AUTO INDUSTRY SHIFTS OUT OF LOW GEAR...article for Financial Post August 14th 2010

The Canadian auto sector has undergone a massive overhaul in the past year, and Robert Stein has been along for the ride.

Mr. Stein's family had owned a General Motor's dealership in Toronto for 57 years, most recently Plaza Pontiac Buick GMC, before the Detroit automaker decided to discontinue its Potiac, Saturn, Hummer and Saab brands, and shrink its dealership network accordingly.

The controversial move has spurred several lawsuits from disgruntled dealers, including a multi-party suit in Ontario that will be before the courts this fall. But Mr. Stein, like dozens of other dealers, has simply turned to another brand to fill his lot. He is now the proud owner of Plaza Kia Toronto Superstore.

"Let's just say, when they decided to drop the Pontiac brand, which was 85% of my business, I felt that joining one of the fastest-growing manufacturers, Kia, was a good idea," Mr. Stein said. "With our location, we had the opportunity for numerous brands, but we decided to go with Kia."

In all, Kia took over 15 GM dealerships slated for closure in Canada. Other Manufacturers, including Mitsubishi, even Chrysler, which emerged from bankruptcy protection last year alongside GM, jumped on the automaker's plans to close 240 of its dealerships across the country to make inroads into new markets.

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