Officials at General Motors Corp. and Ford Motor Co. are warning dealers to stay out of

the "gray market" trade of funneling low-price Canadian vehicles back into the U.S. market, according to a Wall Street Journal story by Sholnn Freeman. But the two largest automakers said they have so far ruled

out following DaimlerChrysler AG, which this week decided to cancel the warranties on the affected vehicles.

Instead, GM and Ford have ordered their dealers to stop the traffic or face losing out on the supply of popular models. The dealers could also face demands from the companies for repayment of incentive money.

GM estimates that 6,000 to 7,000 of its new cars

intended for Canadians were funneled back into the U.S. last year. Ford said 5,800 of its vehicles returned to the U.S. this way.

DaimlerChrysler has significantly higher estimates than Ford and GM. The automakers admit the trade, which is legal, will be hard to stop because of the fat profits

involved.

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