GM May Pull Out of Detroit Headquarters

Exit would be huge blow for Motor City

By Greg Wilson
|  Tuesday, May 12, 2009  |  Updated 5:30 AM PDT
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GM CEO Fritz Henderson said he cannot rule out leaving the company's Detroit headquarters.

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General Motors could put Detroit in its rear view mirror as it races down the road toward a likely bankruptcy, the company's top man said yesterday.

GM CEO Fritz Henderson told reporters in a conference call that leaving the company's $625 million headquarters is on the table as its seeks to restructure under pressure from the Obama Administration. The company must reach deals to reduce liabilities to bondholders and unions by June 1 or face bankruptcy.

"As we look at the structure, look at the business, we're looking at everything, particularly as we slim," Henderson said on a conference call.

Other restructuring plans could include selling offplants in the U.S. and making more cars in Mexico and Korea. But those plans are vehemently opposed by the United Auto Workers.

An exit from Detroit would be the latest blow to a city already hurting after the recent bankruptcy of Chrysler. Henderson conceded that the former No. 1 automaker could be on Chrysler's tail.

"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."

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