Both General Motors and Chrysler have announced that they are effectively closing nearly a total of 2,000 dealerships across the country by not renewing their franchising contracts. In the wake of the announcement, millions of vehicle owners are concerned about what this means to them and Better Business Bureau is providing answers to some frequently asked questions about dealer closings.

After filing for Chapter 11 bankruptcy protection, Chrysler announced that it will terminate 798 franchise agreements with dealers across the U.S. in June 2009. This amounts to about 25 percent of Chrysler dealers and affects approximately four million customers who bought or serviced their cars. General Motors has also announced that they will not renew agreements with 1,100 dealers in the U.S. and 300 of the 700 GM dealers in Canada.

“Millions of GM and Chrysler customers will be affected by dealer closings and minimizing the amount of confusion is important,” said Chris Lawrence, , Chief Executive Officer for BBB Serving Central and Northern Alberta. “In some cases, owners will have to drive a little farther to get their vehicle serviced if their dealer shuts down; however, there can be larger issues consumers need to be aware of, including the potential for getting stuck with the payment for the vehicle they traded in.”

How did Chrysler and GM decide which dealers to close?

GM and Chrysler have indicated that the reason for closing specific dealers was a matter of customer satisfaction, sales performance and market over saturation. GM has stated that about half of the dealers not being renewed only sold 35 cars per dealership in all of 2008. Similarly, Chrysler has stated that half of the closing dealerships sold less than 100 vehicles.

When compared to other manufacturers, GM and Chrysler will still have a large number of dealers. GM is aiming to have 3,600 dealers by 2,010 and Chrysler will have 2,411, compared to the current 1,304 Honda dealers and 1,470 Toyota dealers in the US.

When will the affected dealers close their doors?

The affected Chrysler dealers will not have their franchise agreements renewed effective June 9, 2009. GM is planning to cut their number of dealers to 3,600 by 2010; already, 1,100 dealers have received letters notifying them that GM will not renew their agreement and most affected dealers will see their contract expire in October of 2010.

Where can I find out which dealers are closing?

Chrysler has made their list of dealer closings public. GM has not released an official list of dealers yet; however, some dealers are already receiving the bad news and reporting it to local media.

Will my warranty or extended warranty be affected?

A warranty or extended warranty is offered by the automaker and is not affected by a dealer closing. Both Chrysler and GM have indicated that they are committed to honoring their manufacturer’s warranty despite declaring bankruptcy. Extended auto warranties, such as the protection plans offered by GM, are backed by a separate company which is affiliated with—but not financially tied to —the company that actually manufactures the vehicles.

How will I know where to take my car for service?

Both GM and Chrysler warranties will be honored by any respective certified dealer. Chrysler has stated that the millions of customers who bought their cars from affected dealers will be notified in early June where they can take their autos for service. GM owners can use the dealer finder at www.gm.com/vehicles/dealer to find their closest option.

What if I traded in my car for a new one and the dealer closes its doors without paying off the loan on my trade-in?

While a dealer is supposed to pay off the loan on a vehicle they accept for a trade-in, they might not if they go out of business. When this happens the original owner could be liable for making payments on both cars or the lender could go after the person who bought the used car from the dealer. While this is a rare occurrence, it can happen and states such as California have created funds to reimburse such victims.

For more advice you can trust from BBB about buying and owning a vehicle, and for auto warranty dispute information from www.edmonton.bbb.org.

We proudly welcome new Accredited Businesses that have pledged to abide by BBB^® Principles for Trust in an effort to protect and promote the free enterprise system through self-regulation.

The following is a list of new BBB Accredited Businesses whose applications have been approved by our Board of Directors from May 1 to 31, 2009.

To find out more about these new BBB Accredited Businesses and the goods and services they provide, "click" on their business name and view their e-Page and link to their online Reliability Report, from our Web Mall. Each report also provides contact information.

• Alberta Asphalt Enterprises Inc - Edmonton
• Ancient Alternatives - Edmonton
• Artista Concrete Designs Inc. - Edmonton
• Best Air Service Heating & Cooling - Edmonton
• City Wide Lawn & Snow Ltd - Edmonton
• Crack Buster Concrete - Edmonton
• Darberg Carpentry - Edmonton
• Electri-Can Installations Ltd - Edmonton
• ELI Builders Ltd - Edmonton
• Green Lantern Electrical Ltd - Edmonton
• J Ruest Drywall & Taping Inc - Edmonton
• JMK Renovations - Edmonton
• Jolly Time Travel Services Ltd - Edmonton
• Lo-Cost Automatic Transmissions - Edmonton
• Lo-Cost Automatic Transmissions - Edmonton
• Lorman Covers & Manufacturing Ltd - Edmonton
• MAD Siding Ltd - Edmonton
• Metrocore Facility Services Inc - Edmonton
• Morris Shingles & Exteriors Ltd - Edmonton
• Picture That Photography - Edmonton
• Prosource Wholesale Floorcovering - Edmonton
• The Canadian Deck Company Ltd - Edmonton
• Transitions Renovations Ltd - Edmonton
• Celdan Contracting - Fort Saskatchewan
• Lanco Construction Ltd - Grande Prairie
• Bruce Mechanical Services - Sherwood Park
• GSS Geothermal Ltd. - Sherwood Park
• Infinity Energy - Sherwood Park
• Advantage Construction - Spruce Grove
• Landscape FX - Stony Plain

You can also click here, to search for BBB Accredited Businesses and the services they provide, or check out any businesses and services, in our online search.

During the month of May 2009 the following businesses (listed alphabetically by their city/town where they are located) renewed their Accreditation with BBB Serving Central and Northern Alberta and their commitment to trust and reliability in business.

BBB wishes to thank these businesses and urges all consumers and businesses to support these and other BBB Accredited Businesses, listed by their type of business (TOB) in our Accredited Business Roster or searchable by their business name in Company Reports. Using our e-Quote system, consumers and purchasers can also request prices and information from BBB Accredited Businesses.

Acheson, Cardiff Echoes, Gunn, Spruce Grove, Stony Plain

Trans Tech Contracting Inc, Raindance Irrigation, BestCurb & Construction, Bear Paving Ltd, Glen Oaks Construction & Management Ltd, Golden Spike Lumber Sales Ltd, TuneTech Auto Repair, Ashly-Lane Interiors Ltd, The Black Dirt Company

Ardrossan, Fort Saskatchewan, Lancaster Park, Westlock

Frank's Custom Woodcraft, Gem Sod Farms Inc, Lancaster Park Golf & Curling Club, MoBetta Water Inc

Beaumont, Leduc

Kestrel Resources Ltd, ohnson Agencies (1973) Ltd, Kantrax Contractors Ltd, Vision Care Plus

Camrose, Lacombe, Rocky Mountain House, Sedgewick

Camrose Auto Wreckers Ltd, Zetsen Master Builders Inc, Wolf Creek Cabinets Ltd, Dean's Answering Service, Qwest Haven Relocation Services Inc

Edmonton

4 Seasons Auto Body ,  A-Star Tours Ltd ,  ACS, Public Sector Solutions Inc ,  Active Tree Services ,  Advanced Cleaning Professionals Inc ,  Aegis Lockworks Ltd ,  Al's Piano And Furniture Moving ,  Alberta Mortgage Centre ,  Alberta's Best Foundation Repair Ltd ,  Alldritt Homes Limited ,  Amcor Roofing Specialists ,  Anco Home Improvements Ltd ,  Apple Fitness Store Ltd ,  Argus Machine Co Ltd ,  Artison's Floor Fashions Ltd ,  ASAP Garage Builders ,  Audrey's Therapeutic And Relaxation Massage ,  Award Landscaping Ltd ,  B-Wise Contractors Ltd ,  Baskets-Express-It.com ,  Bestway Concrete Ltd ,  Blue Sky Limos ,  Bredin Institute - Centre For Learning ,  Budget Rent A Car Of Edmonton Ltd ,  Builders Wholesale Appliances ,  Builders' Floor Centre Ltd ,  C W Eavestroughing Inc ,  Canar Rock Products Ltd ,  Canessco Services Inc ,  Canfab Products Ltd ,  Capital Packers Inc ,  Club Fit Corp ,  Corus Custom Networks ,  Competitive Concrete ,  Con-Spec Industries Ltd ,  Concept Developments Ltd ,  CrackMaster Concrete ,  Crime Report Publications Ltd ,  Cutting Edge Lawn Maintenance & Landscaping Ltd ,  Dansol International ,  Danuk Construction Ltd ,  Diogo's Concrete Works Ltd ,  Don's Power Vac / Furnaceman (Div Of Laser Clean Ltd ,  Drive 4 U ,  Edmonton Queen ,  Edmonton Valve & Fitting Inc ,  Evergreen Funeral Chapel ,  Freedom Ford Sales Ltd ,  GQS Construction ,  Granite Transformations ,  Hepalta Purified Air Inc ,  Ideal Tile and Terrazzo Ltd ,  Independent Jewellers ,  Innovel Technologies Ltd ,  Jackson & James Overhead Door Services ,  Jayman MasterBUILT ,  Kingsgate Automotives Ltd ,  Kites & Other Delights ,  Knight Heating Ltd ,  Lautner Construction Ltd ,  Lehmann Plumbing Ltd ,  MacNair Construction Products Ltd ,  McCloskey Construction Ltd ,  Metro Concrete Services Ltd ,  Michael Anthony Jewellers ,  Michener Allen Auctioneering Ltd ,  More Than Cigars Ltd ,  My Mailout ,  N G Home Design Ltd ,  N'Take ,  Northlands ,  Orion Building Maintenance Ltd ,  P & T International Forwarding Ltd ,  P C Corp ,  Param Homes Ltd ,  Parts 4 Automatic Transmissions ,  Performance Paving Services Inc ,  Personal Support & Development Network (PSDN) ,  Polycore Canada Inc ,  Portage La Prairie Mutual Insurance Co ,  PPB Enterprises Inc ,  Preet Janitorial Services Ltd ,  Preferred Personnel Of Canada Inc ,  Pryme Restoration Inc ,  R & D Roofing Ltd ,  R V Country Services Inc ,  Regal Hardwood Flooring ,  Reward Construction Ltd ,  Roma Concrete Service Ltd ,  Runzer's Truck Parts Ltd ,  S M R T Consulting ,  Select Fireplaces ,  Seven M Construction Ltd ,  Shaske & Zeiner Appraisal Consultants Ltd ,  Shoppers Auto Refinishers Inc ,  Shoppers Home Healthcare ,  Sinclair Electric Ltd ,  Soldan Fence & Metals Ltd ,  Tara Jewellers (1986) Ltd ,  Telford Investments Ltd ,  The Energy Doctor ,  Titan Construction (1989) Ltd ,  Thrifty's Landscaping Supplies ,  Triple E Hardwood Flooring ,  Truck Master Manufacturing & Equipment Ltd ,  TS Building Services Ltd ,  TTR Coatings Ltd ,  U-Store-It-Canada Ltd ,  Velocity Cycle ,  Venato Stone Inc ,  Vigor Mechanical Ltd ,  Walton International Group Inc ,  Westhill Construction Ltd ,  Williams Moving & Storage Ltd ,  Xavion Interior Finishing Corp

Fairview, Grande Prairie

Reynolds Plumbing & Heating (80) Ltd, Bradvin Trailer Sales Ltd, Loreck Homes Ltd, Monarch Homes Inc, Start-Rite Driver Education Ltd

Fort McMurray, High Level

Birchwood Autobody, Fort McMurray Animal Hospital, Fort McMurray Home Hardware Building Centre, Shamrock Maintenance & Autobody Ltd, MacKenzie Report Inc

High Prairie, Whitecourt

Monahan Ford Kawasaki, Kammec Mechanical Consultants Ltd

Jasper

Miette Hot Springs Resort Motel

Lloydminster

City Center Auto Body Ltd

Red Deer

A E S Industrial Supplies Ltd, Axford Construction Inc, Central Alberta Tile One, Diamond Key Homes, Doormasters Inc, Hauck Vision & Hearing Centre Ltd, Herbal Magic Weight Loss & Nutrition Centres, Lee Specialties Ltd, Phoenix Construction Inc, Woodmaster Cabinets Ltd, AB Storage

Sherwood Park

Douglas Environmental Solutions, Evergreen View Farm Enterprises, GM Developments, Heritage Dry Cleaners, Reel Mowers Inc, Servicemaster Of Edmonton, The Gift Connection Plus, Yu-ccan Corporation

St Albert

G T & Sons Ltd,Gayle's Decorating Ltd, Grandin Bakery (1976) Ltd, Jensen Roofing Ltd, Kingsgate Homes Ltd, Millennium Modular Homes Ltd, St Albert Glass Contracting Ltd, Sutton Nor-Vista Realty