GM Canada confirms 42 per cent of dealers getting termination notices

General Motors Canada has confirmed it is informing 42 per cent of its dealerships today that their sales-and-service relationships with the automaker will end.

GM says that as part of its "more aggressive operating plan,'' under pressure from the federal and Ontario governments, it will advise Canadian dealers of the specifics of its "network consolidation.''

This will include identifying dealers whose agreements will not be renewed when they expire in October 2010.

GM said the "rationalization'' is focused on key urban markets, and it aims to accomplish the reduction ``in an orderly, cost-effective and customer-friendly way.''

The result, it says, "will be a more competitive dealer network with higher volumes, while continuing to maintain the strongest and broadest dealer network in the