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View Full Version : GMAC closing US call centers



Paris
02-29-2008, 03:13 AM
My friend works for the call center in Eugene, Oregon. She figured she had until fall before she would be laid off, but it looks like April 30th is the last day of business for their location.

Guess where the jobs are going? Pakistan. I guess those $10 an hour jobs were just too expensive for a mortgage lender in the US.

Link (http://www.680news.com/news/business/article.jsp?content=b0220140A)

Melonie
02-29-2008, 04:26 AM
The larger reason for this move is that the subprime / ARM mortgage delinquencies have now trickled down to auto loans. GMAC, which was primarily the self-finance branch for GM automobiles, wrote a whole lot of 'subprime' auto loans - and is now taking huge losses as many car owners find they can't afford to keep making car payments and buy food / gasoline, pay taxes etc. at the same time.

However, GM sold off 51% of GMAC to Cerberus which is a private equity company ... and they don't like taking losses ! From the viewpoint of the new owners, when minimum wage laws and other mandated benefits force US companies to pay $10 an hour for unskilled labor, and that same unskilled job can be performed somewhere else for $1 an hour, what justification is there to keep 'wasting money' paying Americans ?

Deogol
02-29-2008, 07:08 AM
... when minimum wage laws and other mandated benefits force US companies to pay $10 an hour for unskilled labor, and that same unskilled job can be performed somewhere else for $1 an hour, what justification is there to keep 'wasting money' paying Americans ?


With the coming recession I think we are about to find out...

Richard_Head
02-29-2008, 07:36 AM
You've got to love those "Fair" trade pacts.