A picture is worth a thousand words and we look to you, the all-knowing, witty commentariat of the Jalopnisphere to provide those words. Can you provide the caption to this photo that'll wow your peers and make the stone-faced Jalopnik editors crack a smile? Image Credit: Flickr

The automaker is under pressure to cut costs by June 1st or face bankruptcy. To that end, GM's being courted by Warren Mayor James Fouts, who, later this week, plans to tout his city's lack of an income tax (versus $6 million annually in property tax payments to the City of Detroit) as a big reason to relocate GM's HQ to the company's Technical Center in the Macomb County city.

A move also would leave the Motor City without a Big Three automaker, with Dearborn, MI the home to Ford Motor Company and Auburn Hills, MI the home to Chrysler, GM was the lone holdout still located within the boundaries of the city of Detroit. Without GM, do we still call Detroit the "Motor City?"

Yes, it's still the "Motor City" but the fact that GM's even looking to leave the city is just another example of how this once-proud industrial icon-of-a-city has gone from heroic "Arsenal of Democracy" to zero. [via Detroit News]

This city-within-a-city was actually commissioned by Henry Ford II as the world's largest private development at the time. As you can see from the promotional video to the left, the John Portman-designed complex began construction in 1971 and it was completed, more-or-less, in 1977. The centerpiece was a hotel that, at the time, was the tallest hotel in the world.

The assumption was the $500 million project would rejuvenate the downtown area and bring businesses back to the city. In that regard the Renaissance Center failed (it took a Super Bowl and a Major League All Star Game to actually provide the impetus for downtown rejuvenation) mostly because competition from suburban office complexes, but also because of failings in the original design.

The city-in-a-city building was originally designed and built with huge concrete berms housing the heating and air conditioning systems along the front of the complex, creating both a real, visual barricade from the city — but also a psychological barrier, destroying any ability for the building to connect with the city it was meant to revitalize. Additionally, there was poor access to the river and the basic design of the building is hideous maze of confusion. But that 72-story center tower sure does make for some spectacular views. In 1996 General Motors purchased the building and ordered a $500 million renovation which addressed the previous issues, adding beautiful river access, removing the terrible concrete berms and adding a handsome glass and steel foyer where they showcase their newest models.

Originally, the top two floors of the RenCen — the 71st and 72nd — housed North America's highest rotating restaurant, The Summit, but after a decade of closure, a series of renovations after GM took over ownership of the building seven years ago removed the spinning apparatus and transformed it into Coach Insignia. It's a short elevator ride up to the top but the views are pretty amazing. To the south (yes, the south) you get a clear view of Windsor, Canada, and when you look out upon Detroit, the metropolitan area seems to shrink far smaller than it's 3,913 square miles. Being at the top of the city lets you actually see the original French system of roads radiating from the hub at Woodward and Jefferson, not more than two blocks away. Peering around the giant blue GM badge plastered on the front gives you a sense of scale on just how deeply embedded this company is with the local economy. It looks down upon Detroit from a perch on high, even though lately, it has been made low.

After pondering all of this, we rediscover the mystery of the $8 Jack and Coke.

Top Photo Credit: eschipul / Flickr

Options now include seeking other methods of funding or actually selling off the RenCen though if a sale were to take place, GM would retain the headquarters on lease. Considering GM bought the whole place in May for $626 million and now is considering refinancing, this reminds us of our own investments these days: Buy high, sell low and the like. [DetNews]

According to the Detroit News, the city pension and Detroit Police and Fire Fund have over $8 billion in assets between them, and have been active in financing several key downtown development projects. GM wants to borrow $500 at what we would presume are very favorable interest rates to finance the Renaissance Center complex. Do they have to refi or sell? That's the unknown here: It could be that GM is simply using the "we'll sell the RenCen" threat to put political pressure on the pension funds to green-light the refi deal. Or it could be GM thinks the interest rates they'll see from the Detroit Police and Fire Fund will be better than whatever horrifyingly poor rate they're able to get from the capital markets right now.

What happens if the pension funds don't blink? GM says it would try to sell the center but lease its office space, so tenants and GM employees would likely see little change in day-to-day business. GM would get a chunk of cash to fund its operations, then make monthly rent payments to the new owners. And who would the new owners be? Who knows, but with the dollar where it is, we'll bet our Volt futures that they won't be American. [Detroit News]

The message the General's giving on their earnings is that the NorAm operational net losses were only $46 million, an amount Rick Wagoner said this morning live on CNBC was "essentially breaking even." OK, that's a total load of crap — especially considering the automaker has sold more cars globally during the first quarter than ever before. Given that, one would assume they'd have to find a way to actually sell some cars here in NorAm to make some money — instead of producing 192,000 less — or else have a gameplan to when they're going to do that via their ever-running turnaround effort. But although Phil LeBeau's only sort of buying that spin, the bigger story is the little jam-up he may have just caused on Jefferson Avenue downtown a few minutes ago. As you can see, us Detroiters love CNBC so much we're willing to risk getting smashed up in order to gawk at pundits on the street live in front of a camera. And that's why I always talk indoors — less risk of injury to my fellow Metro Detroiters. I'm just trying to do my part. – Ray Wert

GM's CEO Says North American Operations Can Be Profitable [CNBC.com]

Related:
The Official Car Pundit Drinking Game; No Way Of The Day: GM Records First Quarter...Profits?! [internal]

GM to hold noon Tigers rally at RenCen [Detroit News]

Related:
Rick And Carlos Have Dinner; General Motors, Renault-Nissan Arrange 90-Day Money Back Guarantee [internal]

The General's world headquarters, the Renaissance Center, is a phallic protuberance at the tip of the city of Detroit — a way for the city, home to the world's biggest automaker, to show the rest of the world that they're still the big swingin' dick of the industry, despite the blight and urban decay surrounding it and the global pressures now upon them. After it went from being a city-owned building to GM's world headquarters in 1996, in many ways it's come to symbolize much of the General's overall state of mind. It's a city inside a city, insulated from the world around it. Despite a $500 million renovation, it's a place easy to get lost in and when inside feels like you're always closed off to the world around you — much like GM's willingness to remain open to new ideas and strategies. The RenCen's also home...

...to the stunning Wintergarden — an ever-warm palm tree-filled terrarium where it seems like the sun's always shining and everything is rosy and peachy-keen — much like the General's sales and quarterly earning statements. The video above was produced by the Detroit Visitors and Conventions Bureau and we thought it'd be a nice way for everyone to take a step back and learn a little bit more about the building GM calls home. – Ray Wert

Related:
Rick And Carlos Have Dinner; General Motors, Renault-Nissan Arrange 90-Day Money Back Guarantee; Taste The Excitement! Jerry York's Resignation Is Kirk Kerkorian's First Step In All-Out War Against The General? [internal]