SOMBA K'E/YELLOWKNIFE - Yellowknife's oldest car lot, YK Motors, has wrung itself free of the chopping block of its parent company, GM Canada, which recently said it will close 250 of its dealerships across the country as part of its financial restructuring.

Besides phasing out its Pontiac line of cars by next year, the YK Motors dealership will make no other big changes to its lot in the wake of GM Canada's financial restructuring, say owner Tony Vane, left, and sales manager Roger Martin. - Guy Quenneville/NNSL photo

While larger cities like Edmonton and Calgary, which have as many as 10 dealerships, suffered cuts, Yellowknife's small size ensured YK Motors, open since 1957, would survive the clampdown, said owner Tony Vane.

"There were just too many dealerships in large cities. So they had to cut it out because they were competing with each other and it didn't make any sense," said Vane.

"But it had no effect whatsoever on small cities. Peace River is still in business, High Lake is still in business and we're still in business."

Under GM Canada's restructuring plan, the company and its dealers will focus on four franchise titles: Chevrolet, Buick, GMC and Cadillac, the latter of which is currently not offered on the YK lot.

Just as it phased out Oldsmobile cars four years ago, YK Motors will stop offering Pontiac vehicles by next year, said Vane.

Supply of Chevrolet, Buick and GMC vehicles will be beefed up to make up for the gap, he added.

Customer Bernie Turgeon was eyeing a Pontiac G5 on Monday morning, curious to find out if YK Motors will continue to provide parts for discontinued Pontiac vehicles.

"General Motors has agreed, and always has, to hold parts and warranty availability for cars that have been discontinued for at least 10 years," said Roger Martin, YK Motors sales manager.

Vane said sales at the dealership have slowed somewhat - "but not considerably" - in the past few months.

"People just weren't sure what was happening," he said.

That sense of uncertainty was felt by Turgeon, who inquired into the amount of monthly payments that would be necessary to hold the G5.

"$560 bucks a month and you're caught with that for three years - what happens if I lose my job?" said Turgeon. "I get repossessed. Now I've got no car. I've got a bad credit rating. So, in times like this, you have to be careful."

Sales of trucks and SUVs have remained strong, in line with national sales, said Vane.

While GM Canada car sales across the country last month fell by 40 per cent compared to the same month last year, truck sales increased by 23 per cent, according to figures released by the company last week.

"General Motors has been here (in Canada) for 100 years and they're going to be here for another 100 years," said Vane.