Dealers welcome GM’s reinstatement

General-MotorsWhile once the American giant General Motors is still striving hard to reach at the cushy position which it was enjoying some time back, GM dealers have accepted the company's announcement of reinstating 600 dealers which were closed in the restructuring process last year.

GM suffered a $10.3 billion net loss in 2009, versus a $1.87 billion profit in 2008; however, its balance sheet today looks a lot better. But even before the company could celebrate on its higher February sales, the fact that it was overtaken by its American Counterpart Ford Motor Company after 12 years left it in dismay again.

While the dealers are expecting most of the reinstated dealers would be the Cadillac's but many of them are even of a view point that the company may have to open more than the expected 600 as customers have now started to come back.

Analysts believe that there was no business sense in closing the dealerships and now the company is realising the mistake and hence is looking at expanding its dealership network. However, there is still clarity on what parts or what brand GM will be focusing on under its reinstatement policy.