General Motors (GM) held a press conference Monday afternoon announcing that the company will move its headquarters from the Renaissance Center to the new Hudson's development, which will be the second tallest tower in Detroit, Michigan. The press conference was led by CEO Mary Barra, who recently spoke to Yahoo Finance about the transition to EVs.

Yahoo Finance Reporter Pras Subramanian breaks down the latest development for GM and what it could mean for the company moving forward.

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This post was written by Nicholas Jacobino

Video Transcript

JOSH LIPTON: General Motors holding a news conference right now and announcing, it's moving its headquarters. Yahoo Finance's Pras Subramanian is here with the very latest prize.

PRAS SUBRAMANIAN: It's official it's moving, GM moving down the street from rent center to a new development called Hudson's building. It's a Dan Gilbert of Rocket Mortgage Fame has a bunch of developments in the Detroit area. I think over 40 now. This is the biggest one about a one point.

JOSH LIPTON: It's been on a buying spree.

PRAS SUBRAMANIAN: I mean, he's really into redeveloping Detroit. It's $1.4 billion project. So GM will move from the rent center. Its long time home that massive complex by the river to the new facility here. It's going to have the second tallest tower in Detroit behind only the rent center. They're going to be there in 2025. GM says that they'll still own, I think the rent center or that space. And they're going to try to redevelop that in another manner with Dan Gilbert. But so far just a new HQ for GM as it enters its new phase of the company, going into the 21st century.

JULIE HYMAN: And it's interesting that they have still decided, though, to stay in Detroit. They're the only major automaker left. That's got its headquarters in Detroit. They have about 5,000 people at that headquarters downtown. So it's interesting that it's almost as though, they're partnering with Gilbert to still reinvest in the city.

PRAS SUBRAMANIAN: Yeah. The connection to the Motor City still a profoundly important one for GM, the history there for the company. In Flint, Michigan is one of its biggest towns and they have abandoned that area. Now Warren, Michigan is our big Technology Center. You mentioned Ford is in Dearborn. Stellantis is out in the suburbs there, not really much of a presence in Detroit. So this is the only Motor City type company. It's still there. So yeah, working with Dan Gilbert obviously he's putting his money where his mouth is there with this development. And Detroit has really come up a lot in the last few years. When I've been there before a few times, it's changed dramatically.

JULIE HYMAN: Yeah. If you look at some of the like climate change estimates, Detroit is supposed to be one of the good places to be as the climate worsens.

PRAS SUBRAMANIAN: Or warms up. Yeah, exactly. I'm not a scientist. But I have read that. Thanks so much Pras. Appreciate it.