More GM employees moving to HQ from NY

[Bham1982]

Please realize that the change in the median sales price is not a good indicator of how much housing prices have gone up or down in an area. People use it because it is easy to calculate, not because it is statistically sound. If you get a shift in the composition of sales [[in this case, a reduction in the percentage of sales that are distressed) you can get a big change in the median price without any change in the price of any actual house.

This is all true, and much of the Metro Detroit housing price increase is due to a shift in the composition of sales from distressed to non-distressed.

That said, Case-Schiller does account for this [[to some extent), by separating overall sales from distressed sales, and by reporting on a seasonally adjusted basis.

[Spartan]

Perhaps its just the cynic in me, but it's been my experience that announcing a consolidation and moving jobs to a far flung location is a PR move to downplay a layoff. GM is claiming those 70 "jobs" are moving from NY to Detroit, however, this is a bit of a dead give away as to what is really happening...


70 jobs are leaving NYC, I'd be interested to see the follow up on if they ever show up in Detroit. I'd bet money no more than a handful of key players actually relocated.

It will be interesting to see if all 70 are replaced, but they're not going to drop the entire Treasury department...

[DetroitPlanner]

Bottom line. 70 new, well paying jobs downtown. These folks will buy stuff and consume lunches. Not too shabby.

[bailey]

It will be interesting to see if all 70 are replaced, but they're not going to drop the entire Treasury department...

I don't believe that is the entire treasury department, it's the NY office.

[Spartan]

I don't believe that is the entire treasury department, it's the NY office.

I've seen nothing to indicate otherwise. The articles about this say that GM is moving its treasury office to the Detroit HQ, not "part of..." "some of..." "70 members of...", etc.

[michimoby]

Related news: 70 people in GM's Treasury Office simultaneously contacted corporate recruiters to avoid a move to Detroit. Moving from New York to Detroit would be like a death sentence to everyone I know in NYC, unless they have very strong family ties to the area.

A friend of mine from grad school made the GM Treasury move a few years ago....although [[admittedly) his fiancee was still completing her PhD at Michigan and she had ties to the area.

There will be attrition, no doubt. On the other hand, the same would occur in the case of a reverse move.

[mwilbert]

Sure, but the 40% number in the article was referencing median prices, not a Case-Shiller or OFHEO number. The comparable Case-Shiller number is around 10%.

[Cliffy]

Related news: 70 people in GM's Treasury Office simultaneously contacted corporate recruiters to avoid a move to Detroit. Moving from New York to Detroit would be like a death sentence to everyone I know in NYC, unless they have very strong family ties to the area.

Yeah but if the same thing happened to my office, I would probably be looking for a job to stay in the area because I have no interest in playing the NYC apartment game and living in a concrete jungle.

[michimoby]

Thriving concrete jungle vs. poverty and crime stricken jungle that is current Detroit? And if you live in a suburb, well, NYC has Connecticut, Westchester County and Long Island. I welcome the support of Detroit, but let's not get crazy here. I guarantee most of those 70 will take a severance package and be looking for a new employer in New York.

I don't think he was criticizing NYC at all, Bryce. Most people my age I know in Detroit are happy being there, have solid jobs, and wouldn't want to leave unless the right opportunity arose. However, the big difference between me and them: they're mostly all from the area originally. I'm not.

Having recently made the move to Brooklyn from Detroit, I can say that I'm much happier in New York. But that's my experience alone, and it's not universally mandated that everyone feels the same about such a move.

However, I'm aligning with you peripherally: my guess is that a large chunk of those employees choose to stay in NYC unless they're originally from Michigan and/or have a compelling reason to come to Detroit. The finance industry, albeit not nearly as massive as it was six years ago, is still fairly robust and would scoop up GM employees in a heartbeat.

[Cliffy]

I don't think he was criticizing NYC at all, Bryce. Most people my age I know in Detroit are happy being there, have solid jobs, and wouldn't want to leave unless the right opportunity arose. However, the big difference between me and them: they're mostly all from the area originally. I'm not.

Having recently made the move to Brooklyn from Detroit, I can say that I'm much happier in New York. But that's my experience alone, and it's not universally mandated that everyone feels the same about such a move.

However, I'm aligning with you peripherally: my guess is that a large chunk of those employees choose to stay in NYC unless they're originally from Michigan and/or have a compelling reason to come to Detroit. The finance industry, albeit not nearly as massive as it was six years ago, is still fairly robust and would scoop up GM employees in a heartbeat.

Exactly. I have family and friends here and a good paying job. I have no interest in NYC. I'm not saying anything is wrong with NYC but its not for everyone just like the Detroit area is not for everyone. To each their own.

[fjw718]

Wow! I guess thats about it for the GM Building in New York City.

Growing up in NYC and Detroit i remember the GM Building on 5th avenue was such a cool place to visit. I could go to FAO Schwartz and see all the newest models and concept cars in the lobby.

But that real estate was just TOO expensive - probably the most expensive in GM's portfolio. I think it was sold 20 years ago and trump had a hand in it.

FAO Schwartz is still there, as is the flagship 24 hour apple store but other than that the corporate tenants are Estee Lauder, Law Firms and small Capital Management funds and Broker Dealers.

[Det_ard]

GM's NYC Treasury operation has always been a place for rising fast-track managers and execs to rotate through on their way to their next promotion. Just because they're in NY and in finance doesn't mean they're wedded to NY and finance. They may be wedded to GM, and they'll go to Detroit or Shanghai or where ever GM sends them to next.