More Cadillacs for reinstated dealers? Hmmm

Peter Brown is publisher and editorial director of Automotive News.
General Motors is increasing production of the Cadillac SRX crossover later this year.


Well, because GM was forced to take back a bunch of previously fired Cadillac dealers, the company needs more vehicles for them to sell.


In bankruptcy, GM argued that all those dealers cost the company money. The dealers had to die so GM could live. In response, the dealers argued that they increased GM's sales.

Now GM has to crank up production -- and presumably profits -- in part because it has reinstated several hundred of the fired dealers. The new SRX is a pretty hot vehicle already.

History is proving that fired dealers were right.

By the way, GM CEO Ed Whitacre wasn't running the company when his predecessor, Fritz Henderson, testified that GM could save billions by whacking dealers.

Whitacre has believed that firing dealers would reduce sales. That's why his regime started reinstating dealers in large numbers even before the congressionally mandated arbitration process started.

Whitacre got this one right.