Cadillac president Johan de Nysschen has said that dealers need to “step up” to help him execute his long-term growth plan, but some dealerships are worried that they will lose their franchises while Cadillac tries to consolidate its dealer network in urban areas.
“If I don’t do a better job with Cadillac and start offering customers a true luxury experience, I think [de Nysschen] could make life uncomfortable for me,” says SC-based dealer Claude Burns, who averages fewer than 10 new Cadillac sales a month.
Cadillac’s German competition have two-thirds fewer stores and outsell the average Cadillac dealership 5-to-1, according to Automotive News.
de Nysschen has yet to issue an imperative that would require a dealer such as Burns to build a new showroom. About half of Cadillac’s dealerships have been remodeled in recent years under a broader GM facility program, with another 35 percent with projects planned or underway.
However, a Cadillac dealer who recently returned from a Cadillac dealer gathering in Las Vegas wasn’t keen on any expansion plans, instead calling Florida-based lawyer Richard Sox. In the past, Sox has represented Cadillac dealers targeted for termination during GM’s bankruptcy five years ago. Sox claims the dealer is on the outskirts of a large urban area and must compete against several bigger Cadillac stores.
“He feels like there’s a good likelihood that he’ll be targeted as Cadillac looks to reduce its dealer count,” says Sox.
de Nysschen told Automotive News last month that he will “be asking our dealers to step up to the plate” to give the Cadillac showroom experience a competitive edge and help position the brand “at the very top of the premium sector.”
“It’s very clear to me that many, many dealers already have risen to the challenge. On the other hand, when those customers engage us in our dealerships, we cannot afford that the experience is anything other than confirming that this is a first-class brand. And not all of our dealers are there.”
Comments
(“If I don’t do a better job with Cadillac and start offering customers a true luxury experience, I think [de Nysschen] could make life uncomfortable for me,” says SC-based dealer Claude Burns, who averages fewer than 10 new Cadillac sales a month.) Yes my GM Peeps, he Actually said this, that’s why he only Sales 10 a Month, he treats his customer as if they was at a Yugo(Defunct) Dealership, he’s Scared cause deNysschen is gonna Force him in doing his Job, c’mon, next time have someone professionally write your rebuttal down before you look like an Imbecile whining about how you Treat your Luxury Buyers as Used Car Shoppers!!!!! 😉
I think some of these dealerships need to step up to the challenge from their end too in order to help get Cadillac to a better place on the world stage. But then again if remodels etc. are required I think the manufacturer should help out more if needs be financially. If dealers are jerks and not giving out the true Cadillac type of experience then yes they should have Hell to pay.
Ok what the hell is “Cadillac experience”?? Not to directly hurt you guys but the comments on this fourm are sooo stupid. Cadillac is garbage. GM is garbage. It’s the truth. You guys devote your time to actually comment and suggest things to a company that you guys receive ZERO financial gain from?! Also, stop falling victim to GM’s marketing scheme!!!!!!!!!! A Caddy drives no better than a semi fully loaded 2014 Malibu! But costs 40k more!!!! Stop falling into GM’s trap!! They don’t care about you! Look at their garbage products being recalled every day! Look at the things the customers have to deal with at the dealers when trying to get their car fixed under the recalls!!! Think of the people that died, deaths that GM could have prevented but failed to because their profits kept growing!! They do not Care, why do you? Why do you continue to purchase their products? I will never.
Well, don’t buy their products then! As far we are concerned, you are reaching without logic and trolling.
@johnls_39, Gigg is just an Idiot Lincoln Moron who just found that it’s not a Luxury Brand so Ignore this Fool!! 🙂 🙂 🙂
You are kidding he is a Lincoln idiot.
They are rare as most people have found out that most of their cars are just expensive $60K Taurus. Ford fools few anymore.
Oh well he may still be revered at the Trailer Park Rec hall. LOL!
I know GM doesn’t care about me. NO corporation does. I never needed you to tell me that.
But I’m a luxury consumer. I want things that other can’t have as easily, or to have products who’s quality and features are far removed from contemporary products. At the moment, I’m discriminating as sifting through the finer single-malt Speyside and Islay Scotches. When I’m done I won’t ever have a reason to pick up a blended Jack Daniels or Crown Royal, no matter how cheap they are.
A luxury consumer is someone who has taken the time and effort to sort out and identify what makes something better than another. It’s NOT the price that matter, because luxury products are bought on emotion and the personal satisfaction and experience that they give to the owner.
Is it marketing? It does play a role, but then again, the kind marketing used to promote a luxury product is difference than that of a common product. As a luxury consumer, I KNOW the difference between a Cadillac and the “semi fully loaded 2014 Malibu”. At most, it would ONLY be the XTS, but the wheelbases aren’t even the same, so you’re wrong.
For someone who comes to GMA to desultorily spew out a malformed understanding of what a luxury product is, you should have minimally understood luxury as a concept BEFORE you assumed that it was just higher price tag that hangs on the product. You can quantifiably tell the difference between a CTS and a Malibu. You can know the technical differences. You can know what separates a $100 bottle of Lagavulin from pre-mixed Jack D and Coke.
Hell, someday you may even become a luxury consumer and not even know it. When it happens, it’ll mean that the ordinary stuff simply isn’t good enough for you, and that’s perfectly fine!
I’m not going to down vote you because you simply didn’t understand. Chalk it up to ignorance; not willful ignorance, and in the future raise your standards to demand something better. I anit’ even mad son.
that comment just shows what kind of a mindless idiot he really is, very misinformed and uneducated.
As for Cadillac GM needs to get a better handle on all their dealers as they have too many and they have many under performing dealers not just in sales but service. The way the laws are written it is difficult to cull the poor dealers.
The fact is with Cadillac they need to limit the number of dealers as the Volume of Cadillac will be limited but the profits per car will be increased. This only works for fewer than more dealers.
One dealer for most metro areas and larger areas like NY or LA could see 2-3. Right now they have much more than that. Here alone in the Akron, Cleveland and Canton area we have 5-6 alone and with Audi we may have 2-3. BMW 3-4 Benz about 3
I can tell some here have never worked for a dealer and seen the other side of GM. I have 36 + years of dealership experience and I can tell you that sometimes the other side of GM it isn’t pretty. Remember a quote from Mr. Durant, “GM is not in the business to make cars, it is in the business to make money.” With that as a filter you will see decisions made in the past and future and understand. It is really sad that the upper management team doesn’t truly understand “customer service”. I have seen GM turn down warranty repairs that were TRULY defects from GM and the dealer eat most or all of it to take care of a “good” customer. I have seen marketing make stupid decisions that actually helped other manufactures sales. I have seen them make bad decisions in the past. So get off your “all dealers are bad” rant. I have seen customers outright lie to service and sales departments. No one is perfect especially General Motors. GM’s decision to cut dealers only helps the other manufactures. I have worked in big urban dealerships and small town dealerships. I have heard customers in small towns say they do not and will not drive to the big city to purchase and repair their vehicles. I have heard stories where they actually switch brands so they didn’t have to go the big city. But GM execs think they are smarter than their customers. They need to spend some time in the trenches to truly understand what their customers are willing to spend money on.
I don’t care if you’ve had 36 year working within dealerships. If you’re unwilling to do as instructed at the behest of the consumer’s best interest, you are worthless. Your anecdotes are hot air.
“I have heard customers in small towns say they do not and will not drive to the big city to purchase and repair their vehicles. I have heard stories where they actually switch brands so they didn’t have to go the big city. But GM execs think they are smarter than their customers.”
Well, the execs ARE smarter than your “traditional Cadillac buyer”. The trad buyer doesn’t even have the wherewithal to live and work where luxury consumers congregate. Midwest small-town Cadillac dealership is not a place where luxury consumer buy cars, much less visit. It doesn’t matter if grandpa is trading in his LaCrosse plus $10K for an XTS, he’s not a luxury consumer as he’s not embodying the luxury of hedonism. You’ll find that people where you would expect them, in the world’s top-tier cities.
If a dealer can’t do their job properly and sell cars to society’s top 5% (as Cadillac is intended to court such people), then GM has every right to cull the insubordinate dealers that are incapable of meeting their marketing strategy.
I have already seen the consolidation of Cadillac dealerships in my home town . The Cadillac dealership thatt has been owned by one person or company for decades has been sold to a group that ownes several Cadillac dealerships in Michigan , Ohio , Indiana and Wisconsin . You can also see it in their used car side . It used to be if you bought like a leased vehicle from them , you knew it was from the area . Now they can be from as far away as New York . And the used vehicles can be almost from any car company and not exclusively Cadillacs .
No on really believes all dealers are bad. There are a lot of good dealers but there also a lot of bad ones too. Case in point I have a Chevy dealer here that is tops in service and sales. they do a hell of a job. But across the street I have a dealer that used to be good and had sales a sales staff that had been there for years and did not play games. They gave you the best price upfront and great service after the sale. They then got rid of everyone and started to make dealing with then a chore. They ripped off my father on his service and lost my future sales. My GMC came from another dealer in another county because they did a better job.
I know first and many customers lie and are scum. But that is besides the point as Not all dealers are angels either. I had one dealer locally just pull a bait and switch on their advertising on my. So I went back to the other dealer and they sold a car about 2 hours later.
I had one Chevy dealer sell an HHR SS for 21,750 and I just missed it. I called another local dealer and they told me the other dealer lied. I told them no they did not and the price was even advertised. They would not come within $3K of the other price. Again I went to the local dealer I liked and via E mail I got my price while I was at work. We had to take 3 days to make a dealer trade but I got a $28K HHR for $21,750 with no hassles.
The real deal is GM has too many dealer period good and bad. The fact is dealers today need to turn volume. Outfits like Auto Nation are killing the small dealers and put a hurt on profits of others. The larger the dealer the better the profits. If you leave 5 Chevy dealers in an area like Akron Ohio they will only hurt each other as there is only 1 Toyota dealer in the same area.
The small town dealer as nice as it is has become a liability for many. While more convenient they also are not making money like they should be. I got a real deal on a GTP GP with $9K off sticker because they had two on their floor plan for sale in a depressed area of eastern Ohio. I did not have to bargain as they just wanted to get rid of the car since they could not move it. They mostly sold trucks and smaller cheaper cars. They were bought by a larger chain and just wanted to get the inventory to what they sold.
So to move forward GM and the dealers need to work together getting things right as GM will suffer if they can not get the dealers in line and the Dealers would be much better off with less stores in each market to help them make more money. Making money is power for the dealer as you turn good number you get things done for you. The local Pontiac GMC dealer here where I bought my last GMC is now just a GMC dealer now. They are in a small town but they sell the most GMC vehicles in the county due to good prices and service. GM likes them so much they came in and paid for more of the remodeling they did than what most dealers are offered. They would like them to take on Buick at some point but they are just happy with GMC. Their average sale is right around $50K and they move a lot of product.
The key for Cadillac is the dealers need over the top service and they need only one of two stores in most major metro areas. The volume at Cadillac is going to be moderate but the transaction price will clearly be much higher. 5 Dealers in a market selling 20 cars each a month are not going to cut it.