GM to close up to 300 dealerships
Written on May 21, 2009
General Motors of Canada confirmed today it has sent letters to about 300 dealerships that will close by the fall of 2010 under the ailing automaker's restructuring plan.
"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 company said in a statement.
The company said last month it would accelerate restructuring plans including a major reduction in its dealer network in efforts to qualify for several billion dollars in loans from the federal and provincial governments business cards template.
In its update of a "viability plan" last month, GM revealed it would slash the dealer network by 42 per cent or about 300 dealerships by the end of next year.
Filed in: economics.