On Cadillac Rooftops Closing.
This only makes sense when you look at the amount of legacy Cadillac dealerships operating as a boutique adjunct to the franchises of the business creating the profit.
At some point, the cost of keeping the business open just to keep the luxury brand name doesn't make sense any longer.
Cadillac is making it less painful for some dealers who could/should have cut the Caddy cord years ago.
Now for the bigger questions. Since most of these Cadillac organizations were not owned by larger groups due to their size, how many dealers will funnel these dollars into automotive retail in their communities? And for how many will this be the beginning steps end of the road for not only this franchise, but the start of the end of the road for the organization?
Dealers, you would do well to start strengthening your organization instead of letting it whimper off.
You will gather more attention and gain higher prices if you keep the structure and integrity of your dealership and its people held high.
We can help.
Foster Strategies.
Automotive's Leading Consulting Agency
https://www.linkedin.com/in/stevegreenfield416/
About 150 (17%) of Cadillac's 880 U.S. dealers have decided to part ways with Cadillac, rather than invest in costly upgrades required to sell electric cars, indicating some retailers are skeptical about pivoting to battery-powered vehicles.
GM recently gave Cadillac dealers a choice: Accept a buyout offer to exit from the brand or spend roughly $200,000 on dealership upgrades—including charging stations and repair tools—to get their stores ready to sell electric vehicles.
The buyout offers ranged from around $300,000 to more than $1 million. About 17% of Cadillac’s 880 U.S. dealerships agreed to take the offer to end their franchise agreements for the luxury brand, these people said.
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