General Motors to Cut Number of Cadillac Dealers

General Motors to Cut Number of Cadillac Dealers

The long list of General Motors dealerships got a lot shorter recently, but it will get shorter still as the company has made known plans to reduce the number of Cadillac dealerships in its network.

“Our current footprint of 1,400 Cadillac dealers, most of which are dualed, is out of sync with modern luxury automotive retail,” said GM’s sales boss Mark LaNeve at a dealership conference last week.

Those 1,400 dealers sold an average of 110 cars last year. Other luxury brands operate on almost the reverse, with Lexus selling 1,158 cars on average from just 226 dealers.

As many of those dealers are paired up with other GM brands it often means that there are Cadillac dealers in regions that might not normally sustain such a business. Despite that, GM’s plans are to focus on cutting dealerships in urban centers where customers have another Caddy retailer in close proximity.

The number of dealers to be cut is reported to be significant and it would have to be for the Cadillac brand to be as streamlined as its German and Japanese competitors.

Based on the numbers, the amount of Cadillac dealership closings could be as many as 700. After the recent announcement that GM would cut 1,124 dealers from other parts of its company, followed by news that 405 Pontiac, Saab, Saturn and Hummer dealerships would close, the total number of GM dealerships left totals 4,300 – that’s 700 more than what GM listed in its viability plan to the U.S. government.

There is no word on how much advance notice the terminated dealerships would get but the deadline for closures would be the same as with the other dealerships – October 31, 2010.

[Source: LeftLaneNews]