Home / Auto News / News article: General Motors Canada to Close 42% of Dealerships - AutoGuide.com News
 |  May 20 2009, 10:19 AM

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Days after General Motors announced it would cut it’s number of dealerships in the U.S. by 1,124, GM Canada is following suit. The number of Canadian GM dealerships being closed may sound much smaller at 292, however, with roughly 700 dealerships nationwide, the cuts represent a 42 percent dealership reduction.

GM Canada says the Sales & Service agreements it holds with the dealerships will not be renewed once they expire in October of 2010.

GM Canada says it focused on cutting dealerships in urban areas with higher populations, in an effort to continue to offer GM vehicles in rural communities as well. Considering the country’s large land mass and relatively small population, however, visiting a GM dealership after October 2010 may mean a much longer drive for some rural residents.

“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,” reads a GM Canada statement.


Official release after the jump:

GM Canada Statement Regarding Canadian Dealer Network Consolidation Activities

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Oshawa, ON, May 20, 2009 — 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.