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GM Canada confirms about 245 dealers getting termination notices

By Amarendra Bhushan for CEOWORLD Magazine Updated:May 21, 2009

General Motors Canada is telling almost 250 dealers they will lose their franchises next year as the automaker thins dealer ranks to make the remaining outlets more profitable.

GM Canada Statement Regarding Canadian Dealer Network Consolidation Activities

GM Canada, at the request of the Federal and Ontario Governments, accelerated its restructuring and released a revised, more aggressive Operating Plan on April 27th, which included plans to reduce the number of GM dealerships in Canada by approximately 42%.

Today, GM Canada will advise Canadian dealers of the specifics of our network consolidation plan, including the identification of dealers whose Sales and Service agreement would not be renewed following expiry in October 2010. The goal is to accomplish this reduction in an orderly, cost-effective and customer-friendly way.

Due to the unique aspects of our Canadian dealer network, we have focused our network rationalization efforts on key urban markets in an effort to achieve a viable network configuration all across Canada. The end result in Canada will be a more competitive dealer network with higher volumes, while continuing to maintain the strongest and broadest dealer network in the country better equipped to serve GM customers.

General Motors of Canada (GMCL) is headquartered in Oshawa Ontario and employs 12,000 people nationwide. GM of Canada manufactures vehicles, vehicle powertrains, and markets the full range of General Motors vehicles and related services through approximately 700 dealerships and retailers across Canada.

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