Warren mayor had lobbied company to shift
workers to Warren’s Tech Center campus

By Brian C. Louwers
C & G Staff Writer

WARREN — Based on his previous statements about General Motors Corp.’s possible relocation of employees from the Renaissance Center in Detroit to the GM Technical Center in Warren, Warren Mayor Jim Fouts seemed surprisingly happy when the company announced on Feb. 5 that the employees would be staying put.

“Obviously I’m pleased that General Motors has reached an agreement that is financially good for General Motors. Because of Jim Fouts’ proposal that I offered them last year, it ultimately saves them money.”

Last year, Fouts used the podium on more than one occasion to publicly press a proposal that would have offered GM lucrative incentives, including an unprecedented 30-year tax abatement, to consolidate personnel and operations from its headquarters in the Renaissance Center to the Tech Center campus.

GM Spokesman Tom Wilkinson said on Feb. 5 that the company had concluded its review of its operations in the region. The review included an analysis of the company’s real estate footprint and its facilities.

In confirming the announcement that the 3,000 employees would remain at the Renaissance Center, Wilkinson said the final decision was ultimately driven by the needs of the business, and not necessarily by incentives that had been offered by the Michigan Economic Development Corp. 

“We’re choosing instead to put our energy and our resources into developing new vehicles and new technologies,” Wilkinson said, adding that the company would also focus on marketing and its relationships with dealers. “The MEDC had come up with some incentives, but this was primarily driven by the needs of the business. It was a very substantial amount of money and some pretty significant disruption to move 3,000 people from one campus to another.”

Wilkinson said there could be some “smaller moves” as the company continues to shift personnel to its four core campuses in the region, including the Tech Center.

Fouts said regardless of what the company said about the decision, he thinks it was certainly based on their bottom line, one which his administration improved.

“It could not have taken place without Warren first offering them some inducements.  The bottom line is it’s a good situation for everybody,” Fouts said. “They did not rule it (a move to Warren) out in the future. For now my proposal saved them $21 million.”