After GM and Chrysler greatly reduced the size of their dealer networks following their bankruptcies, legislators required an appeals process for those terminated dealers, and after arbitration, it turns out that GM is going to be reinstating more than one half of the 1,600 dealers who filed appeals.
The cost-cutting measure became a topic of much debate, but was seen as necessary by GM in order to keep their remaining dealers profitable by keeping their volume up. Settlements resulting from the process could be either in the form of reinstatement or some kind of payment arrangement, but one thing is certain; avoiding arbitration will enable GM to better plan vehicle production logistics in the coming months and perhaps year or two.
-By: Stephen Calogera
Source: Detroit News