Will Cadillac Dealers Bear the Brunt of Closures?

Though Cadillac will survive GM’s restructuring as one of its core brands, its dealership network may be drastically reduced, according to GM sales head Mark LaNeve. When compared with competitors like Mercedes-Benz and Lexus, Cadillac appears to have an unsustainable number of dealers.

With 1,422 dealers nationwide, Cadillac has more than six times as many dealers as Lexus and four times as many as Mercedes. In 2008, the average Cadillac dealer did one-sixth the business of the average Mercedes dealer and one-tenth of the average Lexus dealer.

One of GM’s goals in restructuring will be to bring the number of Cadillac dealerships more in line with those of its competition. This likely means hundreds of closures when their franchise agreements are up Oct. 31, 2010, with most of these closures coming in metropolitan areas where the dealers are already stepping on each other’s toes.

Under Fire: GM Targeting Metropolitan Cadillac Dealers for Closure (Automotive News via Autoblog)

Comments

Good facts. I'm gonna wait for the next update on this.

Good facts. I'm gonna wait for the next update on this.