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Former GM dealers say they were misled by the company

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Josée Paquet
Former GM dealers in Ontario, Alberta and Price-Edward-Island claim they were misled by General Motors of Canada when the dealer network got restructured following the crisis of 2009.

Represented by their lawyer, David Stern, they argue that the automaker ignored provincial laws requiring companies to send a 14-day notice before closing a store. GM reportedly told its dealers that they could receive a compensation if they reached an agreement within six days after a closing announcement.

Stern said that GM wanted to close some of its dealerships to avoid filing for bankruptcy. It also put itself in a conflict of interests by hiring Cassel Brock, a law firm that already represented GM and its dealers in a different battle.

The aforementioned dealers now demand $750 million in compensation, minus the amount that's already been allocated by GM of Canada. The latter countered by asking dealers to return the money they received, even though this would violate the deals signed in 2009.

Source : auto.lapresse.ca
 
Josée Paquet
Josée Paquet
Automotive expert