It's Official. GM to close 1/3 of Canadian Dealers

[Honda Owner]

GM is closing 245 of it's 709 dealerships in Canada. There were close to 1000 in 1990, btw.

http://ca.news.yahoo.com/s/capress/090520/business/gm_dealerships

Your tax dollars at work!

[safristi]

  I got a REFUND.............

[PJungnitsch]

I find it hard to figure how this will help GM any. The huge dealer network is a big advantage of buying GM, every little burg has parts, service, and a showroom. And in the bigger centers more dealers means more service opportunities, more vehicle selection, etc.

Sure it will be better for the GM dealers that survive, but for GM itself?

[footlong58]

I find it hard to figure how this will help GM any. The huge dealer network is a big advantage of buying GM, every little burg has parts, service, and a showroom. And in the bigger centers more dealers means more service opportunities, more vehicle selection, etc.

Sure it will be better for the GM dealers that survive, but for GM itself?

Saturation.

[G0dspd]

GM Canada plans to cut 40% of its dealer network
http://www.cbc.ca/money/story/2009/05/20/gm-dealerships-dropped.html?ref=rss

I wonder if it's the urban or the rural areas who are going to get hit the hardest.

[Honda Owner]

I wonder if it's the urban or the rural areas who are going to get hit the hardest.

Sell cars=live

Don't sell=die

In Vancouver there are two dealers owned by the same family within a short distance of each other. One will be going. There are two in Richmond. One will be going......

[tpl]

G has a  Chev Caddy  about 300 metres from a Pontiac Buick GMC  in our Golden Mile  for a town of 120,000 so I am sure one will go.   

[Stuff]

I'm going to take a guess and say they will get out of the smaller markets  even though there isn't another GM dealer within a 25 minute drive. I have a friend who lost a dealership about 20 years ago despite being fairly profitable and the nearest dealer was approx 25 minutes away.

[Stuff]

G has a  Chev Caddy  about 300 metres from a Pontiac Buick GMC  in our Golden Mile  for a town of 120,000 so I am sure one will go.   

Makes you wonder if the Pontiac dealer saw this coming with the expansion they just had recently. I've never been to the Chev dealer, no idea what it's like in comparison.

[johngenx]

I think it depends on their profitability.  I know a guy that owns the Ford dealer in a smallish town (pop 10K) and he makes a TON of dough from the dealership.  Some of those rural dealerships are serious moneymakers and anyone would be stupid to close them.

[sailor723]

I think it depends on their profitability.  I know a guy that owns the Ford dealer in a smallish town (pop 10K) and he makes a TON of dough from the dealership.  Some of those rural dealerships are serious moneymakers and anyone would be stupid to close them.

Yes but, does GM care how profitable a dealership is or merely how many units it moves?

[Cord]

I think it depends on their profitability.  I know a guy that owns the Ford dealer in a smallish town (pop 10K) and he makes a TON of dough from the dealership.  Some of those rural dealerships are serious moneymakers and anyone would be stupid to close them.

Yes but, does GM care how profitable a dealership is or merely how many units it moves?

Indeed, these closures are supposedly for GM's benefit. I doubt they'd spare a small volume dealership just because the owner makes good money.

[Trainman]

In the last 15 years, our town has gone from all 3 Big 3 dealers to just GM.  Wonder if they too will be going?

Ford was first to leave, about 15 years ago, followed by Chrysler a couple of years back.  Their lot is still for sale.

The GM dealer expanded onto a second lot last year and has new ownership in the last couple as well.  They say they are doing well and selling good volume.  They say   

Time will tell......

[HeliDriver]

GM Canada plans to cut 40% of its dealer network
http://www.cbc.ca/money/story/2009/05/20/gm-dealerships-dropped.html?ref=rss

I wonder if it's the urban or the rural areas who are going to get hit the hardest.

No need to wonder - it says right in the article:

"Due to the unique aspects of our Canadian dealer network, we have focused our network rationalization efforts on key urban markets in an effort to achieve a viable network configuration all across Canada," the company said in a press release."

[PJungnitsch]

A few of the cancelled dealers have been mentioned in this thread:

Three Hills Motors, Three Hills, AB
Old Mill Pontiac Buick Toronto Ontario, Dundas
Don Howson Toronto Chevrolet - 2135 Sheppard Avenue East Toronto
Plaza Pontiac Buick GMC 3400 Dufferin Street Toronto
Marvin Starr 3132 Eglinton Ave East Toronto,
Royal Chevrolet-Cadillac Inc 633340 Hwy 10 Orangeville
John Logan Chevrolet; 241 Queen Street East; Brampton
Richardson Chevrolet. Regional Road 25 South, Milton, Ontario
Hawley Pontiac Buick GMC 225 DUNDAS STREET EAST, MISSISSAUGA ONTARIO.
Meadow Mills Pontiac Buick GMC 6600 Turner Valley Road Mississauga
LAURIE WILLIAMSON PONTIAC BUICK GMC LTD 3045 GLEN ERIN DRIVE MISSISSAUGA
Brian Finch, London, Ontario

http://www.gminsidenews.com/forums/f70/just-gm-canada-dealers-learn-fate-tomorrow-79554/index6.html

[2hondas1BMW]

Funny how you mention Brian Finch Pontiac GMC...the guy just bought a Hyundai Dealership, Hyundai South, here in London. Smart move Mr. Finch! 

[PJungnitsch]

Heh, some of these dealers could see which way the wind was blowing. Here one of the local Chrysler dealers just bought the Honda franchise. No sense in having all your eggs in one rickety basket.

On the Three Hills closing (rural area, no other dealers of any kind close by), this is the type of thing I can't understand GM gaining by:

Brad Luijkx, who upgrades a Chevy truck every five years at the dealership, said he was shocked by the news.

"I never thought it would happen," he said. "I've bought GMs over the years just because I don't have to drive to Red Deer or Calgary, whereever, and take them to get them serviced. It's convenience for me, that's the biggest thing."

Sure, maybe the Red Deer and Calgary GM dealers gain a bit, but who says the vehicle shoppers when they get to the big centers don't stop in a Ford or Toyota store instead?

[ovr50]

Three Hills? I grew up in a small town just 9 miles north of Three Hills, and frankly, I am surprised they are still there as a dealership, and secondly, I can't imagine how small their volume must be - most everyone in that area drives to Red Deer or Calgary for their cars/trucks.

Being cut by GM is no surprise to me...

[rrocket]

Too many dealerships for GM.  In the Windsor and surrounding areas, there are at least 10+ GM dealerships.  There is ONE Toyota.  ONE Honda.  ONE BMW/Mercedes (both under one roof). FOUR Fords. SIX Jeep/Chrysler/Dodge. ONE Mazda.  ONE VW. ONE Saturn.  ZERO Acura.  ZERO Subaru.

[tenpenny]

GM is making financial settlements with the dealers that are being chopped, based on sales numbers, inventory, and service business volumes.