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Discussion Starter · #1 ·
Seems this issue of Canadians being treated much differently than their U.S counterparts runs much deeper than just what we consumers and want to be buyers of C7's are seeing. I can see why GM's market share is suffering so much in Canada given the angst many of us have gone thru trying to buy a C7, it has been ridiculous. As a long time GM multiple vehicle owner and a patiently waiting C7 buyer it all seems very sad to me. I know a lot of folks that work a GM both in Canada and the U.S., good people but Canadians will walk from your product if you treat them poorly.

GM Canada dealers sue company as sales plummet
The Globe and Mail staff
7:14 AM, E.T. | June 30, 2014

A group of prominent General Motors of Canada Ltd. dealers is suing the company and its parent General Motors Co., saying the auto maker has ignored their repeated pleas for financial help to address a dramatic drop in sales and market share.

GM Canada’s market share in the Greater Toronto Area plunged more than 50 percent between 2008 and 2013, hitting just 5.6 percent last year, according to the suit by 17 Toronto-area dealers. The list of dealers includes operators of some of the biggest GM dealerships in the country and some whose relationship with the company goes back to the 1920s.

GM Canada (GMCL) and its parent, the suit alleges, have failed to offer the dealers financial help, while pumping millions of dollars into support programs for U.S. dealers in markets that are similar to Toronto. While Toronto area dealers’ market share declined, U.S. dealers’ market share grew, says a statement of claim filed in Ontario Superior Court last week.

“GM responded to the problems faced by its American dealers by extending financial support and assistance, in accordance to its obligations to them, but GM and GMCL withheld similar support from Canadian dealers during a continuing decline in their market share,” the claim says.

That decision threatens the Toronto dealers’ long-term future, the claim says, even as the auto maker demands that the dealers spend up to $10-million each to redevelop their stores to meet new image standards set by the head office in Oshawa, Ont.

The lawsuit is an illustration of how the company’s restructuring of its Canadian dealership network is still reverberating – five years after its parent company went into Chapter 11 bankruptcy protection in 2009 and emerged after a $60-billion bailout financed by Canadian and U.S. taxpayers.

The suit alleges that none of the more than $10-billion contributed by the Canadian and Ontario governments went to help Canadian dealers, despite pledges that part of the bailout money would be used to help restructure the company’s network in Canada.

“The claims are without merit and we intend to defend them vigorously,” GM Canada spokeswoman Adria MacKenzie said in an email. She said the company will have no further comment because the issue is before the courts.

The lawsuit is the fourth legal action filed by groups of former or current GM dealers against the Canadian unit of the Detroit-based auto maker.

Two of those lawsuits, including one that was settled out of court in 2010, were filed by dealers who were terminated in 2009 when the company slashed its network in Canada by 30 percent. A separate class-action suit by terminated dealers is ongoing. A suit by Buick dealers is also still making its way through the legal system.
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