Toronto-area dealers sue GM, claim company won’t help them offset sales drop

TORONTO – A group of Toronto-area General Motors dealers is suing the automaker, claiming GM failed to provide them with adequate financial support despite receiving million of dollars in aid from taxpayers.

The Canadian dealers say they have been struggling to make a profit amid a big drop in market share and sluggish sales and have spent years asking GM and its parent company in the U.S. for help.

But, they say, none of the $10-billion in bailout money provided to the company by the Canadian and Ontario governments during the financial crisis has been spent in Canada. Instead, they suggestthe money has been invested in the U.S., a market the lawsuit claims GM considers more valuable.

The dealers are asking that GM provide them with “an appropriate level of financial support and assistance” and are seeking $400-million in damages.

A GM spokeswoman said the claims are “without merit” and that the company plans to defend against them vigorously.

The allegations have not been proven in court.