TORONTO -
General Motors of Canada has confirmed it is informing almost two-fifths of its dealerships that their sales-and-service relationships with the automaker will end.
A spokesman said letters were being sent Wednesday to about 245 of GM Canada's 709 dealers, and further consolidation is expected to increase the number of shuttered dealerships somewhat beyond that by the end of 2010.
Spokesman Stew Low added that the automaker will not be publicly releasing a list of the dealerships facing the axe.
GM stated that the "rationalization" is focused on key urban markets, and it aims to accomplish the reduction "in an orderly, cost-effective and customer-friendly way."
The result, it says, "will be a more competitive dealer network with higher volumes, while continuing to maintain the strongest and broadest dealer network in the country."
While General Motors of Canada has cut its direct workforce to 12,000 people, the dealer chain is estimated to employ 33,000 people.
