GM to eliminate hundreds of Cadillac dealers

Posted: Jun 09, 2009
Filed under: Cadillac, GM, Industry News

Some Cadillac dealers may be surprised to learn that their dealerships will be terminated by Oct 31, 2010, when GM decides to reduce its dealer network to 3,500 dealers. It may be a bit strange since Cadillac is one of the four core brands that the ‘New GM’ will concentrate on.

According to LaNeve, GM wants to eliminate hundreds of Caddy dealerships in metro markets to make the brand’s per-store sales comparable to those of Mercedes-Benz, Lexus and BMW.

“Our current footprint of 1,400 Cadillac dealers, most of which are dualed, is out of sync with modern luxury automotive retail,” LaNeve told dealers in a report obtained by Automotive News.

LaNeve would not provide the exact number of Cadillac dealers that will be terminated. However, in order to meet a goal of a per-store sales that will match other luxury rivals, hundreds will have to go.

“Mercedes-Benz, BMW and Lexus outsell us with 250 and 450 dealers,” LaNeve said. “We have to address this and enable our large Cadillac dealers to do more volume.”

- By: The Daily Auto Editor

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  • ss
    This is among the most stupid Ideas put forth. Why would you expect a caddy buyer to drive from Perhaps Northern MN. to Mpls to buy a Caddy. There are No lexus or beamer dealer ships in Northern MN. Send this Luxury car buyer to Mpls and more then 1/2 the time he will come home without a caddy. Caddy is almost captive in rural areas for luxury. Stupid Idea....
  • kabluey
    They need some Cadillac dealers with a refined experience.

    I shouldn't be talking to the same salesman that sells Aveos and is missing his front teeth. This is also true with respect to the service experience at a Cadillac dealer, which is highly questionable as well.

    Have these guys not been to a Jaguar or Lexus dealer at all?
  • saddayinamerica
    So more dealers don't outsell those with less dealers? Hmm, maybe because people don't want ot buy a Caddy as much as they would buy a Mercedes or a BMW. So basically what they are saying is that 'all our cars suck but Caddy sucks little less."
  • emma
    Ha. good one! so wouldn't it mean less Caddy dealers would sell even less Caddy? Are they going to have us believe that less supply would bring up the demand? Maybe they should have realized that another variable in that equation is that they should build cars people want to buy first!!!
  • GMfan87
    umm have you ever taken economics? less supply does bring up demand ideally. pretty sure that's not what they're doing and certainly won't accomplish here. if you read what they say, they are slimming down the dealer network to be in line with industry averages. and anyone who says caddy sucks or that no one wants to buy them hasn't been in a caddy in the last 5 years...especially not the CTS.

    it is jaded perceptions such as the ones you guys displayed so perfectly that keep people from buying american cars in general
  • Neil
    So the one brand they haven't completely mis-managed and that actually makes a profit (outside of recession years) has been getting it wrong all along
  • Pat
    exactly! like what the hell were they doing before? WHY WOULDN'T THEY STUDY THEIR RIVALS AHEAD OF TIME!! even a 2 year old could run GM better than these idiots
  • Neil
    Pat Ilike to to desribe Government Motors as the "Homer Simpson School of Management"

    After every annoucement you just want to say, DOH!!
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