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GM Canada Eliminating 245 Dealers

Location Canada 2009
General Motors (GM) Canada has notified 245 dealers that they will not renew their franchise agreements when they expire in October 2010. The Canadian Press (CP) reports that the company's dealer chain in Canada currently employs an estimated 33,000 people and quotes Michael Hatch, chief economist at the Canadian Automobile Dealers Association, as estimating 10,000 jobs could be lost with the dealership cuts. "People look at the auto sector, sometimes, and they think it's just Detroit and Oshawa and Windsor, but dealerships are the retail presence...and everybody knows that they're located in virtually every community in the country," says Hatch in the CP report. As it did with its American dealer elimination announcement, GM will not publicly identify the dealers being cut. The announcement comes as GM Canada and the Canadian Auto Workers (CAW) union continue negotiations on additional worker concessions.

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