Small Alberta town surprised by GM dealership loss

People in the small Alberta town of Three Hills have learned that their town's only car dealership is closing next year.

Three Hills Motor Products is one of 245 GM Canada dealerships across the country told Thursday they are being mothballed as part of the company's restructuring plans.

The closure will have a big impact on the economy of the town of 3,000 northeast of Calgary.

Brad Luijkx, who upgrades a Chevy truck every five years at the dealership, said he was shocked by the news.

"I never thought it would happen," he said. "I've bought GMs over the years just because I don't have to drive to Red Deer or Calgary, wherever, and take them to get them serviced. It's convenience for me, that's the biggest thing."

For Timothy Shearlaw, who owns the local newspaper, it means a loss of about $9,000 a year in advertising revenue.

"Any amount to me is significant. I look at it as losing a tremendous service actually to Three Hills because they've been so supportive," he said.

Doug Lorraine, the owner of the dealership, declined to comment. Rollie Koch, the previous owner, said the dealership served a large region and had a reputation of good service and sales.

Calgary owner defends changes

Calgary has 11 GM dealerships.

Dan Smith, who runs the Shaw GMC in southeast Calgary, said he was relieved to learn he and his 180 employees have been spared, but he realizes not everyone has been so lucky.

"It's a mixed day for us," he said.

The company said it was reducing the number of dealers in order to stay competitive as overall auto sales continue to slump throughout North America.

"By consolidating the dealer network, it makes the stronger dealers stronger. And it allows the corporation to continue to move forward," Smith said. "The cuts, while very hard, are very necessary to ensure that General Motors is successful in the future."