A new book by former car czar Steven Rattner is about to hit stores nationwide – titled “Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry” – but a draft manuscript has given an early glimpse at Detroit’s darkest days.
Set to hit shelves on October 14, the memoirs detail the weeks leading up to the 2009 bankruptcy filings of General Motors and Chrysler, as well as the automakers’ recoveries. The book promises several new insights, some of which have been revealed by the draft copy.
According to the book, GM strongly considered moving its headquarters from downtown Detroit to its Tech Center in Warren, Michigan. The idea was championed by former GM CEO Fritz Henderson and was supported by Rattner.
Henderson argued the move would not only put GM’s managers on-site, but that it would also help the company cut costs. However, many government officials didn’t view the move as highly as Henderson. “Are you out of your mind?” Rattner quoted White House aide Brian Deese as saying. “Think what it would do to Detroit.”
The White House conducted a study of the proposal, which concluded that real estate prices in Detroit would drop by double-digits – on top of the already weak market – if GM moved its headquarters.
Rattner’s book also revealed that the government approached Nissan and Renault CEO Carlos Ghosn about taking over as chief executive of GM. Citing his current responsibilities with Nissan and Renault, Ghosn turned down the job, but added he would be open to a partnership with GM. Ghosn pressed for an alliance with GM prior to the company’s bankruptcy.
Rattner’s book promises plenty of other insights, so make sure to pick up a copy next month.
References
1.’Rattner’s memoir…’ view
