Detroit has long been the heart of America's automotive industry, but 2009 has been a major period of upheaval for the city, with further shocks expected to come - including the possibility that General Motors will move its corporate headquarters out of Detroit downtown area and into a neighbouring city.

Moving away from Detroit could make sense for a newly restructured GM, especially considering that a bankruptcy proceeding appears to be all but inevitable at this point and relocating the new company could do much for its public image.

One of the new sites being proposed for the GM corporate headquarters is in Warren, Michigan, which neighbours Detroit. Speaking with The Detroit News, the mayor of Warren, Jim Fouts, has revealed that his municipality is planning to offer GM a number of financial incentives to relocate there. These will include significant tax breaks for construction of new offices, as well as lower overall income taxes and reduced crime.

Whether or not GM accepts the offer is anyone's guess, but considering that it already has a bustling development unit in the form of the Warren Technical Center, the new deal could shape up to be one of the company’s most viable options.