Canadian Dealers Association Calls for GM Dealer Reinstatement

OTTAWA, March 5 /CNW Telbec/ - The Canadian Automobile Dealers Association (CADA) today called on General Motors Canada to reinstate some of the 240 dealers terminated in the wake of General Motor's flirt with bankruptcy proceedings last spring. The call by CADA comes after media reports indicating General Motors in the United States 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. 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," stated CADA President and CEO Richard Gauthier.

The impact of the closing of 240 GM dealership in Canada will have a tangible negative impact on the Canadian economy and very simply should not happen. "It is inconceivable that in the termination of 240 of its dealers, GM Canada did not make a single error. The process used in the United States was obviously flawed and the process in Canada has been very problematic," add Gauthier.

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 on both sides of the border. 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.

"GM Canada has an opportunity to correct an egregious wrong to the Canadian small business community, thousands of employees and the Canadian taxpayer. They need to step up and do the right thing as the parent company in the United States has done," concluded Gauthier.

The forced closure of the 240 General Motor dealers represents the loss of more than 12,000 jobs in every region in Canada.

The Canadian Automobile Dealers Association (CADA) is the national association for franchised automobile dealerships that sell new cars and trucks. Our 3,500 dealers represent a key sector of Canada's economy. Through our dealers, we are represented in nearly every community and those dealers collectively employ over 140,000 people across the country.

For further information: Huw Williams, CADA Public Affairs, Toll free: 1-800-465-3054, Tel: [phone], Cell: [phone] or [email protected]