GM scrapped plan to reshape its Cadillac dealer network in the image of Lexus

Article by Christian A., on August 26, 2010

To the sound of millions of General Motors Co. dealerships and customers breathing a sigh of relief, the carmaker has announced that it will no longer go through with a plan to cut the number of Cadillac franchises by two-thirds.

Previously, GM has said that it wanted to reshape its Cadillac dealer network similar to that of Lexus. This meant that from 1,422 dealerships on Jan. 1, 2009, there would only be about 500 left by the end of this year.

This lean network would be similar to import luxury brands, which only require a few hundred dealerships that focus on coastal urban markets.

It's becoming apparent that GM is reinstating dealerships to rebuild its small-town network. Automotive News interviewed several dealer representatives who said that 55 of their 75 clients that are to be reinstated are rejected Cadillac showrooms.

A big number of those Cadillac dealerships are located in rural areas or small towns. Ernie Manuel, president of the Fontana Group, financial consulting firm for dealerships, believes that GM has realized that terminating these dealers would not lead to increased sales since many loyal Cadillac customers would be left orphaned.

The 922 Cadillac franchises targeted for closure in the reorganization accounted for almost half of the 2,000 GM stores affected. Last year, GM planned to close 1,350 dealerships and another 650 franchises at dualed stores.

Dealer lawyers and consultants said that since GM's bankruptcy last June, the company has been pushing Cadillac sales in large metropolitan areas on the East and West coasts while closing dealerships in less populated regions. [via autonews]

Topics: gm, cadillac, lexus

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries