At least 70 Quebec GM dealers to close

GM dealers in Quebec have mixed feelings about the company's decision to close nearly half its retail network in order to restructure and tap into government aid.

"I don't think it was expected, when we got into the business 20 years ago," said Jean-Claude Gravel, a Montrealer who owns four GM dealerships on the island.

GM's decision to shut down 40 per cent of its Canadian dealerships is a sign of the huge shift underway in the auto industry, and lot of dealers have different views of the direction the sector is taking, he said.

"Some guys are happy, they see their future bright," Gravel said. "Other guys are upset, because they thought they were part of the solution, and they weren't."

On Wednesday, GM notified 70 dealers across Quebec that their sales and service agreements will not be renewed when they expire in October 2010.

The decision means as many as 3,500 dealership jobs will be lost in Quebec alone.

Across Canada, GM hopes to shed at least 245 dealerships as part of its restructuring plan that will help secure aid from U.S. and Canadian governments.

The car business has been sluggish for a few years, and some Quebec dealers had been complaining to the company that there are too many lots already, and "some guys want to get out of the business anyway," Gravel said.

It's still tough to move on from the business, like "losing your old dog," Gravel added, while declining to say how many of his dealerships are affected. "You're very sad about it, but your new one is kind of cute, and you're going to get used to it."

"One side of me is excited about the new GM that's going to make money, with less dealers, selling more cars, that's all nice," he said.

"It's fresh news, and it's freshly cut, so it's still hurting a bit, and we know we are going to lose a lot of friends."