Companies:General Motors Corp
By: Reuters | 11 May 2009 | 01:55 PM ET
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General Motors is open to considering moving its headquarters from Detroit, selling off U.S. plants and even renegotiating parts of its restructuring plan with its major union, the new chief executive said Monday.
Fritz Henderson
CNBC.com
Fritz Henderson
CEO Fritz Henderson, on a conference call with reporters, said it was more probable that GM [GM 1.44 -0.17 (-10.56%) ] was headed for bankruptcy by June 1âthe U.S. government-imposed deadline for the automaker to restructure or face bankruptcy.
"It's more probable that we would need to accomplish our goals in a bankruptcy," Henderson said. "There's still a chance for it to be done outside a court proceeding."
A move by GM to leave Detroit would represent another blow for the economy of a region already reeling from the bankruptcy of Chrysler and the sharp downturn in auto manufacturing.
GM purchased its glass-towered headquarter building known as Detroit's Renaissance Center last year for $625 million.
The 100-year-old automaker has been based there since 1996.
"As we look at the structure, look at the business, we're looking at everything, particularly as we slim," Henderson said. "At this point, I don't have anything to report. We don't have any such plans, but if we did it would be motivated by business rationale, which would be cost-efficiency and speed."
GM has until June 1 to reach deals that would slash debt owed to bondholders and the United Auto Workers union and to win concessions from the union that would cut operating costs for its remaining U.S. plants under terms set by the Obama administration's autos task force.
It has already told bondholders that it would miss a June 1 debt payment of $1 billion.
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UAW is about to get
By: Reuters | 11 May 2009 | 01:55 PM ET
Text Size
General Motors is open to considering moving its headquarters from Detroit, selling off U.S. plants and even renegotiating parts of its restructuring plan with its major union, the new chief executive said Monday.
Fritz Henderson
CNBC.com
Fritz Henderson
CEO Fritz Henderson, on a conference call with reporters, said it was more probable that GM [GM 1.44 -0.17 (-10.56%) ] was headed for bankruptcy by June 1âthe U.S. government-imposed deadline for the automaker to restructure or face bankruptcy.
"It's more probable that we would need to accomplish our goals in a bankruptcy," Henderson said. "There's still a chance for it to be done outside a court proceeding."
A move by GM to leave Detroit would represent another blow for the economy of a region already reeling from the bankruptcy of Chrysler and the sharp downturn in auto manufacturing.
GM purchased its glass-towered headquarter building known as Detroit's Renaissance Center last year for $625 million.
The 100-year-old automaker has been based there since 1996.
"As we look at the structure, look at the business, we're looking at everything, particularly as we slim," Henderson said. "At this point, I don't have anything to report. We don't have any such plans, but if we did it would be motivated by business rationale, which would be cost-efficiency and speed."
GM has until June 1 to reach deals that would slash debt owed to bondholders and the United Auto Workers union and to win concessions from the union that would cut operating costs for its remaining U.S. plants under terms set by the Obama administration's autos task force.
It has already told bondholders that it would miss a June 1 debt payment of $1 billion.
---
UAW is about to get
