The Cadillac dealer network count will total 560 stores in the Unites States by the end of 2021 as the luxury marque seeks to right-size its North American retail footprint.
According to Reuters, Cadillac has almost completed its dealership restructuring plant and is on track to have about 560 active dealers in the U.S. before the 2022 calendar year. Rory Harvey, head of global Cadillac, said that the luxury marque had 920 active storefronts as recently as three years ago. In late 2020, Cadillac began to thin out its scores of active U.S. dealerships to prepare for the launch of its upcoming lineup of battery-electric vehicles, such as the 2023 Cadillac Lyriq.
As part of the restructuring plan, Cadillac asked that all active dealers make a sizable investment to prep for the arrival of the new EVs and accompanying technologies. The investment would be allocated for EV charging stations and renovated service bays. Dealers who opted not to make the investment – which often surpassed $200,000 – were offered buyouts ranging from around $300,000 to over $1 million, therefore closing their Cadillac storefronts.
As of December 2020, approximately 150 individual Cadillac dealers opted for the buyout, dropping the store count from 920 units to 770. Since then, more dealers have accepted buyout offers, shrinking the current total to under 600. The luxury marque has spent $274 million on buyouts thus far.
Despite this, Cadillac retains more physical storefronts in the U.S. than any other luxury auto brand. Cadillac has also opted to open new dealerships in markets typically associated with high levels of luxury, such as Beverly Hills and San Francisco, where consumers may be more receptive to luxury EVs and their associated price tags.
Though Cadillac’s network of brick and mortar dealers may be shrinking, the advent of online sales tools have helped bolster sales. The Cadillac Live service launched in 2019, enabling potential buyers to interact with a Cadillac representative and take a tour of new products and offerings from the comfort of their own homes. Customers on the more tech-savvy side may find this service particularly helpful, as they can shop for a new vehicle on the go from a computer or mobile device without setting foot in a dealership.
Want to stay up to date on all things Cadillac during the electric revolution? Then be sure to subscribe to Cadillac Society for more Cadillac dealer news and around-the-clock Cadillac news coverage. We also invite you to join the latest discussions in our Cadillac forums.
James Sawyer
It’s certainly interesting that Cadillac’s dealers are shrinking compared to what they once had
Charlie Barnett
Cadillac is becoming just another fish in the sea. My how the “Standard of the World” has fallen. Hope it doesn’t join the other fish in the sea such as Sears, Pan Am, Howard Johnsons, K-Mart, and its late siblings Oldsmobile, Pontiac, Hummer, and Saturn. Just a ongoing Saab story at General Motors.
Doug Nicoli
It’s nice to hear that Cadillac has finally seen the light and is opening dealerships in BH & SF along with a few others in high income areas that is their bread and butter. How can you sell a luxury brand without outlets in their targeted areas? Very poor planning by the corporate suits who have managed to take down Americas premium brand.
Frank Ricciardi
This is really not good news to me. The Cadillac dealership I’ve been doing business with for the past several years, since moving to Gainesville, Florida has taken the buyout. When the leases are up on my 2020 CT6 and my 2021 XT5 I will be forced to drive an hour to another Cadillac Dealership or switch brands. Its too bad because I have been a loyal Cadillac owner for more than 40 years and have bought or leased 18 new Cadillacs during that time. Not sure I want a BMW or an Audi, but I’m also not sure I want to drive an hour to buy a car or get it serviced.
Richard Bovie
I live in a rural area in Northeast North Carolina where there was only one Cadillac dealership. The next closest is in Virginia approximately 50+ mile away. The convenience of a local store is now gone. The new Cadillac ideology does not set well for me and I’m sure many other Cadillac owners. I will be hard pressed to travel 100+ miles roundtrip for service or sales. This was my first Cadillac and is probably my last. I’m getting older and the loss of convenience will play heavily in my next car purchase.
Alex Luft
Richard – are there BMW, Mercedes-Benz, or Audi dealers in your area? I’m guessing there aren’t, which explains why there’s a Cadillac one either.
Charlie Barnett
I am a GM retiree and contacted dealers in North Dakota, South Dakota and Montana starting 45 years ago. I watched the small dealers disappear and strangely Toyota and Nissan moved in. As Bill Clinton said “I feel your pain” but I really mean it sincerely. Remaining close to the industry after retiring I do know most of the premium brands will work with you via telephone or internet, take your car in trade, deliver you the car you purchase, and supply you with a loaner when yours needs service. Not as good as driving to your local dealership but not total abandonment either. I wish you well.