By Nora Eckert
DETROIT (Reuters) -General Motors in 2025 will move its headquarters deeper into downtown Detroit, the U.S. automaker said on Monday, after spending more than 20 years in its riverfront home at the Renaissance Center.
GM will place its global headquarters a few blocks away from the so-called RenCen, in a sleek new high-rise building called Hudson (NYSE:HUD)'s, which will be the second-tallest skyscraper in Detroit.
"It's important to all of us at GM that we continue to call Detroit our home for a long time to come," CEO Mary Barra said at a press conference. The new headquarters will provide collaborative areas for employees, space to host events as well as display vehicles, she said.
GM remains the only member of the Detroit Three automakers to have its headquarters in the Motor City. Ford Motor (NYSE:F)'s home base is nearby in Dearborn, Michigan, and Chrysler parent Stellantis (NYSE:STLA) has its main North American office in Auburn Hills, Michigan, about 30 miles (48 km) from Detroit.
Ford is in the process of rehabilitating Michigan Central Station in downtown Detroit - the city's historic but dilapidated former rail station - to be a large hub for tech workers and software engineers.
The GM headquarters – with its glowing logo atop one of the towers – has become an important part of Detroit's skyline since the automaker purchased the property in 1996. The move to this location was "a milestone that helped spark a downtown renaissance," the company says on its website.
GM will partner with real estate firm Bedrock, which is led by billionaire Dan Gilbert, and with the City of Detroit and Wayne County, to study how to redevelop GM's Renaissance Center headquarters over the next year, Barra said.
GM has entered into an initial 15-year, multi-level lease for the top office floors as well as showcase space at the street level, the automaker said in a statement. Financial terms between GM and Bedrock were not disclosed.
GM President Mark Reuss and a company spokesperson declined to provide details of the difference in cost and square footage at the new building compared with the current headquarters.
When the automaker allowed remote work during the pandemic, Barra fielded questions about whether GM would remain on the riverfront.
The company has since instituted a policy where workers are asked to come to the office three days per week.
GM also has a technical center in Warren, Michigan, that is the home base for many of its workers.