GM Canada, whose 27 April operating plan included a dealer reduction of about 42%, said it advised dealers on Wednesday "of the specifics of our network consolidation plan, including the identification of dealers whose sales and service agreement would not be renewed following expiry in October 2010".

"The goal is to accomplish this reduction in an orderly, cost-effective and customer-friendly way," the automaker said in a statement.

"Due to the unique aspects of our Canadian dealer network, we have focused our network rationalisation efforts on key urban markets in an effort to achieve a viable network configuration all across Canada. The end result in Canada will be a more competitive dealer network with higher volumes, while continuing to maintain the strongest and broadest dealer network in the country better equipped to serve GM customers."