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GMAC might relocate HQ to Charlotte

atlrvr

By atlrvr
in Charlotte

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hokiehigh Whistle-Stop

hokiehigh

Posted
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Maybe there is a chance they will relocate the HQ later. Detroit really doesn't need another blow right now. I bet it is hard to get people to relocate there eventhough you can buy a house for like 8k. I am in Chicago and everyone I meet from MI says they had to get out of there. Too bad for the state b/c supposedly western MI is really nice.

If GMAC needs more office space lets hope they choose Uptown!

Anyway, Charlotte really needed some good news! Let's hope Morgan Stanley expands in Charlotte too..........

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monsoon Gigalopolis

monsoon

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^Maybe, maybe not. I made the argument above why they need to keep a large presence near the auto makers in Detroit.

On the other hand, it might be going up in smoke too. We are talking about another institution whose primary business is loaning money on GM automobiles (a car company in great trouble) and which currently can't exist without considerable taxpayer support. There was also an article posted this past week that said the CEO of this company drew something like $11.6M compensation last year for a company that nearly collapsed.

I suppose more interesting if an individual works for BofA or Wellscovia, should they take their chances and bail for a GMAC job or stay put?

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monsoon Gigalopolis

monsoon

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So the state of NC is giving GMAC $4.49M so they will put 200 jobs in Charlotte. Bah. This doesn't sound like anything more than some more extortion by yet another finance company go get public money given that it sounds as if GMAC planned to put these jobs in Detroit otherwise. I think this pretty much sums up GMAC's plan for Charlotte. No HQ. .....and no jobs unless a lot of money is handed over to them. Well.... I told you guys so.

I guess it is a better deal than the $200M they paid Google or the extreme amount they paid Dell.

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HopHead City

HopHead

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Well, it's 200 more jobs than were here yesterday... Though, I think Perdue made it sound like several hundred when the announcement first came out. When I hear "hundreds", I usually think like 500-600. Interesting that the state gave $4.5 million for those jobs. Now, if Morgan Stanley is on the radar too like is often speculated, you can bet they'll get at least that or more to open a retail banking center in Charlotte.

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rockhilljames Burg

rockhilljames

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Monsoon, you're just a ray of sunshine. 4.4 million for 200 jobs works about to about $22 thousand a job. I'm betting that the tax revenues from these jobs and their economic impact will be made up in short order. I'm not in favor of all corporate incentives (for example, I thought Alabama got RAPED by Mercedes) but in this case that's a relatively minor concession for a rather substantial move.

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JayGee Hamlet

JayGee

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Monsoon, you're just a ray of sunshine. 4.4 million for 200 jobs works about to about $22 thousand a job. I'm betting that the tax revenues from these jobs and their economic impact will be made up in short order. I'm not in favor of all corporate incentives (for example, I thought Alabama got RAPED by Mercedes) but in this case that's a relatively minor concession for a rather substantial move.
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atlrvr Metropolitan Area

atlrvr

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The money is over 9 years, so it is less than $2,500/year per employee.....far better than other corporate handouts in recent history.

Again, I will stand by my assertation that Charlotte will be the corporate HQ in the near future. Regardless, having the CEO here as well as all the new jobs related to their transition to a bank holding company (compliance, accounting, finance, legal) are based here, if it walks like a duck, quack quack...

Good for Charlotte, and I can almost guarantee that the 200 minimum jobs they must fill to qualify for the incentives will be easily doubled in terms of actual hiring.

Whether or not GMAC ultimately makes it (and I have confidence in the federal gov. that they will ensure survival) can be debated, but getting the layed-off back to work in this city in the near term should be considered a win, as these jobs could of gone anywhere.

Booms and busts are always extrapolated by the media, so I'll take as much positive news as I can, if the media can spin it enough to change public sentiment about the economy.

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monsoon Gigalopolis

monsoon

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If the state is going to invest in jobs then it should be in industry that has a future. The finance industry is dead and won't resemble anything like it has looked over the past couple of decades. The people are infuriated at the asses running these, now taxpayer financed, debacles and they will keep voting in people who will do something about if the current set of politicians don't or won't. My prediction is these "too big to fail" companies are going to eventually busted up.

Charlotte can keep trying to bet on an industry that has done nothing but create a false wealth and I would say that in the long term it won't be good for the city. Regardless, this GMAC deal certainly isn't anything what was being suggested above and they had to pay them to get them even to consider Charlotte. I still contend they will continue to be primarily based in Detroit as long as there is a car industry there.

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hokiehigh Whistle-Stop

hokiehigh

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True. Comerica moved from Detroit to Dallas last year. It has to be demoralizing if another financial institution left for a sunbelt city in a short period of time. However, I believe they will eventually move the HQ down in the future. I don't think Detroit is the best city to be in right now.

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rockhilljames Burg

rockhilljames

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Given their ties to Detroit and the length of time they've been there I'm betting that any HQ move announcement wouldn't be made until they believe the transformation to a holding company is complete. I wonder if at that time a name change will be forthcoming, GMAC has brand recognition but has too many associations with the auto industry and one automaker in particular.

NationsBank is available.

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JayGee Hamlet

JayGee

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Given their ties to Detroit and the length of time they've been there I'm betting that any HQ move announcement wouldn't be made until they believe the transformation to a holding company is complete. I wonder if at that time a name change will be forthcoming, GMAC has brand recognition but has too many associations with the auto industry and one automaker in particular.

NationsBank is available.

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JayGee Hamlet

JayGee

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Why is it this is considered a perception? GMAC originated 30% of all of GM's car loans since the first of the year. Without this business they are done. Why in the world would they change their name and tell the auto industry to *iss off by pulling 1000s out of Detroit. It's not going to happen. It doesn't make any business sense.

The conversion to a bank holding company was nothing more than a ploy to get TARP money for this company which otherwise would be history now. They had to stop originating loans until they got this bailout. They are still in pretty bad trouble as they have to come up with significant payments by the middle of the year. The car dealers who are mostly big contributors to the GOP started crying "what about us" and they pushed through this change before the Bush Administration left office. It is estimated this saved 60% of GM dealers. (for now)

I would not make the mistake of thinking this his some kind of new national retail bank. I also would not make the mistake of thinking that 200 jobs "over 5 years" amounts to anything more than not much of nothing. I suppose it is easy to float the "idea" this is a HQ move to get the state to wake up and toss them some money, but as keep saying, the devil is in the details and the details are not that significant.

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Charlotte_native City

Charlotte_native

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It is curious that GMAC was very quick to post a denial of moving its HQ to Charlotte on its corporate website, but there is no mention at all of this deal. Either they are afraid of pissing off Detroit/Michigan, embarrassed to be taking more tax money, or they don't consider this to be that significant. Your pick.
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monsoon Gigalopolis

monsoon

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Public relations. Carefully selected words to prevent burning bridges and creating unnecessary bad press if you can prevent it. As mentioned before in this thread, just like Lowe's leaving Wilkesboro for Mooresville. These guys never come out and say we are about to pack up shop and move to greener pastures. It also doesn't sound like they are abandoning Detroit so, again, no need to say or indicate that they are.
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