The light bulb switches on in the heads of GM execs

The Los Angeles Times reports that GM will reinstate 661 dealerships that it had planned to shutter.  The closure of underperforming dealerships was considered a key component of last year's hastily contrived, government-sponsored bankruptcy plan.  But, a strange thing happened along the way to financial redemption under the government's direction: the dealers slated for termination objected to their untimely demise. GM found itself besieged in arbitration by 1,160 jilted dealership owners.  With the guidance of the legal system, President Obama's hand-picked management team has experienced an epiphany; put simply, GM management has determined that it needs dealers in order to sell GM cars and trucks!  But, if the company adds back all of those ineffective dealerships, won't the company's costs skyrocket?  After all, the company earlier claimed that eliminating these dealerships was essential to GM's rebirth.  Well, apparently not: But...(Read Full Post)