Chrysler/Fiat Global HQ: Could this end up downtown?

[Don K]

White collar workers are dying to go to the big 3 because of the salary and benefits. I have relatives that work at the tech center in Warren. People from all over the country have moved here recently to work in freaking Warren. Chrysler isn't going to gain workers by moving to downtown Detroit. You would have to be an idiot to turn down Chrysler.

Maybe true lately with a crappy economy where college or grad school grads are scrambling for jobs, but I'll tell you in a semi-crappy economy from '00-'07 it was tough to get out-of-towners to come here to work, and in the 90's it was damned near impossible. Even back in the 80's when we were recruiting people for Ford, we knew we had to do a selling job on the Detroit area.

[Gistok]

Whoa...... I was just reading several articles about Fiat.... and the Chrysler-Fiat merger [[they now own something like 58% of Chrysler)... is more than just a story about Detroit versus Auburn Hills.... it's Turin Italy [[taxes 70%) versus USA [[taxes 30%).

If Fiat were to move their world HQ to the USA, it would reduce their worldwide taxes quite a bit. And in that type of a scenario... they could have the bulk of their USA operations in Auburn Hills, the bulk of their European operations in Turin Italy.... and still have their World HQ in downtown Detroit. After all didn't Comerica move their [[200 staff) HQ to Texas, while still leaving a large workforce in Detroit?

I could see that a Detroit HQ for Fiat [[yes... the former Comerica Tower... now back to One Detroit Center)... would be great building [[in a European Gothic style) to house their world HQ... no matter how small.their presence in the 1 million sq. ft. 621 ft. tall tower.

In a way it would still separate their Italian [[Fiat in Turn) and American [[Chrysler in Auburn Hills) operations with a separate HQ in downtown Detroit.

I'm not saying this is going to happen, but the lower taxes [[Italy versus USA), would make Auburn Hills versus Detroit taxes small potatoes by comparison. Check out this article...
http://carscoop.blogspot.com/2011/03...dquarters.html

[Hypestyles]

regardless of headquarters, Chrysler needs to do much more investment in urban Detroit..

[Orthophonic]

regardless of headquarters, Chrysler needs to do much more investment in urban Detroit..

Perhaps the HQ building already exists and is already owned by Chrysler. And perhaps the inspiring words of Super Bowl commercials could be backed up by a little neighborhood investment...

[DetroiterOnTheWestCoast]

I might have missed it, but what is Chrysler going to do with their space in the Dime?

[ThisIsForTheHeart]

I've talked to 2 folks working at Chrysler in Auburn Hills, and they are bursting at the seams, space wise. While I wouldn't count out a larger Detroit presence... having the Chairman buy a home in the outer reaches of Oakland County, doesn't bode well for the concept of a downtown HQ...

Since both Chrysler and GM are neck and neck for being Detroit's largest employer [[outside of government, schools and health care)... I don't buy any arguments against them bringing in additional employees... only this time downtown, ... for whatever reason [[taxes, commutes, etc.).

How many big shots that work in Manhattan own homes all across from the suburbs to resorts out in the Hamptons, plus homes in the city? A lot. So I don't see him buying a home out in the country of northern Oakland county to be deterrent.

The Italian dude seems like the kind of guy that would helicopter in to work. lol

[animatedmartian]

The article says he is moving from downtown Birmingham. So he's actually moving farther away from Detroit.

But even still, don't most Chrysler cars get 30 MPG now? The first superbowl ad definitely wasn't a short trip.

[iheartthed]

White collar workers are dying to go to the big 3 because of the salary and benefits. I have relatives that work at the tech center in Warren. People from all over the country have moved here recently to work in freaking Warren. Chrysler isn't going to gain workers by moving to downtown Detroit. You would have to be an idiot to turn down Chrysler.

Two years ago you would have looked like an idiot for accepting an offer from Chrysler. I don't doubt that people do want to work for the Big 3. But white collar jobs at the Big 3 are hardly the most prestigious white collar jobs in America.

The Big 3 white collar recruitment has to compete against companies that do work that is a lot sexier and are located in much more desirable locations than Detroit. They have to compete for engineers who can work in Silicon Valley, defense, aerospace, etc. They have to compete for MBAs who can work on Wall St., a Big 4 audit firm, a prestigious consulting firm, etc. To be honest, they don't even compete that well for kids graduating from U of M, which is their home turf, that is to say nothing of how well they compete for national universities located in other areas of the country.

[poobert]

Two years ago you would have looked like an idiot for accepting an offer from Chrysler. I don't doubt that people do want to work for the Big 3. But white collar jobs at the Big 3 are hardly the most prestigious white collar jobs in America.

The Big 3 white collar recruitment has to compete against companies that do work that is a lot sexier and are located in much more desirable locations than Detroit. They have to compete for engineers who can work in Silicon Valley, defense, aerospace, etc. They have to compete for MBAs who can work on Wall St., a Big 4 audit firm, a prestigious consulting firm, etc. To be honest, they don't even compete that well for kids graduating from U of M, which is their home turf, that is to say nothing of how well they compete for national universities located in other areas of the country.

The educated people I know forced to relocate to here from elsewhere for employment speak of it like a prison sentence. That includes the glorious cultural mecca of Oakland County, too.

I also don't know of anyone dying to work for the automotive industry, except for the desperately unemployed or the lifelong Metro Detroiters who don't know of the world outside.

[Gistok]

The educated people I know forced to relocate to here from elsewhere for employment speak of it like a prison sentence. That includes the glorious cultural mecca of Oakland County, too.

I also don't know of anyone dying to work for the automotive industry, except for the desperately unemployed or the lifelong Metro Detroiters who don't know of the world outside.

I think that in this economy, you're underestimating the workforce...

[iheartthed]

The educated people I know forced to relocate to here from elsewhere for employment speak of it like a prison sentence. That includes the glorious cultural mecca of Oakland County, too

Yeah, even some of the Big 3 execs don't hold primary residence in Michigan. Is Alan Mulally still commuting between Dearborn and Seattle? Mark Fields, head of Ford Americas, still lives in Florida according to the NYT article on him that was published earlier this week.

[Patrick]

The educated people I know forced to relocate to here from elsewhere for employment speak of it like a prison sentence. That includes the glorious cultural mecca of Oakland County, too.

I also don't know of anyone dying to work for the automotive industry, except for the desperately unemployed or the lifelong Metro Detroiters who don't know of the world outside.

Ha, I am the opposite. I had to move to DC, which has the best job market and an amazing amount of culture and potential. I'd move back to SE Michigan in a heartbeat.

[iheartthed]

Ha, I am the opposite. I had to move to DC, which has the best job market and an amazing amount of culture and potential. I'd move back to SE Michigan in a heartbeat.

But how many of your peers who don't have ties to Michigan would move there?

[Patrick]

Good point, but then again, if you show an exec what kind of house he could get in SE Michigan for a mil and compare that to the DC area or NYC, he or she would be blown away. Different strokes for different folks.

[jtf1972]

What those who believe Auburn Hills is greater than Detroit and there is no logical reason to have a global HQ in Detroit over Auburn Hills, have no idea what the perception of Auburn Hills is from a global viewpoint.

Hint: There is none.

In this little slice of the globe we call home, people who know nothing else can argue all day long how Detroit is nothing and the best place for anything is somewhere you can drive to with a big parking lot. Outside of this area, Auburn Hills is just a place you never heard of outside of Detroit.

A healthy and vibrant Detroit is a POSITIVE for EVERYBODY in the entire region.

While Detroit needs to diversify itself, a global HQ is a positive thing. We need as many as we can get!

[jtf1972]

To continue...

This isn't about attracting the best and the brightest in the Detroit area. We need to attract the best and the brightest PERIOD. As long as we continue to see Detroit as disposable and places such as Auburn Hills as not only viable alternatives, but preferred ones... we will lose to other city regions that recognize that the central city weighs extremely heavy in promoting the image of the entire region.

There is a reason there are so many books, websites, movies, et all dedicated to Detroit itself and relatively few to its suburbs...

An apple with a rotten core is still a rotten apple, no matter how pretty you think your part of the outer skin is. And nobody eats a rotten apple.

[313WX]

What those who believe Auburn Hills is greater than Detroit and there is no logical reason to have a global HQ in Detroit over Auburn Hills, have no idea what the perception of Auburn Hills is from a global viewpoint.

Hint: There is none.

In this little slice of the globe we call home, people who know nothing else can argue all day long how Detroit is nothing and the best place for anything is somewhere you can drive to with a big parking lot. Outside of this area, Auburn Hills is just a place you never heard of outside of Detroit.

A healthy and vibrant Detroit is a POSITIVE for EVERYBODY in the entire region.

While Detroit needs to diversify itself, a global HQ is a positive thing. We need as many as we can get!

Great posts jtf1972. I completely agree with both of them.

Heck, look no further than the "Imported from Detroit" campaign or the "Detroit Piston" to completely back up your point.

[Gistok]

Ya know... there is somewhat of a resemblance of the architecture of northern Italy where Fiat has its' HQ, and a potential Detroit global HQ [[even if they only house a fraction of the building)...

Northern Italy...
http://en.wikipedia.org/wiki/File:Mi..._del_Duomo.jpg
Detroit...
http://en.wikipedia.org/wiki/File:Comericatower.jpg

[Bham1982]

What those who believe Auburn Hills is greater than Detroit and there is no logical reason to have a global HQ in Detroit over Auburn Hills, have no idea what the perception of Auburn Hills is from a global viewpoint.

This is a total logical fail.

No one is saying or implying that Auburn Hills is "greater" than Detroit.

And there's little to no relationship between a company's mailing address and overall brand development.

Apple is in Cupertino, CA, which is a crappy anonymous tract house suburb; it doesn't mean that Cupertino is "greater" than Paris or NYC or wherever, and it doesn't damage Apple's brand.

[Hermod]

Ha, I am the opposite. I had to move to DC, which has the best job market and an amazing amount of culture and potential. I'd move back to SE Michigan in a heartbeat.

In the DC area, the sexiest and best paying private sector [[not gummint) jobs are not in the city of Washington, they are out in Virginia and Maryland near the beltway exits [[Washington's "Main Street") and a lot of the government jobs are out there as well. Tyson's Corners which is only one beltway exit has more square feet of occupied office space than does the whole of the Miami-Dade County area.

[Packman41]

Hmmm... Anyone remember that Volkswagen [[Europe's largest automaker) had their North America headquarters in Auburn Hills until 2009 when they left for Fairfax County, VA?

Here is part of what they said in their departure announcement:

Source: http://www.msnbc.msn.com/id/20626252...igan-virginia/


Volkswagen is moving its North American headquarters out of the Detroit area — the nation’s automotive capital — to the suburbs of the nation’s capital and will cut 400 jobs in the process, the German automaker said Thursday.

[Audi] .. said the company scouted 14 different locations but settled on northern Virginia, which offered $6 million in economic incentives.

He said he wanted to get Volkswagen’s headquarters closer to the company’s customer base, which is strong on the East and West coasts and particularly strong in the Mid-Atlantic region. He also said Virginia’s reputation as a business-friendly state and proximity to Dulles International Airport, a major international hub, were strong factors. “We need to be in the heart of our customer” base…”

[Audi].. did not think it would be difficult to find qualified auto executives and senior staff in the Washington area, given the educational levels in the region.

The company’s decision to move its North American headquarters highlights the disparate economic fortunes of the Washington area and Detroit. Metropolitan Washington has one of the lowest unemployment rates of any metro region, at 3.3 percent, while Detroit, with an 8.4 percent unemployment rate, has the nation’s highest. Fairfax County, home to the new headquarters, has the highest median household income of any county in the nation, according to the most recent census estimates.

IIRC, they also mentioned the availability of of good housing stock in the Fairfax area. Which I thought laughable as the DC area has the highest appreciation of home prices in the USA, while the detroit area has the worst appreciation of home prices in the USA [[See Case-Shiller)

In other words they wanted to be near people such as THEM, not people such as US.

By the way, VW had talked about building a new manufacturing facility in the USA and Virginia was hoping to get it. They did not. In the spring of last year VW opened up their new plant in Chattanooga, TN.

Again, people such as them.

[Hermod]

In other words they wanted to be near people such as THEM, not people such as US.

Not sure what you mean by that, Fairfax County is very diverse.


Yes, edit to add: In the 2010 Census, Fairfax County had 54.6% population that was "White, not of Hispanic origin". That sure doesn't sound like dear, old Germany.

[Packman41]

Not sure what you mean by that, Fairfax County is very diverse.
.

Yes, Fairfax is a diverse place, but that is not the demographic VW had in mind.

VW/Audi/Bentley moved to an area that had a “high education level.” Michigan now ranks 36 or 37 out of 50 states in education level.

Higher education is directly correlated to income and Fairfax County has the highest median income level in the country. Michigan has now dropped to 35^th out of 50 states in median household income – about parallel with our education level.

Fairfax also has one of the lowest unemployment rates of any metro region – that might be due to the education level. Those folks know how to get a job and hold onto it - or create their own business. Less education and you are dependent on someone else to give you a job or have an entitlement mentality.

I won’t even get into the “business friendly” discussion.

VW, through their market research, perceived their customer base [[especially for Audi and Bentley) as being more affluent and better educated – that is the THEM. And they moved to be closer to that customer base.

[Pickford-Bentler]

Not sure what you mean by that, Fairfax County is very diverse.


Yes, edit to add: In the 2010 Census, Fairfax County had 54.6% population that was "White, not of Hispanic origin". That sure doesn't sound like dear, old Germany.

Fairfax is becoming one of those multicultural melting pots. In fact, I believe that Sarah Palin inferred that Northern Va was an area on non-real Americans when she was on the stump in Southern Va. My colleagues in Northern Va voted accordingly and the rest is as they say - history.

The DC suburbs with maybe the exception of PG county tend to have real integration. By real I mean people of all cultural groups interact on a personal level, at work, at home and at play.. I contrast that with the more stark dividing lines one sees in DC. For example, the Anacosta River creates a divide as stark as 8 mile road in Metro Detroit.

IMHO, the suburbs are where true integration is happening in the USA. Metro Detroit is behind Metro DC in this process.

For the record, I presently live in Montgomery County.

[Bham1982]

VW, through their market research, perceived their customer base [[especially for Audi and Bentley) as being more affluent and better educated – that is the THEM. And they moved to be closer to that customer base.

The Northeast is basically target VW territory.

European car companies have their highest market share in the Northeast U.S., which is why many have their North American HQ there.

In contrast, Japanese car companies have their highest market share in the West, which is why many have their North American HQ there.

It's lessened from past years, but there's still a bit of a regional stigma for those of us who drive a non Big Three vehicle in Metro Detroit.