There are some big changes afoot in the world of Cadillac, including a range of all-new electric vehicles poised to arrive over the next few years along with various changes to the dealer network. Indeed, Cadillac dealers are part of the sweeping new changes, with the luxury marque offering its dealer network the option to upgrade to support the influx of EVs, or be bought out. And now, it looks as though just half of Cadillac dealers will continue to operate compared to 2008.
According to a recent post from Automotive News, roughly 150 of the existing 882 Cadillac dealers in the U.S. (as of January 1st) will opt to take the buyout offer, leaving roughly 700 dealers in operation for the 2021 calendar year. By comparison, there were some 1,400 Cadillac dealers in the U.S. during the 2008 calendar year, just prior to the bankruptcy filing for Cadillac parent, General Motors, in 2009.
But even with 700 dealers in operation, Cadillac will still have roughly twice the number of dealers as rival German brands.
As a reminder, Cadillac dealers were recently offered the option to upgrade their facilities and operations in order to support the sale and service of battery-electric vehicles. The upgrades come at a cost of about $200,000, which covers things like new tooling, EV charging stations, and employee training.
Alternatively, dealers unwilling to sell EVs could opt for a buyout offer which, according to some reports, ranges between $300,000 and $500,000. Other reports peg the value as high as $1 million. Dealers that take the buyout are given a portion of the money up front, with the remaining balance paid once the franchise has been terminated.
The decision to exit the Cadillac brand or upgrade to support EVs is not always easy and clear. However, fewer Cadillac dealers could help those that remain in terms of sales competitiveness compared to rival German or Japanese rivals.
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Breamworthy
I guess Cadillac should change the brand to Cascade and chop all models except Cascade
Norm T
With GM having over 500 engine and transmission combinations currently and when EV is fully implemented could be down to under 20 combinations the chance for revenue of repairs and services will be greatly reduced.
Greg
???
Alex Luft
I’m guessing Breamworthy’s comment is what happens when a troll drinks more than he should.
Greg
Mr. Luft:
I hadn’t wantws to say so….
(Merry Christmas and Happy New Year as well. Yhanks for maintaining this site. I’m surw it’s frustrating at times.)
Greg
Ouch. My spelling is off.
Quick Silver 1
Some of the smaller dealerships will take the buyout I am sure. One that is close to us really doesn’t support an inventory unless it is an CUV/SUV. Don’t take the Cadillac there for service either… I had a problem on my way to work and it took me right by them. Car was under warranty and there was no offer of a loaner and when I pressed the issue the GM replied that since I hadn’t purchased the car there they weren’t going to give me a loaner. Called my dealer, they flat-bedded me a loaner and picked up my car. They were 75 miles away, but I had the loaner in about 2 hours.
Just had my wifes’ Caddy there for routine service and check up for winter. They found some issues, had the car for 2 1/2 months with no updates unless I called and have had to take it back twice. My wife likes the service writer, so that was an uphill battle and I just gave up. Spent $4K. I hope they take the buyout!
Greg
Quick Silver 1:
It’s such dealerships that have contributed to Cadillacs current situation. I’m fortunate I live in a large Metro area and the dealerships here are fairly nice. In fact I just had some major engine work done on my 11 year old STS. It took 2 days. I was given a new XT5 to drive while work was performed. I received a “Thank You & Follow Up” text a couple days afterward too.
Quick Silver 1
The dealership where I buy sends birthday, anniversary and Christmas cards. We have become good friends with the general manager there. We gave even gotten gift cards for restaurants from them. There was a recall on my 2017 CT6. They called me, picked up the car and left me a new Escalade for my loaner. My CT6 was hand washed and detailed before they flat-bedded it back to me the next day. When we ordered our 2020 CT6 they sent me the form to look over before we went to order. While we were there they detailed my CT6. That’s customer service.
Greg
Very good!