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General Motors Corp.'s (GM) Canadian unit confirmed that it's notifying Canadian dealers Wednesday which of its about 700 dealerships will close in October 2010.

The auto maker said that, due to the "unique aspects" of the Canadian dealer network, its rationalization efforts will focus on key urban markets. "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," it said.

Local news reports have said about 250 Canadian dealerships will be told Wednesday that they will close. GM Canada didn't provide specifics in its statement.

Its struggling parent company told about 1,100 U.S. dealers last week that it was dropping them from its retail network. Letters to those dealers said GM doesn't expect to continue doing business with them beyond October 2010.

-Carolyn King; 416-306-2100; AskNewswires@dowjones.com