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General Motors said Monday it will not be giving its dealerships slated for closure in Canada the same option to remain open that was offered to their U.S. counterparts on Friday.
GM said then it would reinstate more than half the dealerships it had targeted to drop from its network.
GM said on Friday about 600 of the 1,100 U.S. dealerships seeking to stay with the automaker would receive letters giving them the option to remain with the franchise.GM said on Friday about 600 of the 1,100 U.S. dealerships seeking to stay with the automaker would receive letters giving them the option to remain with the franchise. (Paul Sancya/Associated Press)
A GM Canada spokesman said the decision to reinstate 661 dealerships south of the border has no bearing on the 240 Canadian dealerships in the process of closing.
Tony LaRocca said that's because the scenarios are entirely different since the Canadian operation never had to file for bankruptcy.
The automaker said Friday the U.S. dealerships would receive letters giving them the option to remain with the franchise. The decision to reinstate some American dealerships came after Congress passed a law in February requiring an appeals process for the dealers. Originally, GM had said it would cut 2,000 of its 6,000 dealerships.
GM Canada began notifying dealerships in May of its plans to reduce its network by 40 per cent by October of this year as it worked to make itself profitable. About 200 of the more than 700 dealerships in Canada have already closed and some have filed legal action against the company.
At the time, the Canadian Automobile Dealers Association estimated 10,000 jobs could be affected.
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