70% of Cadillac dealerships to close

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Thread: 70% of Cadillac dealerships to close

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    70% of Cadillac dealerships to close

    GM cutting most Cadillac dealers
    The Business Journal of Milwaukee - by Rich Kirchen

    General Motors Corp. is dropping the franchises of 70 percent of Cadillac dealerships nationwide and southeast Wisconsin is no exception, leaving only two area dealerships confirmed as continuing beyond 2010 — Metropolitan in West Allis and Crest in Brookfield.

    Metropolitan Cadillac, in fact, is running commercials urging customers whose dealers are closing to switch to its dealership.

    “My understanding is that there are a lot of Cadillac stores closing,” said Metropolitan president Max Stephenson. “The only two that are staying open are Metropolitan and Crest.”

    General Motors will not disclose the identities of dealerships that are closing. Only one area Cadillac dealership has identified itself as dropping its Cadillac status: Amato Cadillac in Glendale, which Aug. 21 became a Nissan dealership.

    “We had seven Cadillac dealerships in our zone — we were very over-dealered,” said owner John Amato.

    Don Schultz, a sales manager at Crest Cadillac, said the dealership at 12800 W. Capitol Drive is surviving as a new vehicle franchise but declined further comment.

    Metropolitan and Crest ranked as the top two dealerships for new Cadillac car sales in 2008 with a 31.3 percent and 23.8 percent market share, respectively, according to Reg-Trak Inc., Waterloo. In the first half of 2009, the two dealerships again led with 25.3 percent for Metropolitan and 18.6 percent for Crest.

    Not all Cadillac dealers that are losing their franchise will follow Amato’s quick exit. They have until October 2010 to close, but will not receive any new vehicle inventory from GM between now and then.

    GM spokeswoman Susan Garontakos said the company plans to reduce the number of Cadillac dealers nationwide from about 1,400 to about 400 by the end of 2010.

    GM evaluated dealerships’ sales figures, capital structure and customer service record, Garontakos said. Dealers can appeal GM’s actions, but the company’s executives in August ruled on the appeals, leaving little recourse at the moment for those who lost appeals, she said.

    The automaker believes reducing the number of dealerships will enable GM to more effectively compete with BMW, Lexus and Mercedes, Garontakos said. Those other luxury car makers have between 200 and 400 dealerships each nationwide, she said.


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    Re: 70% of Cadillac dealerships to close

    well what about zones like mine for instance an immensely rich and populated zone and we have one dealer in a 15 mile radius?

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    Re: 70% of Cadillac dealerships to close

    I can think of two Cadillac dealerships in the Cincinnati area...wonder which one goes...
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    Re: 70% of Cadillac dealerships to close

    Those remaining had better be top-notch: premises, showrooms, service area, people, everything.

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    Re: 70% of Cadillac dealerships to close

    I still think that the issue is how and where they opened them, to many in certain areas not enough in others. Just like the camaro scenario now theres a crap load on lots here and scarcity of them in other areas. why dont they close some while opening others in regions that dont have enough? PS K-1 is right our caddy dealer is disgraceful, compared to lexus, Mercedes around here crap even VW has a nicer presence and showroom etc

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    Re: 70% of Cadillac dealerships to close

    Those remaining better spice up their premises and give a truly luxurious reception to their customers.

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    Re: 70% of Cadillac dealerships to close

    lexus bmw benz better be on there toes cuz caddy is coming and its only going to take a few years to be on top

    now they dont need to sell 100k cars like the otheres do but they will have the best car in the segment

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    Re: 70% of Cadillac dealerships to close

    The two Cadillac dealerships that I am aware of in South Florida are really nice.

    Bayview Cadillac in Fort Lauderdale used to sell Hummers but the closed that franchise down a while ago and now the space is pure Cadillac. Braman Cadillac in Miami shares space with BMW/Mini, Bentley and Rolls Royce.

    I assure you those two dealerships aren't going anywhere . . .

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    Re: 70% of Cadillac dealerships to close

    Quote Originally Posted by Simon says View Post
    Braman Cadillac in Miami shares space with BMW/Mini, Bentley and Rolls Royce.
    Even the best can stand to improve:



    WHY A GMC Envoy photo on a Cadillac dealer website??

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    Re: 70% of Cadillac dealerships to close

    Wow. Thats intense. I'm guessing that the only two Cadillac dealerships in San Antonio will stay open. They are on opposite ends of the city. One is a downtown dealership, why the other is smack in the new northern, affluent part of town. But San Antonio's downtown is booming, so the downtown dealership is also well located.
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    Re: 70% of Cadillac dealerships to close

    Are Van, Superior or Bloome Cadillac stores in Kansas City scheduled to close?

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    Re: 70% of Cadillac dealerships to close

    Quote Originally Posted by ARCANGEL View Post
    well what about zones like mine for instance an immensely rich and populated zone and we have one dealer in a 15 mile radius?
    Seriously, how many Cadillac dealerships would you like to see in a 15 mile radius? Cadillac is not a high volume brand and the customers that do buy Cadillacs will likely be willing to make the drive to the dealership to check out the new vehicles.

    Do you think a Starbucks-like approach of having a dealership on every corner will generate more sales?

    I agree with your other post about having dealerships located in strategic locations. That is more important than quantity. In my city we have an automall. The automall has been in place for many years and is currently expanding. It houses the following brands:

    Chrylser/Dodge/Jeep
    Ford
    Kia/Hyundia
    Infiniti
    Land Rover
    Mitsubishi
    Saturn/Saab (I don't know what has become of this dealership)
    Nissan
    Bentley/Aston Martin
    Mercedes Benz
    BMW
    Lexus

    The closest GM dealership is a Cadillac/Chev dealership which is about 5 miles away (which can easily average approximately 30 minutes driving time.) There is nothing wrong with the Cadillac/Chev dealership as it is a brand new location which was put up about a year ago. The biggest down fall is that it is isolated. There are no other dealership around. A customer has to go out of there way to pay them a visit. The dealership should have paid the extra dollars and built in the auto mall which probably would have attracted far more customers and put them right next to the major competitors.

    I think this is a prime example of how the quality of the location is very important.

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    Re: 70% of Cadillac dealerships to close

    There are 4 in the populated areas of Puget Sound and probably more around the outer areas. Only one though in what could be called "Seattle proper". I suspect some of the smaller ones will lose their franchises. And I think 4 is too many for this area. But because it's so spread out geographically (there's always a mountain or a body of water between you and where you need to go) it would be hard to cover it all with fewer.
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    Re: 70% of Cadillac dealerships to close

    The dealer closest to me closed. Not the best showroom but very good to work with. My father bought his CTS from them, even though he lives 700 miles away. They provided great service, and were IMO the best in the area. I was sad to see them go.
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    Re: 70% of Cadillac dealerships to close

    Quote Originally Posted by Buick61 View Post
    Even the best can stand to improve:



    WHY A GMC Envoy photo on a Cadillac dealer website??
    Jesus Christ in heaven!!! I just went to their website . . . for their sake I hope that their clientele is not internet savvy because that website is an embarrassment today . . . actually it looks like it was an embarrassment 10 years ago.

    Norman Braman should have is managers studying my Mercedes dealership until their eyes bleed.

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