Would Fiat consider downtown Detroit?

**tkelly1986** · May-15-13, 10:54 AM

I'm not trying to stir the hornet's nest, though this inevitably will, but would Fiat consider locating this HQ downtown? With the interest Sergio Marchionne has show for the city, this seems like a possible fit. Moreover, Sergio has joined a few local boards and seems to be close to Mr. Gilbert. With that being said, why couldn't a combined Chrysler/Fiat Corporate presence work downtown, while the tech center [[and any tech jobs coming from Italy) stay in Auburn Hills? It seems this would negate many of the predicted complaints since some of these jobs will be moving from an international location.

http://www.detroitnews.com/article/20130515/AUTO0101/305150384/Fiat-said-mull-U-S-headquarters-following-Chrysler-merger?odyssey=tab|topnews|text|FRONTPAGE

**Bham1982** · May-15-13, 10:57 AM

Why would they move downtown, when they already have a huge, newish HQ building close to all their suppliers, and 10 minutes from the CEO's home?

I mean, even if they did so, they would just eat the cost of the multi-billion complex? Talk about a white elephant.

**iheartthed** · May-15-13, 11:00 AM

Originally Posted by Bham1982

Why would they move downtown, when they already have a huge, newish HQ building close to all their suppliers, and 10 minutes from the CEO's home?

I don't think that matters since they are reportedly considering New York.

**tkelly1986** · May-15-13, 11:11 AM

I thought the tech center was at capacity?

**Bham1982** · May-15-13, 11:18 AM

Originally Posted by tkelly1986

I thought the tech center was at capacity?

I don't know, but I would be surprised if that were true.

The Tech Center is epic in size. It has 5.5 million square feet of space, with room for expansion. Even GM HQ is small in comparison.

**AuburnSpeedster** · May-15-13, 11:32 AM

Well they already do have some occupied space in the Dime Building. Wait, I'm sorry, Chrysler House. But Marchionne has been talking about moving Fiat's HQ from Italy to the US for a while. And Detroit has been mentioned many times. That may mean expanding the Tech Center, or expanding their presence in Downtown. Either way it's good for the region. But maybe Gilbert may have something up his sleeve to expand their downtown footprint. We'd have to wait and see.

**canuck** · May-15-13, 12:18 PM

I doubt that Italy would let this company's international HQ move. Not with the present state of the italian and european economy...

**downtownguy** · May-15-13, 12:30 PM

Sorry for thread-jacking, but the byline on that article got my attention - Bloomberg News. Remember when we used to have newspapers in this town that covered the auto industry?

**AuburnSpeedster** · May-15-13, 12:46 PM

Originally Posted by canuck

I doubt that Italy would let this company's international HQ move. Not with the present state of the italian and european economy...

The Italian govt. has been pretty mad at Fiat lately for even attempting to build cars in the US that are only for the US market. It's going to be very difficult for them to move. But they want to so they can have more freedome

**Packman41** · May-15-13, 01:06 PM

I have no idea why Fiat would go to downtown in Detroit when there is a nearly new office building within a short distance from the CTC.

At the SW corner of South Boulevard and Centerpoint Parkway in Pontiac stands a vacant [[going on 4 years now) 1.2 million square foot office building on 72 acres. Benefits include free parking for all employees and in a renaissance zone with MINIMAL real estate taxes.

Check it out here:
http://www.racertrust.org/files/pont...g-brochure.pdf

Racer Trust is the entity selling off all the out-of-bankruptcy assets. Other sales by Racer Trust in this former GM Truck Campus have been as low as 8 cents on the dollar. That is the movie studio guys bought a 400,000 sq. ft office building on 17 acres that cost GM $52 million to build in 1998. It was sold to the movie studio guys for $3.65 million in 2009/10.

Bargains are there near to the CTC to coordinate staff, no need to go downtown.

**Honky Tonk** · May-15-13, 01:10 PM

Originally Posted by AuburnSpeedster

But they want to so they can have more freedome

How is moving going to give Fiat more freedom?

**southen** · May-15-13, 01:15 PM

Originally Posted by Packman41

I have no idea why Fiat would go to downtown in Detroit when there is a nearly new office building within a short distance from the CTC.

At the SW corner of South Boulevard and Centerpoint Parkway in Pontiac stands a vacant [[going on 4 years now) 1.2 million square foot office building on 72 acres. Benefits include free parking for all employees and in a renaissance zone with MINIMAL real estate taxes.

Check it out here:
http://www.racertrust.org/files/pont...g-brochure.pdf

Racer Trust is the entity selling off all the out-of-bankruptcy assets. Other sales by Racer Trust in this former GM Truck Campus have been as low as 8 cents on the dollar. That is the movie studio guys bought a 400,000 sq. ft office building on 17 acres that cost GM $52 million to build in 1998. It was sold to the movie studio guys for $3.65 million in 2009/10.

Bargains are there near to the CTC to coordinate staff, no need to go downtown.

google their current headquarters and let me know if you still think a bland bargain office park is something they're interested in... they may not like downtown but they will do something unique for their headquarters.

**michimoby** · May-15-13, 03:44 PM

Originally Posted by southen

google their current headquarters and let me know if you still think a bland bargain office park is something they're interested in... they may not like downtown but they will do something unique for their headquarters.

...you mean, like, putting it in Manhattan?

**1953** · May-15-13, 03:56 PM

If Fiat has ever read anything on corporate strategy, they will want to be in the auto cluster in the upper Midwest, not in New York.

**southen** · May-15-13, 04:05 PM

Originally Posted by michimoby

...you mean, like, putting it in Manhattan?

image wise manhattan is probably a bigger splash, but it makes more business sense to be in the detroit area. rent/land is a lot cheaper here and you will be with chrysler and all of the suppliers.

**canuck** · May-15-13, 04:29 PM

Originally Posted by southen

google their current headquarters and let me know if you still think a bland bargain office park is something they're interested in... they may not like downtown but they will do something unique for their headquarters.

Maybe build a leaning Tower of Detroit somewhere.

**michimoby** · May-15-13, 04:52 PM

Originally Posted by southen

image wise manhattan is probably a bigger splash, but it makes more business sense to be in the detroit area. rent/land is a lot cheaper here and you will be with chrysler and all of the suppliers.

I always found Boeing's move to Chicago to be quite interesting, especially since most of its mfg. is still focused in Seattle. But their suppliers are scattered everywhere, so having a more centralized locale makes sense.

However, GM has been running some of its Treasury operations out of NYC for some time, so it's possible to have dual locales. It may work in their favor the next time they have to drive to DC for a bailout anyway.

**AuburnSpeedster** · May-15-13, 05:14 PM

Originally Posted by Honky Tonk

How is moving going to give Fiat more freedom?

http://www.allpar.com/news/index.php...-without-italy

http://www.allpar.com/news/index.php...ot-water-again

Eh, not the best examples I could find right now. But Marchionne doesn't get along with them too well. But it's a little off topic, the important part is that they want to move its just.... where exactly would it be is the real question.

**gameguy56** · May-15-13, 05:53 PM

Originally Posted by southen

google their current headquarters and let me know if you still think a bland bargain office park is something they're interested in... they may not like downtown but they will do something unique for their headquarters.

Maybe they'll buy up downtown Pontiac and rename it Fiat, MI.

**Gistok** · May-15-13, 05:57 PM

Originally Posted by iheartthed

I don't think that matters since they are reportedly considering New York.

Um... you and several others on this forum are confusing the words "PRIMARY LISTING"... with a HQ location... not the same...

http://www.investopedia.com/terms/p/primary-listing.asp

A new HQ would necessarily NOT be in NYC... but could be in Michigan. Marchionne has put down roots in SE Michigan, so the HQ could be here.

As for a downtown versus Suburban site... several folks familiar with the Chrysler HQ site have already stated that it is full. I tend to believe them over armchair speculation.

As for that Pontiac site... does the word UGLY sound familiar?? That is a hiddeous building that has an unflattering resemblence to an oversized Best Buy Store...

As for where they would go for an HQ site... I agree that downtown Detroit is a strong possiblity. I cannot for the life of me understand why they would pick a suburban site that is much less desireable than their Auburn Hills location. And if Auburn Hills is full, then a downtown site may be in the offing... IF they do decide to move.

**iheartthed** · May-15-13, 06:01 PM

Originally Posted by 1953

If Fiat has ever read anything on corporate strategy, they will want to be in the auto cluster in the upper Midwest, not in New York.

All of the European automakers have their American HQs on the East Coast...

**Richard** · May-15-13, 06:03 PM

They could make a commercial showing a fiat driving into the river and coming up on the Canada side to enter into that market.

**iheartthed** · May-15-13, 06:12 PM

Originally Posted by Gistok

Um... you and several others on this forum are confusing the words "PRIMARY LISTING"... with a HQ location... not the same...

http://www.investopedia.com/terms/p/primary-listing.asp

A new HQ would likely NOT be in NYC... but likely in Michigan. Marchionne has put down roots in SE Michigan, so the HQ would likely be here.

Sorry, misread it. I agree that a HQ move would likely be to Michigan, but it's not a foregone conclusion.

I could also speculate on some reasons why it wouldn't be in Michigan. The move would largely be in name only so they could easily locate it in New York. If the company would prefer to keep Fiat's identity separate from Chrysler -- which ain't a bad idea at all -- I could imagine the new American company not being located in Metro Detroit.

But I doubt Fiat leaves Italy. Marchionne is probably trying to negotiate a tax deal or something.

**Gistok** · May-15-13, 06:32 PM

iheartdetroit... I agree... but that may also be a reason why a move downtown versus closer to Auburn Hills is a possibility... to keep it seperate.

But yes... I think that Marchionne is using a USA location as leverage. There's the much higher corporate taxes in Italy, as well as the intrasigence of the Italian unions that are a source of contention...