a Idiocracy.
I guess the only way you could archive your bizarre goals would be through some kind of dictatorship. Wich would be hard to install, given that the people in the US value democratic and constitutional principles that much.
All that considered, it seems you are full of it :).
Karsten
--
fortune:
Next Friday will not be your lucky day. As a matter of fact, you don't
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Responding to Karsten Kruse:
[...]

Er, they stood for the GOP stealing the Whitehouse from the elected President on 2000, and they tolerated the GOP fixing the '04 election with blatently rigged computers, and they came out in droves to help the GOP SNAFU Gray Davis getting the Enron victim's money back from the fat cats that stole it, and they accepted the big fat lies regarding leaving the gulf states with no protection from what they knew was coming down the pipe, and still they sign up for military service despite decades of information now available at the push of a button to anyone with a nearby internet connection that informs them what these so called wars are really all about, and they're quite happy enough to stand by and watch Obama do a repeat of (the UK's) Teflon Tony's act USA styleee, and so on...
Just which people did you have in mind there?
--
*===( http://www.400monkeys.com/God /
*===( http://principiadiscordia.com /
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So they changed the law and allowed presidents to get more than the 2 terms limit by law? Odd...I didnt see Bubba running again. Did you?
Then Bush could have run again??????? Dayam...!!!!

Odd...since it was the Left that got their hands spanked for computer fraud in both 2000 and 2004.
"Somewhere a True Believer is training to kill you. He is training with minimum food or water,in austere conditions, day and night. The only thing clean on him is his weapon. He doesn't worry about what workout to do--- his rucksack weighs what it weighs, and he runs until the enemy stops chasing him. The True Believer doesn't care 'how hard it is'; he knows he either wins or he dies. He doesn't go home at 1700; he is home. He knows only the 'Cause.' Now, who wants to quit?"
NCOIC of the Special Forces Assessment and Selection Course in a welcome speech to new SF candidates
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Distro pruned to RMC
And exactly how does any of this address the current and increasingly serious socio-economic problems?
Red or blue, a d**kweed is a d**kweed, a f**kwit is a f**kwit, and scam artist is a scam artist.
What fraud has been prevented? What injury has been redressed? What hungry child has been fed? What ill/injured person has had medical care provided? What job has been created?
What are some practical suggestions for (A) addressing the current problems, and (B) preventing these from reoccurring? Indeed, in most cases a specific objective problem has not even been identified.
RCM is about solving problems and getting results, not pi**ing and moaning.
Unka' George [George McDuffee] ------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).
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On May 17, 11:31pm, F. George McDuffee <gmcduf...@mcduffee- associates.us> wrote:> RCM is about solving problems and getting results, not pi**ing

Damn. And I thought it was about metalworking.
Dan
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distro pruned to rcm
Follow-up article in Detroit Free Press re subject.
Be sure and read comments.
http://www.freep.com/article/20090528/COL06/905280506/?imw=Y
also see http://www.freep.com/article/20090528/BUSINESS01/90528018/Suppliers+Visteon++Metaldyne+file+for+bankruptcy+protection Suppliers Visteon, Metaldyne file for bankruptcy protection FWIW -- Visteon is Ford's version of Delphi.
If you have GM bonds see http://www.freep.com/article/20090528/BUSINESS01/90528037/GM+sweetens+pot+for+bondholders+in+deal
Unka' George [George McDuffee] ------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).
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