Cadillac will reabsorb 400 to 500 franchises that it rejected during the bankruptcy of General Motors Co. in 2009 but new sales chief Kurt McNeil said that it will have to keep a key part of the original plan.
Cadillac initially wanted to rebuild sales with only about 500 dealerships in large metro markets but in an interview days ago, McNeil said that all dealerships, both big and small, should be able to provide the customer service of a big-city store.
Arbitrations and settlements are expected to end this summer. Many of those that will be taken back into the company are small dealerships.
Last March, McNeil had taken over as Cadillac's US sales chief during GM's sales and marketing shake-up. He said that "drastic changes" will be made but the company would now focus on continuing to improve its network.
At the start of 2009, Cadillac had 1,400 stores so even with the reinstatements, it would still have a dealer network that's leaner than before.
McNeil said that it's possible that there will be further reductions. He also said that the company would have to resolve the issue of having too many stores in a metro area. [via autonews]