GM Hopes For Dealer Revival

Hundreds of General Motors franchisees thrown out last year could see their franchise restored as an arbitration process starts this month. Ed Whitacre, interim CEO, also predicts a return to profitability for the first time in 6 years.

Mr Whitacre said the company had a ’pretty arbitrary cut-off point’  for shedding dealers, and that it probably made mistakes in getting rid of some of them.  Adelaide Now

No doubt there will be a ‘substantial’ number of optimistic dealers wondering if they were one of GM’s 2009 mistakes.

When the franchises were revoked last summer, GM officials said dealers were judged on whether they met sales goals, customer service scores, the condition of their buildings and other criteria.

A GM return to profitability after six years is a surprising suggestion after sales plunged 30 per cent in 2009.