Cadillac Boss Wants Boutique Stores

Luke Vandezande
by Luke Vandezande

Cadillac CEO Johan de Nysschen is trying to solve a puzzle that bested years of executives before him.

He will speak to dealers at the 2015 National Automobile Dealers Association conference in San Francisco this Saturday. The Detroit News reports that de Nysschen hopes to convince them to invest in smaller showrooms that would focus on offering premium services to customers while only keeping a few vehicles on display at a time.

Cadillac currently has 928 dealer franchises in the U.S., hundreds more than other global luxury automakers like BMW and Mercedes-Benz have in the country. de Nysschen told the Detroit News that he doesn’t plan to reduce the number of dealers – already down from 1,422 before GM’s 2009 bankruptcy – but that he wants to encourage franchises in smaller markets to consider smaller retail spaces.

The Detroit News story highlighted the fact that Cadillac’s bulky dealer network sells far fewer vehicles on average compared to the companies it hopes to compete directly with. Following the story’s publication, Cadillac released an official statement about the plan for smaller locations.

“Cadillac’s U.S. network today features a core of approximately 200 flagship, stand-alone dealerships. Its concept going forward is that core of roughly 200 flagship stores will be complimented by 700 smaller, boutique locations. The boutique concept would feature exclusive Cadillac consumer touch points, highly trained sales and service staff and luxury amenities.”

Earlier this month Cadillac unveiled the new CTS-V powered by a 6.2-liter V8 that sends 640 hp and 630 lb-ft of torque through an eight-speed automatic transmission for a claimed top speed of 200 MPH. That debut bookended the debut of its smaller ATS-V coupe and sedan that are powered by a 3.6-liter twin-turbo V6 that makes 455 hp and 445 lb-ft of torque. Combined sales in 2014 for the ATS and CTS in 2014 sank by 13.7 percent. Both the hardcore ATS and CTS models will arrive for the 2016 model year along with the new CT6 rear-wheel drive full-size sedan that will be built at GM’s Detroit-Hamtramck assembly plant.

[Source: Detroit News]

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Luke Vandezande
Luke Vandezande

Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.

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