GM Gets Tax Breaks, Will Keep RenCen Headquarters
DETROIT - The state of Michigan quadrupled its offer to keep General Motors Co. from relocating about 2,000 employees from the Renaissance Center, and teamed with local officials to dangle tax breaks that could total $221 million, reported The Detroit News.
The package helped convince GM to scrap plans to move about half of its work force out of the iconic riverfront complex as part of a broad facilities consolidation. GM also cited the high cost -- tens of millions of dollars -- and disruption of relocating workers to the Warren Tech Center as reasons to maintain a sizeable staffing level at the RenCen.
The sweetened offer ends a prolonged saga that threatened to sap tax revenue from Detroit, which is facing a roughly $300 million budget deficit, and leave GM with a half-empty world headquarters following thousands of job cuts during the company's financial crisis last year. It also ends a tug-of-war between the city and Warren, which was wooing GM to relocate as many workers as possible to the Macomb County community.
In December, GM trimmed the number of workers it vowed to keep at the RenCen to 2,000 from 2,500 despite the Michigan Economic Growth Authority offering a $50 million tax break. The authority has since upped the offer to as much as $200 million, a source told The Detroit News, and GM will keep about 5,000 workers downtown.
More Industry

Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →