GM Leaving Detroit?

Looks like GM is thinking of moving out of Detroit.

General Motors has received $15.4 billion in federal loans, and the government deadline to restructure or seek Chapter 11 protection is just over two weeks away. But the company must reach concessionary agreements with unions, persuade thousands of bondholders to exchange $27 billion in debt for 10 percent of GM's stock, cut thousands of dealers, close plants and lay off more salaried workers.

Under Chapter 11 reorganization, a company can stay in operation under court protection while sheds debts and unprofitable assets to emerge in a stronger financial position.

Also Monday, Henderson left open the possibility that GM would move its corporate headquarters out of Detroit. The company, he said, is looking at everything within its business.

"It's not like we have that queued up at the top of our list," he said, adding that GM has a large number of people in Detroit and is proud to be here.

He would not comment about reports about Fiat Group SpA's interest in getting 80 percent of GM's European Opel operations, saying that any structure must address the needs of both partners.

Henderson said GM has an urgent need for funding from the German government, so any partner for its European operations would have to be suitable to the government.

All jokes about Detroit aside, don't be too surprised if GM ends up moving it's headquarters overseas, especially one that does not have labor unions. It would be a very good way of getting away from the UAW and Obama's socialists at the same time.