The first approach should involve a co-developed business realignment plan involving the associated unions and GM's labor relations boards. The old tier of employees could be unaffected by this new contract for new GM blue-collar employees. Without this type of restructuring, the automaker will not be able to be a profitable entity over the long term. A fundamental change is needed to increase the company's competitiveness in the new global marketplace. A transformation of this type would eliminate thousands of high-wage union jobs.
Negotiation is the preferred avenue for all parties involved.
After resisting efforts to consolidate and streamline its dealer base, GM is re-evaluating ways of increasing profits through its distribution channels. Instead of being the point of sale, dealers may evolve to become vehicle delivery and maintenance organizations. With millions of dollars invested in each GM dealership, dealer owners are sure to put up legal roadblocks and lobby Washington hard on this fundamental industry shift. Dealer consolidation is needed and more corporate profits can be realized from direct sales to consumers, instead of through traditional dealerships. During the past few years, GM's competitors have moved swiftly and gobbled up prime properties in the global automotive market.