Cadillac Offering Walk Away Buyouts To 40% Of Dealerships

Cadillac Offering Walk Away Buyouts To 40% Of Dealerships

Cadillac is offering 400 U.S. dealers buyouts of up to $180,000 to “gracefully exit” the business, the General Motors Co. luxury brand confirmed Friday.

The voluntary buyout offers start at $100,000 and are targeted at dealers who sell fewer than 50 Cadillacs a year. Of those 400 dealers, all but six have other GM franchises, a spokesman said. For 290 dealers, Cadillac represents less than 10 percent of their overall business.

The targeted dealers represent more than 40 percent of the brand’s 925 U.S. dealers.


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MDarringerMDarringer - 9/26/2016 1:49:15 PM
+4 Boost
The majority of the dealers affected have a Cadillac sign and some Cadillacs on the lot. They are not real dealers. Putting Cadillac into stand-alone dealers along with Corvette as a brand is the ticket.


vdivvdiv - 9/26/2016 4:57:25 PM
+2 Boost
What about Buick/GMC?


MDarringerMDarringer - 9/26/2016 5:16:27 PM
+4 Boost
@vdiv The plan is to make Cadillac stand-alone in much the same way BMW and Mercedes stand alone. Currently, Cadillac is sometimes co-branded with Chevrolet, sometimes with Buick/GMC, and sometimes as Cadillac only.

Unlike Genesis, Cadillac is an established brand and co-branding it is detrimental.

Co-branded dealers that wish to continue as Cadillac dealers are being pressured to make Cadillac completely its own dealership and not just a cordoned-off section.


vdivvdiv - 9/26/2016 7:37:14 PM
+1 Boost
That makes sense, thanks.


valhallakeyvalhallakey - 9/27/2016 2:14:01 AM
+2 Boost
Agreed on stand alone dealers for Cadillac, however I would leave the Corvette with Chevrolet, Move the new mid engined platform Corvette to Cadillac, come up with a good name and keep making front engined ones for Chevrolet. Too much history there to move it to Cadillac. On the other hand I would combine all the other brands under GM, resurrect and use the existing big names from all of them as the opportunities arise. Keep GMC as primary a working truck, SUV, hard core off-road brand. So Cadillac = Luxury, GMC = Trucks/Offroad, GM = everything in between.


TomMTomM - 9/27/2016 7:48:32 AM
+1 Boost
In major metro areas - stand alone Cadillac Dealers MIGHT be logical - but there are still lots of areas of the country where a stand alone Cadillac dealership simply cannot sell enough cars to justify the cost - so sharing Service Facility with say Buick - while having a separate show room (Even if it is at the other end of a building from other cars) for Cadillac would be a better choice.

Cadillac does not currently have the product to support a separate facility in many areas - and Cadillac will not have the product for YEARS.

AS far as changing to Cadillac/GM - I believe that the current Chevy, Buick/GMC - and Cadillac separation is fine. Making a separate Corvette store is the same as the Cadillac - it will need more than a couple of cars - and imagine a Corvette SUV (?).


MDarringerMDarringer - 9/27/2016 8:52:10 AM
+1 Boost
@TomM as usual you don't know what you're talking about. The cost for a stand-alone dealership isn't as prohibitive as you might seem to think and most Cadillac franchises are also owned by companies that retail other GM lines. Thus, Cadillac is not their sole revenue stream. Moreover, GM is putting money behind the stand-alone concept so dealers will not have to shoulder 100% of the cost..

Cadillac has sufficient product to stand alone and once the other crossovers arrive, the store will be more lucrative.




MDarringerMDarringer - 9/27/2016 6:55:53 PM
+1 Boost
And the XT5 shares a LOT in common with the Equinox...your point??


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