General Motors of Canada will follow the lead of the US branch by reducing the number of dealerships across the country by 42 percent as several nameplates will be tossed aside. The announcement came earlier this morning.
Of the 705 GM dealerships currently operating in Canada, around 400 will still be in business by the end of 2010. The discontinuation of the Pontiac brand, whose products won't be sold under any other nameplate, made this move necessary.
Meanwhile, the definitive fate of Saturn, Hummer and Saab will be determined later this year.
Repercussions still unknown
"It's still way too early to pinpoint the exact dealerships that will be affected by this decision. Our dealers will receive a call and we will explain to them what the situation is. Then, in the next few months, we will meet with each one to talk about the detailed strategy," said Tony Larocca, Communications Director at GM Canada.
The revised Restructuring Plans released this morning by the automaker at a press conference in Detroit call for a number of additional changes that will also impact Canadian operations. GM Canada President Arturo Elias said, "Many of the operational changes announced today by General Motors in the United States will enhance the viability of our highly-integrated Canadian operations as we complete our discussions with the Ontario and Federal governments on GM Canada's restructuring plans."
The new strategy includes an acceleration of several known changes. For instance, GM Canada's hourly workforce is expected to go from 10,300 in 2008 to 4,400 in 2014. Moreover, plant closures that were already announced will remain in effect, including the closure of the Oshawa Truck Plant scheduled for May 14, 2009.
"Despite all this, GM Canada remains a critical manufacturing location for GM Corporation, added Elias. In 2009, we will launch 3 of 6 new GM products in North America between the Oshawa Car and the CAMI facility. These launches from Canadian plants include the all-new Chevrolet Camaro, the next-generation Chevrolet Equinox and the all-new GMC Terrain."
Further labor discussions on the horizon
General Motors will also revise its deal with the Canadian Auto Workers in light of the provisions of the new CAW-Chrysler agreement signed a few days ago.
"This announcement does not change our sales forecasts. GM Canada still projects an 18.4-percent market share in 2009 and somewhere between 16 and 17 percent for 2010 through 2014. We stand by our predictions as we move toward a more profitable balance of sales in Canada," said GM Canada executives through their press release.
Tony Larocca also insisted that "the upcoming weeks, up until June 1, will be crucial to ensure a successful new beginning. We remain confident in our chances."
photo:General Motors
Of the 705 GM dealerships currently operating in Canada, around 400 will still be in business by the end of 2010. The discontinuation of the Pontiac brand, whose products won't be sold under any other nameplate, made this move necessary.
Meanwhile, the definitive fate of Saturn, Hummer and Saab will be determined later this year.
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| "Many of the operational changes announced earlier today by General Motors in the United States will also enhance the viability of our highly-integrated Canadian operations," said GM Canada President Arturo Elias. |
Repercussions still unknown
"It's still way too early to pinpoint the exact dealerships that will be affected by this decision. Our dealers will receive a call and we will explain to them what the situation is. Then, in the next few months, we will meet with each one to talk about the detailed strategy," said Tony Larocca, Communications Director at GM Canada.
The revised Restructuring Plans released this morning by the automaker at a press conference in Detroit call for a number of additional changes that will also impact Canadian operations. GM Canada President Arturo Elias said, "Many of the operational changes announced today by General Motors in the United States will enhance the viability of our highly-integrated Canadian operations as we complete our discussions with the Ontario and Federal governments on GM Canada's restructuring plans."
The new strategy includes an acceleration of several known changes. For instance, GM Canada's hourly workforce is expected to go from 10,300 in 2008 to 4,400 in 2014. Moreover, plant closures that were already announced will remain in effect, including the closure of the Oshawa Truck Plant scheduled for May 14, 2009.
"Despite all this, GM Canada remains a critical manufacturing location for GM Corporation, added Elias. In 2009, we will launch 3 of 6 new GM products in North America between the Oshawa Car and the CAMI facility. These launches from Canadian plants include the all-new Chevrolet Camaro, the next-generation Chevrolet Equinox and the all-new GMC Terrain."
Further labor discussions on the horizon
General Motors will also revise its deal with the Canadian Auto Workers in light of the provisions of the new CAW-Chrysler agreement signed a few days ago.
"This announcement does not change our sales forecasts. GM Canada still projects an 18.4-percent market share in 2009 and somewhere between 16 and 17 percent for 2010 through 2014. We stand by our predictions as we move toward a more profitable balance of sales in Canada," said GM Canada executives through their press release.
Tony Larocca also insisted that "the upcoming weeks, up until June 1, will be crucial to ensure a successful new beginning. We remain confident in our chances."
photo:General Motors