Chevrolet had differences with Durant over the car's design, and in 1915 sold Durant his share in the company and started McLaughlin's Company in Canada building Chevrolets. By 1916 the trading of Chevrolet stock for GM Holding stock enabled Durant to repurchase a controlling stake in General Motors, and by 1917 the Chevrolet company that Louis had co-founded was merged as a company into General Motors after the outstanding Chevrolet stocks were purchased from McLaughlin in 1918. The McLaughlin Car Company then merged with his Chevrolet Motor Company of Canada Ltd. to become General Motors of Canada Ltd. in 1918, prior to the incorporation of the General Motors Corporation in the U.S. when General Motors Company of New Jersey dissolved.
By the mid-1910s, Louis Chevrolet had shifted into the racing car industry, partnering with Howard E. Blood of Allegan, Michigan, to create the Cornelian racing car, which he used to place 20th in the 1915 Indianapolis 500 automobile race. In 1916, he and younger brothers Gaston and Arthur Chevrolet started Frontenac Motor Corporation, designing and producing a line of racing cars. They became well known for, among other things, their Fronty-Ford racers.