General Motors Avoids Paring Cadillac Dealer Network

March 15, 2010
Although it originally planned on paring its Cadillac dealer network to mirror those at competitive luxury brands, General Motors has reversed its decision and is reinstating dealers across the country.
Prior to bankruptcy, GM had 1422 Cadillac dealers, but aimed to trim that figure by two-thirds. Roughly 922 showrooms were slated to close, but purging those dealers from the network would have left the brand with a sales and service network built around urban coastal regions.
“We think that GM realized terminating these dealers would leave a lot of loyal Cadillac customers orphaned and not produce a material benefit in the form of increased sales,” Ernie Manuel, president of dealer consultancy firm The Fontana Group, told Automotive News.
Although GM has said it will reinstate Cadillac dealerships across the country, it has not indicated precisely how many franchises will be restored.


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