GMAC – “Going downhill rapidly”

Pros

GMAC has managed to attain banking status. This may position it to survive in the auto finance world going forward.

Cons

The new management has brought in over 100 former employees of Bank of America and is in the process of migrating the corporate headquarters to Charlotte, NC. Legacy GMAC employees feel like their experience which formerly was an asset is now a liability. There is very little respect by the new management and employees for those who actually know how GMAC's business should work. The new employees seem to be set loose to create their own jobs which frequently overlap or conflict with the jobs of others.
There is no clearly articulated strategy of GMAC is going to thrive in the future.
As of October 2009, morale (at least in Detroit) was miserable.

Advice to Senior Management

A. Figure out what your strategy really is -- "being a bank" is not a strategy
B. Rein in the new ex-BofA employees
C. Evaluate if you really think that the legacy employees have nothing to offer.