GM Canada has begun notifying dealerships of its plans to cut its network by 40 per cent as part of the restructuring required to secure aid from the US and Canadian governments.
GM confirmed it has begun notifying 245 of its 709 Canadian dealerships which ones ill not have their sales and service agreements renewed when they expire in October 2010.
An estimated 10,000 jobs are expected to be lost as a result of the closures.
Last week, GM started informing about 1100 of its US dealerships that they were being dropped.
As part of its restructuring, GM has said it plans to abandon its Pontiac brand and sell the Saab, Saturn and Hummer brands.
The company has until the end of this month to convince the US and Canadian governments that it is restructuring to become a viable business, otherwise it will be forced in to Chapter 11 bankruptcy protection in the same way as Chrysler.