Plans are afoot for Detroit's Three to cut their ranks by thousands more than announced just a year ago. GM recently announced plans to offer buyouts to all 74,000 of its hourly ranks valued up to $62,500, while Ford and Chrysler are both offering buyouts valued at up to $70,000. Common wisdom would dictate this as bad news for everyone involved in the business, but that might not be the full story.

Chrysler plans to realign its three brands under one roof, which could result in improved service, franchise profitability and lower product costs.

Before you get all up in arms, these cutbacks could have a silver lining for everyone involved. First, there are those who are eligible to take retirement, but refuse to make the move. These folks have paid their dues, seen this industry go through turmoil more times than I am sure they care to remember, yet seem to have some need to just keep jumping into the fire; now's the time to punch the clock for the last time and head for greener pastures. I know of at least a few workers who have been on the line for more than 40 years. These folks need to have an honest discussion with themselves about why they continue to go back and get kicked around. Also, shouldn't your golden years mean enjoying the leisure you have worked hard for?

Another critical issue here is the next generation. While it's true that not all of these jobs will be replaced, some automakers are using these buyouts to hire younger workers at a lower starting wage under the new national contract. Some would say this is self-serving for the OEMs, but hiring a few hundred, maybe even a couple thousand people under the new wage rates will eventually help the U.S. economy at a time when there's desperate need for any sign of good news. These next-generation workers deserve the opportunity to enter the ranks, not to mention the fact that the veterans will get off the hot plate.

Chrysler has been the most vocal about wanting to cut its dealer ranks, with plans to merge all three of its Dodge, Chrysler and Jeep brands under one roof and cutting those who refuse to buy into the plans. Likewise, the company plans to make further cuts to its product lineup in order to streamline offerings and reduce competition among its own brands. GM is also closely eyeing ways to cut the number of dealers carrying its myriad of brands.

This is where the auto industry can have the biggest impact on its future. Cutting off those dealers who do more harm than good to the image of their brands holds promise. And that's the way the industry needs to approach these realignments, rewarding those franchisees who routinely go above and beyond when it comes to the sales and service experience, while leaving those who live by the old tired process of "bait and switch" out in the cold for good.

Having fewer dealers will not only help Detroit's Three keep better tabs on their service results, provide improve training and better response to potential problems; dealers also benefit through improved profits per store-due to the fact that the Chevrolet dealer at Third and Main is longer competing with the other Chevy store at 15th and Main-and improved sales commissions and better service revenues.

The problem is Detroit's Three need to develop a strong plan of attack when it comes to severing ties with some of its dealers. Customer satisfaction should trump deep pockets or seniority. After all, it's the customer who matters most, not the millionaire dealer who, while able to invest in new brick-and-mortar, has routinely left customers wanting more.

Once these two sides of the business get right-sized and better focused, it might signal the turning of the corner in the battle for survival.