Cadillac Blog » Corporate http://www.cadillacblog.net Cadillac News - Cadillac Autos - Classic American Cadillacs Thu, 26 Jan 2012 14:39:49 +0000 en hourly 1 http://wordpress.org/?v= Hundreds of Cadillac dealers to be cut from GM portfolio http://www.cadillacblog.net/2009/06/hundreds-of-cadillac-dealers-to-be-cut-from-gm-portfolio/ http://www.cadillacblog.net/2009/06/hundreds-of-cadillac-dealers-to-be-cut-from-gm-portfolio/#comments Tue, 09 Jun 2009 00:30:47 +0000 Laszlo http://www.cadillacblog.net/?p=50 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.

The figures of Cadillac also have similar ratios compared to the dealerships of Mercedes and BMW. Top executives of the brand admit that Cadillac is out of sync in terms of retail in the luxury segment of the car industry.

Most likely, the car manufacturer will demand higher volume of sales from the large dealerships that they have. They believe that will be the key for the survival of the brand and the only way they can cut their operations cost.

The exact number of dealers that will be severed from the system has not been revealed yet. Basing on available industry figures, it seems that Cadillac will need to axe hundreds of dealers to match the performance figures of their rival foreign rivals.

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