Auto seating supplier Adient has canceled its plans to move its global headquarters and hundreds of jobs to Detroit.
The company has informed Detroit Mayor Mike Duggan of its decision to scrap its relocation plans, according to an announcement Monday. Adient bought a downtown facility in 2016 for its 500 executive and leadership employees, including 100 proposed new jobs for the city.
In a statement, the company said the decision isn't a reflection on Detroit or "its outstanding revitalization efforts." Adient planned to spend nearly $100 million to relocate its main office in Plymouth, Michigan, to Detroit.
The announcement comes a week after former General Motors Co. CEO Frederick Henderson took over as Adient's interim CEO.
Adient has struggled to maintain consistent profitability since it spun off from Johnson Controls two years ago. The company reported a $1.5 billion loss in 2016 before recovering to a net income of $877 million in 2017. Adient also reported a net loss of $168 million in the second fiscal quarter of this year.
"I understand the business reasons for their decision and I hope Adient has great success in resolving their current situation," Duggan said. The mayor asked the company to put the downtown building back on the market as soon as possible for other companies to consider using it as a headquarters.