Metro Detroit Auto Suppliers

**DetroitTitan** · February-05-10, 08:30 PM

Why are all the big auto supplier's corporate hqs in the suburbs? I don't think any suppliers have their offices Downtown. I'm not talking auto supplier plants, I don't think its sensible to think of that kind of development. Would they ever go to the city? Why are they located in the suburbs, or maybe the better question if they relocated there, why? [[eg. Lear, Visteon, Delphi)

lilpup · February-05-10, 08:45 PM

Give three good reasons why it would be beneficial for them to locate in the city.

**Hermod** · February-06-10, 06:18 AM

If their plants are in the suburbs, they want to be located near their plants. Also, when choosing a place to build a HQ, the executives always want it convenient to their homes.

A. "We need a corporate headquarters building"

B. "Let's rent some space in a tower downtoiwn so we can see the river"

A. "Are you crazy? I am not driving downtown every day"

C. "Here is some land near an I-75 exit in Oakland County"

A. "Build it there"

**CountrySquire** · February-06-10, 06:47 AM

My employer is located in Canton and it would be a dream come true if they re-located inside of Detroit. Doubful it will happen as they have been in Canton for 40 years; I'm not sure why that area was originally picked, perhaps a combination of appreciating property values and tax incentives.

**Hermod** · February-06-10, 06:53 AM

Originally Posted by CountrySquire

My employer is located in Canton and it would be a dream come true if they re-located inside of Detroit. Doubful it will happen as they have been in Canton for 40 years; I'm not sure why that area was originally picked, perhaps a combination of appreciating property values and tax incentives.

When they bought the land, the land was cheap and it was convenient to the road net.

**lalynch** · February-06-10, 05:22 PM

Many of the suppliers try to be close to the auto companies. That is why a bunch of them moved to Auburn Hills when Chrysler moved their headquarters.

Visteon was originally headquartered in Dearborn in a building owned by Ford Land. They choose Van Buren Township because it was the center of where their employees lived.

**Patrick** · February-06-10, 05:35 PM

Strictly from a geographic point, downtown Detroit would still work best since it is still the center of the region.

**Hermod** · February-06-10, 08:51 PM

Originally Posted by Patrick

Strictly from a geographic point, downtown Detroit would still work best since it is still the center of the region.

If you took the tri-county area and computed either a geographic center or a population density center, downtown Detroit would not be the center. Probably somewhere around 16 mile road and Rochester Road would be the geographic center.of the metro area.

**detlump** · February-10-10, 11:42 PM

Recall that the Big 3 started the move out of Detroit, due to high taxes, lack of large parcels of land. For example, GM built the Inland plant on Plymouth Road in Livonia [[the one that burned down in the 50s and was rebuilt). Now it is a Roush facility mostly I believe. Ford built the trans plant farther west in Livonia, and also there is [[was) Livonia Powertrain, and a bumper/frame plant on Eckels & Schoolcraft. It was only natural that suppliers would follow suit and be close to the customer.

It also doesn't make sense to have an auto supplier in a high-rise, just for a view of the river. Many aspects of the business involve big parts, such as vehicle bucks, test labs, design studios, etc. These things are not usually put 20 stories up in the air.

High rises are for service industries - finance, legal, accounting, more regular corporate type jobs. In Tommy Boy, where Zalinsky's HQ is a high rise, I laughed when it appeared there was a crash test lab at the top of the building! Would never happen.

**Blueidone** · February-10-10, 11:50 PM

Also, I'm sure that not having to pay city taxes [[not only income taxes, but property taxes, personal property taxes, etc) entered into the equation. Long befor the City of Detroit started giving tax abatements, the suburbs were giving them out to any company who would relocate in their city.

**ASR89** · February-11-10, 12:21 AM

Originally Posted by Hermod

If you took the tri-county area and computed either a geographic center or a population density center, downtown Detroit would not be the center. Probably somewhere around 16 mile road and Rochester Road would be the geographic center.of the metro area.

Going by the tri-county area, and looking at the following map, I got right below Lathrup Village in Southfield geographically, and a little west of Highland Park by population-density, as the centrepoints of the region.

http://www.cus.wayne.edu/content/Map...popdensity.pdf

**Patrick** · February-11-10, 01:30 AM

If you took the tri-county area and computed either a geographic center or a population density center, downtown Detroit would not be the center. Probably somewhere around 16 mile road and Rochester Road would be the geographic center.of the metro area.

True but you have to consider workers commuting from the far west regions such as Ann Arbor as well as Downriver as well as Ontario and St. Clair County.

**Russix** · February-11-10, 12:19 PM

A central urban district without efficient means to transport workers into and out of has no competive edge over an empty farm field next to a freeway.