Adient plc will no longer move its headquarters to downtown Detroit.
The spinoff of Glendale, Wis.-based Johnson Controls Inc. confirmed it has informed Detroit Mayor Mike Duggan of its decision to scrap its move into the Marquette Building next to Cobo Center. Adient will remain in its current Plymouth, Mich., headquarters, a spokeswoman said June 18.
"This is in no way a reflection on the city of Detroit or its outstanding revitalization efforts, but 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. "We will work with the mayor's office and other partners to make sure the Marquette Building goes to an owner who also appreciates the historic significance of the building."
Adient had planned to spend nearly $100 million to relocate its main office from Plymouth to the Marquette Building. The news comes a week after Bruce McDonald, its chairman and CEO, retired and former General Motors Co. CEO Frederick Henderson was named as interim CEO for the auto supplier.
The company has struggled to maintain consistent profitability since its spinoff, reporting a $1.5 billion loss in 2016 before recovering to a net profit of $877 million last year.
But finances have struggled again in 2018, being dragged down by its money-losing seat structures and mechanisms division with its $3.3 billion in debt. In the second fiscal quarter of 2018, Adient reported a net loss of $168 million on sales of $4.6 billion.
The 164,000-square-foot Marquette Building is vacant and under renovation above the first floor, which is wrapped with signage saying, "Hello, Detroit. We can't wait to be your neighbor."
A fire last month on the ninth floor did not affect Adient's plans for the 111-year-old structure, Dodero said at the time.
It would have been home to about 500 employees, including more than 100 new hires in such departments as legal, accounting, audit and treasury. It received a $2 million 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 million in 2014 and sold it to Adient in 2016 for $16.9 million. The company also paid about $19.23 million combined for a parking deck in November 2016 and a surface parking lot in November 2017, according to city property records.