General Motors reveals a plan to cut hundreds of dealers from their brand portfolio. This does not spare Cadillac dealers across the nation especially those in the metros. The Cadillac dealers and other brand distributors will be informed by the end of October 2010, this is also when the most of the dealer agreements will expire.
The decision to slash the Cadillac dealerships comes after studying the position of the brand in the market. Checking the luxury segment of the market, rivals like Lexus, Mercedes-Benz, and BMW are selling more units with fewer dealerships.
GM plans to adapt the strategy of their competition and increase the sales stats. Lexus dealers sold about 1158 cars on average in 2008 with only 226 franchises. Cadillac, on the other hand, has 1400 dealers but a store sold on average only 110 units.