Ottawa, Ontario – The Canadian Automobile Dealers Association (CADA) has called on General Motors to reinstate some of the 240 dealers terminated in the wake of the company’s bankruptcy proceedings last spring. The call by CADA comes after media reports indicating that, in the U.S., the company is preparing to reinstate more than 580 of the 1,160 dealerships that have filed for arbitration to get their franchises back.
“It is clear that the process used to terminate some 240 GM dealers in Canada was flawed,” said CADA president and CEO Richard Gauthier. “Based on the American admission, it is clear GM Canada has made some mistakes and needs to own up to these mistakes and reinstate Canadian dealers just as they are doing in the United States.
“It is inconceivable that in the termination of 240 of its dealers, GM Canada did not make a single error,” Gauthier said. “The process used in the United States was obviously flawed and the process in Canada has been very problematic.”
CADA said that the fact that GM Canada has always taken the lead from GM in the United States is an important factor in CADA’s review of the decision-making process. Similarly, GM took taxpayer money in Canada as part of a joint Canada-U.S. bailout with a plan to reduce dealer numbers in both countries, and CADA said it makes sense to Canadian taxpayers that small business operators and employees in Canada be treated as fairly as they are being treated in the United States.
The association said that the forced closure of the 240 dealers represents the loss of more than 12,000 jobs in every region in Canada.