Plymouth, Michigan – Car seat maker Adient will keep its headquarters in Plymouth following the retirement of CEO Bruce McDonald.
This is despite earlier plans to move to downtown Detroit, the company said. It was planning to move into the Marquette Building, next to Cobo Center.
‘This is an internal decision by Adient that it can no longer fund the project in a way that will properly restore this historic gem to the city’s landscape,’ Mary Kay Dodero said in an email to Crain’s Detroit Business.
Adient had planned to spend nearly $100 m to relocate its main office from Plymouth to the Marquette Building. The news comes after Bruce McDonald, CEO, retired. Frederick Henderson, former General Motors CEO, takes on the interim role.
The company has struggled to maintain consistent profitability since its spinoff, reporting a $1.5 bn loss in 2016 before recovering to a net profit of $877 m last year. It made a $216m loss in the first quarter of 2018.
But finances have struggled again in 2018. The company’s seat structures and mechanisms divisions dragged performance down. In the second fiscal quarter of 2018, Adient reported a net loss of $168 m on sales of $4.6 bn.
The 164,000-square-foot (15,000 m2) Marquette Building would have been home to about 500 employees, including more than 100 new hires in such departments as legal, accounting, audit and treasury. The move would have received a $2 m state incentive. The city also offered a property tax incentive, according to MEDC.
Adient is tax domiciled in Dublin, Ireland, and is estimated to be worth $17 billion.
Mexican businessman Carlos Slim Helu bought the Marquette Building for $5.8 m in 2014. He sold it to Adient in 2016 for $16.9 m.
The company also paid about $19.23 m combined for a parking deck in November 2016 and a surface parking lot in November 2017, according to city property records.
This story first appeared in Crain’s Detroit Business.