Two sides of Globalization

General Motors is closing down a local call center that employed 237 people. Rough financial times for GMAC has resulted in them pulling the plug in the financing division, in the US and Canada– a total of over 930 jobs.
Fitch Ratings reported that auto loans are at least 60 days delinquent, were at a 10 year high in January.
A few months ago, operators in the Philippines began taking customer calls. Customers began to complain, that they could not understand (the Filipino Agents). A manager said GMAC is training customer service agents in India.

The official GMAC spokesman would not confirm the use of foreign call centers, playing the “we don’t disclose vendors, or where they are located” card.
Stream, a subsidiary of Symantec bailed out of the local & US market in 2004 & operates in India.

I worked at this call center for 4 years. (Not currently employed with them). GMAC had begun a systematic withdrawal- opening our center at a lower pay rate on the West coast, then one by one, shutting down union “FSO’s” Field Service Offices, one by one, essentially replacing them with lower paid, non-union workers. It was just a matter of time before that domino effect hit the place that was the replacement about 8 years after it was opened.
The domino effect has come full circle, and now they are getting the employment ax.
GMAC is “going global” to get a cheaper workforce, and find places to exploit. What bothered me most, was the shut downs and job losses went on silently and behind the scenes.

But GM and the other so-called Big 3 automakers, literally missed the boat on Hybrid cars, at the same time gas prices soared. The quality level of US made cars, has not compared with the likes of Toyota & Honda- or for whatever reason, the US carmakers tanked in recent years. They were left top heavy with gas guzzling SUV’s, and people just saying no to the $50 or more pricetag, to fill-er-up at the pump.

So while GM pulls the rug out from under US employees, and makes no comment in going “global”, they should not be surprised when car buyers do the same in turn- they are going global, and purchasing foreign cars. They have better consumer reports ratings, last longer, when taken care of properly, and have much better mpg efficiency.
What’s not to love? So GM bilking the US out of more jobs is just another reason to not buy their product.
Globalization goes 2 ways.