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Bryan
Hagerty Employee

Cadillac draws a line in the sand for its dealerships

General Motors and Cadillac have given their dealer network notice: get on board and make a six-figure investment into the marque’s all-electric future, or this train’s leaving you at the station. If dealers take the latter route before the November 30th deadline, they’ll have the option of a buyout.

 

Read the full news on Hagerty.com:

https://www.hagerty.com/media/news/cadillac-draws-a-line-in-the-sand-for-its-dealerships/

 

8 REPLIES 8
spoom
Technician

Interesting on many levels, but since the world politic has already decided that everybody will soon sell EVs or NoVs, all this really is, is a giant tax from GM on their Cadillac Division dealers. Certainly, it's just the first one, gotta wonder what they're going to hit the rest of their brands' dealers with?

chrisawyer
Pit Crew

I couldn't have said it better.
compaqdeskpro
Intermediate Driver

The only Cadillac anyone wants and will ever want is the Escalade, SRX (which should be called Escalade Sport), maybe an XTS to make hearses out of. Every other model has been flop after flop, doubly so if its electric.

Sajeev
Community Manager

The XTS is history, by the way. 

hyperv6
Gearhead

GM has had too many dealers for years. In many markets Cadillac had 3-6 dealers per every Benz or BMW dealer. 

Less dealer will make for healthier dealers and better all around service. I expect many of the hang on Cadillac dealer at Chevy dealerships will vanish with this offer. 

I am not a big EV fan but I understand the future and see what GM is doing. This is a deal that looks like they got it right. They hold a strong tech arm that can not only supply their vehicles but also be a supplier to others that can’t convert to EV on their own financially. 

For sure the next ten years will be historic as we will see more change than we have seen over the last 100 years. 

 

spoom
Technician

to hyperv6 (site almost never lets me just click "reply")

I don't disagree, though it might be more correct to say that GM has sold too few cars for years. The big three turned into the big yawn, as far as market share, and they never found a way to send the appropriate amount of dealers to Mexico and elsewhere when they sent the jobs. For decades the domestic automakers and the unions took turns digging the giant holes they then jumped into, stuck in the pit of impossible math. Final score was to move jobs out of the country to support the executives,  retirees, and retirees to be in the style to which they'd become accustomed. Living many years in a city with an auto plant, I grew weary of stupid remarks like, "we'll show them who runs this place", but I don't have to listen to those guys anymore, because the plant was leveled years ago. Now I get to listen to guys who took buyouts bragging about how awesome it was under the UAW system, while their kids demand $15/hr. at their fast food jobs, along with free daycare and healthcare for THEIR kids. As horrible a person as Henry Ford was, even HE knew you couldn't sell a million cars to a million jobless people.

Swamibob
Instructor

Good Luck General, with your all EV future.  🙂  Makes me think of the all 4-cylinder or 4 and V6 future from the 80's and early 90's.  I don't think that worked out very well either.

 

I realize there are very few dealerships that are only one brand and fewer still that are only one dealership, but If I was a Cadillac dealer I'd be looking to Lincoln, Lexus, Mercedes, Audi or BMW for my future.  Cadillac made an impressive comeback, some years ago, but I think this will create the need for an even more impressive comeback, in about ten years.  🙂

spoom
Technician

FWIW, I recently saw this posted on another (GM-based) BBS;

The buyout offers ranged from around $300,000 to more than $1 million, the people familiar with the effort added. 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.
Most dealers who accepted the buyout also own one or more of GM’s other brands—Chevrolet, Buick and GMC—and sell only a handful of Cadillacs a month, the people familiar with the effort said