GM Canada Settles Dealer Lawsuit
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TORONTO, Ontario — General Motors of Canada and a group of 21 rejected dealers who were suing the company have reached a settlement, a GM Canada spokesperson confirmed to Auto Remarketing Canada this week.
Jason Easton, corporate communications manager for GM Canada, confirmed "that a conditional settlement has been reached … " in this particular suit — Stoneleigh Motors Limited et al v. General Motors of Canada — which was filed in November.
Though GM Canada said it could not provide any numbers, Easton indicated that some of the stores will retain their dealership rights while others will wind down by Oct. 31.
"The terms of the settlement are confidential," Easton noted.
One news report indicated that roughly 12 dealers are keeping their stores, while a different report pointed to the number being 10 or higher. Another put it at 13. It appears about a dozen dealers will retain their franchises.
GM Canada is also facing other dealer lawsuits right now, as well, according to news reports.
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"Although I can confirm there are other suits, I cannot provide any additional details as they are currently before the courts," Easton said.