Toronto dealers sue GM for $400M

The suit alleges that GM had gone to the aid of dealers in major metropolitan areas in the United States but had not done the same for Canadian dealers. Some of the funds allocated to a program that provided aid to American dealers are said to have come from the money the Ontario and Canadian government provided during the GM bailout. The plaintiffs point out that the automaker forces them to spend millions of dollars to renovate or “reimage” their retail facilities under threat of penalty, which could include the termination of their franchise.

The Toronto Star
July 12, 2014

Toronto dealers sue GM for $400M
Auto News

Mary-Barra-556x371-556x300.jpg

General Motors CEO Mary Barra

In a 33-page court document dated June 25, a group of Toronto-area GM dealers have filed suit against General Motors and General Motors of Canada for damages in the sum of $400 million.

The gist of the complaint is that while operating any car dealership is expensive, operating one in a major city is by far the most expensive, thanks to higher property values, property taxes and labour costs.

The suit alleges that GM had gone to the aid of dealers in major metropolitan areas in the United States but had not done the same for Canadian dealers. Some of the funds allocated to a program that provided aid to American dealers are said to have come from the money the Ontario and Canadian government provided during the GM bailout.

The plaintiffs point out that the automaker forces them to spend millions of dollars to renovate or “reimage” their retail facilities under threat of penalty, which could include the termination of their franchise.

In response to my inquiry, General Motors of Canada corporate communications manager Adria MacKenzie wrote: “A number of Toronto dealers have taken legal action against GM. The claims are without merit and we plan to defend against them vigorously. As the matter is before the courts, we cannot provide any further comment. We will continue to be focused on our customers.”

The dealers named as plaintiffs include: Addison Chevrolet Buick GMC; Addison on Erin Mills Chevrolet Buick GMC; Applewood Holdings; Budds Chevrolet Cadillac Buick GMC; City Buick Chevrolet Cadillac GMC; Courtesy Chevrolet; Gateway Chevrolet; Hogan Chevrolet Buick GMC; Humberview Inc; Leggat Chevrolet Buick GMC; Leggat Chevrolet Cadillac Buick GMC; Markville Chevrolet; Roy Foss Chevrolet; Roy Foss Motors; Wallace Chevrolet Cadillac Buick GMC; and Wilson Niblett Motors.

http://www.wheels.ca/news/toronto-dealers-sue-gm-for-400m/


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