Poor Cadillac can't catch a break, sales are down 5.9% this year while other luxury car companies are having record numbers. The problem, according to General Motors, is not the lack of competitive product, because Caddy is making some damn good cars. The problem is the dealerships.
According to a post at the Motley Fool, Cadillac must undergo a serious strategy shift in the way they connect with customers in order to steal sales away from the likes of BMW, Mercedes, and Audi. That is why GM hired former Audi executive Johan de Nysschen who knows what it takes to bring a brand up from the ground and take on the established players.
The first problem is the number of stores. There are currently 925 Cadillac dealerships nationwide. That is about three times as many dealers as BMW. This makes the brand less exclusive and less profitable in each location.
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