General Motors (GM) Canada: 300 dealer closings

The Canadian unit of General Motors (NYSE:GM), notified 300 dealers yesterday that they will not be renewing their sales agreements next year. The news comes as GM announced that they are to close 1,100 dealers, shrinking its retail network by 43 percent.

These 300 dealer closings will take effect when their contracts are up in October 2010. The dealerships hit most are those in urban markets, GM currently have 700 dealers in Canada, so the closure of 300 will leave them with just 400 dealerships.

These closures are all part of General Motors cost cutting exercise, which it has been forced to do by the U.S. government. GM faces a possibly bankruptcy filing, which is why they are working as hard as they can to cut its debt. Bloomberg has an update on this story

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