Days after General Motors announced it would cut it's number of dealerships in the U.S. by 1,124, GM Canada is following suit. The number of Canadian GM dealerships being closed may sound much smaller at 292, however, with roughly 700 dealerships nationwide, the cuts represent a 42 percent dealership reduction.
GM Canada says the Sales & Service agreements it holds with the dealerships will not be renewed once they expire in October of 2010.
GM Canada says it focused on cutting dealerships in urban areas with higher populations, in an effort to continue to offer GM vehicles in rural communities as well. Considering the country's large land mass and relatively small population, however, visiting a GM dealership after October 2010 may mean a much longer drive for some rural residents.
"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," reads a GM Canada statement.