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I think it would be good for Texas and bad for Michigan at first, but I think it would soon change. Michigan's economy would diversify, and the company that can't even run itself would help bring Texas' economy down with it just like it did with Michigan. I personally hope it's not true.
This would be bad for Michigan...maybe they're just trying to get the desperate state to help them out even more?
I'm curious, do you have a source for this rumored move to Texas?
I did read in the local newspapers and hear on several local television news shows that GM might be considering a move from the Renaissance Center in downtown Detroit to the GM Tech Center in Warren, Michigan (a suburb north of Detroit).
Specifically, the mayor of Warren was rumored to be in talks with GM about possible tax abatements if the headquarters were moved to Warren.
When questioned about this rumor during a press conference, GM CEO Fritz Henderson replied
Quote:
We're looking at, frankly, everything within our business, but it's not like we have that queued up at the top of our list. At this point, I don't have anything to report. Our headquarters is here, we've got a fairly large complement of people here and we're proud to be here.
We don't have any such plan but if we did it would be motivated by business rationale, which would be cost, efficiency and speed.
I'm having trouble seeing how moving GM's headquarters to Texas and far away from the bulk of its factories and auto suppliers would help GM as a corporation.
Without government help, I dont think it will ever be able to survive in the future. Innovation as far as the auto industry is headed in a direction where the business-as-usual policies of GM cannot exist.
It wouldn't be the first corporate HQ that's moved to sunnier climes. If GM brought only the HQ to Texas, there would be no problem with communication between the manufacturing plants and the corpororate office. This isn't 1908. Telephones are common these days.
Without government help, I dont think it will ever be able to survive in the future. Innovation as far as the auto industry is headed in a direction where the business-as-usual policies of GM cannot exist.
GM's problem is not innovation. They know how to build cars. They also sell plenty of cars (until the economy crashed). They are still in a virtual tie with Toyota for the world's largest automaker.
The problem is profitability. They only make money on trucks and SUVs. They have no problems with building small, fuel efficient cars. They just don't make any money on them. When gas prices spiked, everyone stopped buying big vehicles, and GM's only profit-maker was gone. They can sell millions of hybrids or whatever and it won't help. GM's labor and legacy costs are too high to be competitive. Without truck sales to cover up the madness of the labor contracts, GM has no chance.
I get tired of hearing that GM doesn't build "cars people want" or that they are "fighting the green movement." BS. Truck sales = survival for GM. To say that they are stubborn or unwilling to catch up to the times is just ignorant.
GM's problem is not innovation. They know how to build cars. They also sell plenty of cars (until the economy crashed). They are still in a virtual tie with Toyota for the world's largest automaker.
The problem is profitability. They only make money on trucks and SUVs. They have no problems with building small, fuel efficient cars. They just don't make any money on them. When gas prices spiked, everyone stopped buying big vehicles, and GM's only profit-maker was gone. They can sell millions of hybrids or whatever and it won't help. GM's labor and legacy costs are too high to be competitive. Without truck sales to cover up the madness of the labor contracts, GM has no chance.
I get tired of hearing that GM doesn't build "cars people want" or that they are "fighting the green movement." BS. Truck sales = survival for GM. To say that they are stubborn or unwilling to catch up to the times is just ignorant.
They seem to do well overseas too. I think I saw somewhere that they are big in China.
Hope not. As a corporation, GM has given much to Detroit over the years, and converesely, their downfall has taken much from the city. If they have any future at all, Detroit should share in it.
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