• May 21, 2009
General Motors Canada has announced that it has begun notifying its dealer body that it will be culling its sales networks by some 42 percent. The massive cut means that GM's 709 dealers will be trimmed by around 245 stores. The cuts will come as the restructuring automaker will elect to not renew its sales and service contracts come October 2010.

It is not immediately clear how many of those stores are from marques that GM is looking to divest or fold (Hummer, Pontiac, Saab, Saturn), but it is estimated by the Canada Automobile Dealers Association that some 10,000 jobs related may be affected by the cuts. Official press release after the jump.

[Sources: CBCNews; General Motors]

PRESS RELEASE:

GM Canada Statement Regarding Canadian Dealer Network Consolidation Activities

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.

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    • 1 Second Ago
  • 13 Comments
      • 5 Years Ago
      About time. Our city of less than 100,000 people has 2 GM stores and you still couldn't buy a Saturn, Saab or Hummer. One well equiped and well run store in each market selling all your brands is the way it should be. The remaining dealerships will be much more profitable which will allow them to invest in newer facilities, more advertising and better service.

      • 5 Years Ago
      I live in Alliston ON (Home of Honda Canada Mfg.). In a radius of 30km (19 miles) there are: 4 Honda, 4 Toyota, 4 Nissan, 5 Chrysler/Dodge, 7 Ford and 8 GM dealerships including 2 that are a mere 500 feet apart - in Alliston proper (about 10000 inhabitants...) and 2 more about 1000 ft. apart in Newmarket...
      • 5 Years Ago
      Auto Dealerships are like Real Estate Salespeople...The more you have out there, the better representaion and competition you have for your product. 2 Dealers close together are forced to compete harder and provide better services for their customers....the consumer wins! People tend to buy where they receive the best service and where it is most convenient. If there is no GM reprsention close...the consumer will move to another brand (and in some cases it is an import that does not provide manufacturing or skilled technical jobs in this country). This has been coming for a long time...and the old catch phrase of: "do you want your well educated kids to have to move to Japan for a job" has never been more realistic than it is now!!! We cannot give up all the associated 'high skill' jobs to the 3rd world (unless of course you want to move your families there). There are at least 60 jobs dependant on 1 manufacturing job. We can't afford to loose even 1 manufacturing job!!! North America wake up before it's too late!! I am in the industry and have been for the last 40 years. I know the depth that the car manufacturing industry has in our country. The auto unions should not have given up concessions unless those manufacturing jobs were brought back into our country.......for our children and theirs to follow......
      • 5 Years Ago
      Too Many Dealers too much repetition. If they become viable again, their dealer networks will gro again..
      • 5 Years Ago
      How can GM or Chrysler sell cars with out dealers?

      I don't think now is the time to cut dealers.

      W. Kirk Crawford
      Tularosa, New Mexico
        • 5 Years Ago
        Could you please do some research before typing again...
        • 5 Years Ago
        Because there are places with 8 GM dealers within an 8 mile radius.
      • 5 Years Ago
      42% of 709 is 298, not 245.
      • 5 Years Ago
      This medium sized Canadian city has four GM dealers within a one mile radius, all owned by the same group. Closing half will simply result in consolidation and the sale of surplus real estate assets. The illusory competitive environment will remain unchanged.
        • 5 Years Ago
        Yeah, many small towns have their own dealership, with a larger dealer only 15-ish minutes away.

        Usually these smaller dealers look like crap as well, and don't offer the same level of presentation that a larger dealer would have. That's one of the reasons that dealers have been getting cut. There are less Toyota dealers, for example, so the ones that do exist tend to be very nice, and fairly large.
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