GM Will Not Move Employees from Detroit

Back in November, GM announced its plans to move 1,500 employees from its Detroit headquarters. That was terrible news for the city, so it decided to make a deal with GM and offer important tax breaks to convince the car manufacturer to stay, says automobilesmag.com.

"It came down purely to a business decision," said Tom Wilkinson, a GM spokesman. "The move was going to cost tens of millions of dollars and the decision was made that right now the best thing to do was spend that money on product and on efforts to support our dealers and reach customers."

"Today's decision by GM is great news for the city of Detroit," said Detroit Mayor Dave Bing. "Retaining jobs is a top priority of my administration and I appreciate their commitment to the city."

GM’s initial plan was to move 5,000 workers out of Detroit to some of its existing locations like the company's technical center located in the suburb of Warren, Michigan. As that is no longer necessary, the workers will remain in the RenCen, GM’s group of seven skyscrapers. Out of the seven towers, two used to be filled with GM staff, but nowadays reports say that only one of the towers is occupied.

GM’s decision is a reason to celebrate for the city of Detroit, as the Motor city has serious money problems. Some say that it is $300 million in debt, so the $6 million in revenues generated by GM is very important to the officials. Therefore it is expected that Detroit will offer important incentives to other businesses to attract them to the downtown location.