Cape Breton to lose two GM dealerships

Two of the three General Motors dealerships in Cape Breton will be gone by October 2010.

Ron May confirmed to CBC News that his Sydney Pontiac Buick GMC business is losing its sales and service agreement with GM, along with Highland Chevrolet in Glace Bay.

Combined, the two dealerships employ between 50 and 60 people.

MacIntyre Chevrolet in Sydney will be the lone survivor.

General manager Shaun MacIntyre said his dealership may hire technicians and other staff from the other two GM outlets. He also said he would try to ensure that GM car owners are taken care of.

"We'll be adapting and of course with the restructuring there'll be many changes to come. And we want to make sure the customer is the last person to feel any changes," McIntyre said.

On Wednesday, GM Canada began notifying more than 200 dealers around the country that their sales and service agreements will not be renewed when they expire next year.

The move is part of the company's restructuring plan as it tries to secure aid from the Canadian and U.S. governments.