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GMAC might relocate HQ to Charlotte

atlrvr

By atlrvr
in Charlotte

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atlrvr Metropolitan Area

atlrvr

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Lets also not forget that GMAC is a big catch, regardless of their sitation....they were a Fortune 100 company last year, with only BofA, Wachovia, and Lowe's higher on that list locally.

100,000 sq. ft. is about 300-400 jobs, and I assume that if they survive, they would grow over time.

Also, for our financial sector to grow, it will be better to have multiple firms. Before, if you only have a choice of two companies, your options are pretty limited if things don't work out at one...with 4 (BofA, Wells, MS, and GMAC) its a larger employer base which should help recruit more talent.

Also, Chamber people (yes, I know they always have a positive spin) have stated that they've been in contact with investment banking firms interested in opening offices in Charlotte to pick up Wachovia talent.

I think the short-term (next 2 years) will be very painful, but this probably will benefit Charlotte long term in regards to attracting talent and businesses. Consider that when GMAC and MS open, they will probably be followed by new offices of their existing outside corporate council law firms, which likely don't have a presence here yet.

Though diversification should be a goal, diversification within the financial sector is also important. I'm still bitter that Raleigh was able to pick up significant back-office operations for several mutual fund companies as that is something that Charlotte lacks (except Vanguard). It would also be nice to persue some asset management firms to the area.

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monsoon Gigalopolis

monsoon

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GMAC is being propped up as a banking holding company so it can keep making car loans. This move is saving about 4000 of GM's 6000 dealerships who, BTW, are all big contributers to the political system. Given this, and the current stock value of this enterprise, I don't think we are talking about anything even close to a fortune 100 company.

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peaceloveunderstanding Town

peaceloveunderstanding

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Though diversification should be a goal, diversification within the financial sector is also important. I'm still bitter that Raleigh was able to pick up significant back-office operations for several mutual fund companies as that is something that Charlotte lacks (except Vanguard). It would also be nice to persue some asset management firms to the area.
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Commoner Whistle-Stop

Commoner

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Lets also not forget that GMAC is a big catch, regardless of their sitation....they were a Fortune 100 company last year, with only BofA, Wachovia, and Lowe's higher on that list locally.

100,000 sq. ft. is about 300-400 jobs, and I assume that if they survive, they would grow over time.

Also, for our financial sector to grow, it will be better to have multiple firms. Before, if you only have a choice of two companies, your options are pretty limited if things don't work out at one...with 4 (BofA, Wells, MS, and GMAC) its a larger employer base which should help recruit more talent.

Also, Chamber people (yes, I know they always have a positive spin) have stated that they've been in contact with investment banking firms interested in opening offices in Charlotte to pick up Wachovia talent.

I think the short-term (next 2 years) will be very painful, but this probably will benefit Charlotte long term in regards to attracting talent and businesses. Consider that when GMAC and MS open, they will probably be followed by new offices of their existing outside corporate council law firms, which likely don't have a presence here yet.

Though diversification should be a goal, diversification within the financial sector is also important. I'm still bitter that Raleigh was able to pick up significant back-office operations for several mutual fund companies as that is something that Charlotte lacks (except Vanguard). It would also be nice to persue some asset management firms to the area.

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spagett Crossroads

spagett

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I'm almost 99% certain G M A C will be moving their HQ to Charlotte, and they will not be locating in Ballantyne. They will be moving Uptown, taking some Wachovia space. More than likely they'll be using some of that new tower.

Ballantyne/Lancaster Co. is for call centers and failing mortgage companies, not bank HQ's.

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rockhilljames Burg

rockhilljames

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If GMAC moves to Charlotte there will be many factors involved in choosing a location for the HQ. I promise you that shareholders and the board won't object to a move to Ballantyne. If there is space available uptown at an attractive rate I can see them choosing to locate there. To suggest, however, as you do, that they won't locate in Ballantyne because it's for "call centers and failing mortgage companies" is a bit ridiculous.

I assure you that Goodrich doesn't care that they're surrounded by department store HQ and an art school.

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ssh214 Whistle-Stop

ssh214

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Hey everyone, I am new to UP, this is my first post. Doesn't everyone think it might be a little peculiar for GMAC to want to want to move to Charlotte. Yeah I understand that prior to the economic downturn Charlotte would have been really attractive and no one would have questioned GMAC wanting to make a move to a prominent new jewel of a tower in Charlotte. But now with the trouble facing both the city and more specifically the company itself, doesn't anyone think they are planning to move here because they now they face almost certain doom. This is just simply a thought.

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rockhilljames Burg

rockhilljames

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If they are facing certain doom, then why move? Just accept the inevitable and pucker up.

Charlotte makes sense because the cost of doing business here is lower, and there is a wealth of talented financial services people (bigger job pool of trained workers), moreso now that the banks are laying people off. Plus there are the other intangibles like the climate and relatively high quality of life.

Based on our current market conditions I'd say we're an attractive location for any financial services company looking to relocate.

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monsoon Gigalopolis

monsoon

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I still don't understand why GMAC needs to move. Their primary business is going to be financing GM vehicles. I am not sure why they would pack their bags and move to NC when right now they are in the same city as GM. From a business perspective it doesn't make sense. This notion that banks are going start flocking to NC because it is full of out of work bankers, is a bit of a stretch. It's not like these finance people would not be willing to move to Detroit in a second if they start advertising for jobs.

I still have not seen anything about this beyond the Observer and its parrots and even they don't cite any sources beyond others in Charlotte. From a national perspective, I think Charlotte's reputation as a "banking center" has been destroyed given that one of it's banks self destructed and the behavior of the other is being called "outrageous" by the President of the USA. It doesn't inspire confidence this is the place to start a new bank.

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Commoner Whistle-Stop

Commoner

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I still don't understand why GMAC needs to move. Their primary business is going to be financing GM vehicles. I am not sure why they would pack their bags and move to NC when right now they are in the same city as GM. From a business perspective it doesn't make sense. This notion that banks are going start flocking to NC because it is full of out of work bankers, is a bit of a stretch. It's not like these finance people would not be willing to move to Detroit in a second if they start advertising for jobs.

I still have not seen anything about this beyond the Observer and its parrots and even they don't cite any sources beyond others in Charlotte. From a national perspective, I think Charlotte's reputation as a "banking center" has been destroyed given that one of it's banks self destructed and the behavior of the other is being called "outrageous" by the President of the USA. It doesn't inspire confidence this is the place to start a new bank.

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troyboytn Unincorporated Area

troyboytn

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As for a move by Morgan Stanley to set up "commercial" banking operations in Charlotte....I believe that certainly could be plausable. On the other hand, I do not believe ther is a chance in hell that the parent company of GMAC (General Motors) which holds a 60% stake would ok a move anywhere, including Charlotte, concidering the close ties between the two. Its not happening as long as GM owns controlling interest. Sorry!

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monsoon Gigalopolis

monsoon

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I think GMAC's election to BHC (or FHC) status means that they don't anticipate their primary business to be financing GM vehicles, going forward. GMAC has also purchased other consumer finance businesses that have nothing to do with auto financing. They're also not inextricably linked to GM.
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atlrvr Metropolitan Area

atlrvr

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As for a move by Morgan Stanley to set up "commercial" banking operations in Charlotte....I believe that certainly could be plausable. On the other hand, I do not believe ther is a chance in hell that the parent company of GMAC (General Motors) which holds a 60% stake would ok a move anywhere, including Charlotte, concidering the close ties between the two. Its not happening as long as GM owns controlling interest. Sorry!
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Charlotte_native City

Charlotte_native

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As for the notion that out of work Charlotte-based bankers wouldn't move to Detroit, I don't think that they actually would. I'm not employed by the banks directly, but my ability to provide for my family, right now, is directly linked to the banks. I would change industries before moving to Detroit. I just don't see any upside.
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