The Cadillac U.S. dealership network will consist of around 560 individual storefronts by the end of 2021 as the automaker’s North American retail footprint continues to shrink.
According to Reuters, Cadillac has mostly completed its dealership restructuring and is on-pace to have around 560 active dealers in the U.S. before the New Year. Rory Harvey, head of global Cadillac, told the publication the brand had around 920 active U.S. storefronts as recently as three years ago. The automaker began reducing the number of active U.S. dealerships it had late in late 2020 as it prepared to launch new battery-electric models like the Cadillac Lyriq, which will enter production early next year.
Under its restructuring efforts, Cadillac required all active dealers to make a sizable investment to prep for the arrival of the new EV products, which would go toward electric vehicle chargers, renovated service bays and more. Dealers who did not want to make these investments, which often surpassed $200,000, were offered buyouts ranging from around $300,000 to over $1 million to close their Cadillac storefront.
As of last December, about 150 dealers elected to take the buyout, which would have dropped the number of U.S. dealers under its umbrella to around 770 storefronts. More dealers have since accepted the buyout offers, bringing the number of U.S. Cadillac dealers to just under 600. According to Reuters, Cadillac has spent $274 million on these buyout offers throughout 2020 and 2021.
Some automotive retailers are cutting back on Cadillac storefronts, but others are expanding. Certain dealers have entered new, luxury-focused markets as the automaker prepares to roll out its new line of battery-electric vehicles, including Beverly Hills and San Francisco. Wealthy, metropolitan markets like this may be more receptive to new battery-electric Cadillac vehicles than rural markets and may be willing to shell out more money for such products as well.
While Cadillac’s physical dealership network is shrinking slightly, the automaker has also moved some of its sales practices online to help drive results. The Cadillac Live service launched in the U.S. in late 2019 and proved hugely important when the pandemic closed showrooms nationwide in 2020, allowing customers to interact with a Cadillac representative and learn more about its latest products. Tech-savvy EV shoppers may be particularly drawn to this service, as it allows them to shop for a vehicle from their home or while on the go using a computer, smartphone or tablet.
The 2023 Cadillac Lyriq will begin arriving at U.S. Cadillac dealers early next year.
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Comments
It would be more interesting to see which states had the most buyouts and which ones had the least to determine how strong or weak the market for the brand.
Hopefully gm will go under one day for all the dirty things they have done.
Should VW go under too? How about Tesla?
Yea when companies make “mistakes” it’s not the job of the people to bail them out tom.
I agree with you, what about all the banks others who got money. You know they should have just wiped everyone’s debt away when they went under but they also got bailed out and those with loans still had to pay them.
Those banks lied to they didn’t use that money for what they claimed they needed it for. Understand this not all but a majority of the people on here would praise gm not matter what. They could literally make a car out of paper and most of these guys would claim it’s the best thing they have ever seen. They can’t comprehend the fact there beloved gm made mistakes and didn’t have to pay for any of them because the tax payer bailed them out.
Ronnie
I hope Santa Clause takes a big dump in your Christmas stocking this year, and you don’t discover it until it becomes magot infested and you have a house full of flies.
Dick this is the only response you will ever get from me so cherish it or better yet take a screen shot. I really hate to burst your bubble but Santa clause is not real. I know shocking right? But it’s true he’s not real. You are a troll that’s all you have ever been since I have seen you comment on here, which is fine if that’s your thing but I don’t have time for that. I wish you all best in the future and who knows maybe one day you wont be a jerk on here anymore even though I highly doubt it. I know you will reply with some other jerked out response but I won’t respond to you anymore so take care friend.
Ronnie, So from this day forward I’ll be able to trash you, and your Stuuuuupid anti-GM comments, and you’ll just sit there and take it.
Good!
I think most people just don’t like you because you are prick. I’ve seen numerous people not reply back to you because you are exactly what your name is a dick.
I didn’t mean that as an insult either. I’m sure you are a swell guy in real life I just meant you are pretty uncool on here but whatever to each there own.
Patrick
Guy came to a GM news site to say “ I hope GM goes under” and your calling me a prick.
AND IN WHAT DEMENTED UNIVERSE IS CALLING SOMEONE A PRICK NOT CONSIDERED AN INSULT?
Take your halfassed apology and shove it. I’m telling Santa to leave a magot infested turd in your Christmas stocking too.
I just call it like I see it. As I said before I’m sure you are a swell guy in real life but on here? Nope you are a prick you only comment when you are being a prick to someone. If this is not true then show me one comment you have made over the last month that is not a prick comment.
in that month: I told off some anti-Vader’s; slammed some other idiot for his “the electrical grid can’t handle it B.S. Called out someone else for trying to drive away all the left leaning commenters. Now I’m working on getting rid of the “the Let GM go bankrupt” comments.
I provide a necessary service. Allowing for more intelligent and balanced conversation.
You left a few other parts out but that’s ok to. I have a feeling actually my hope is all you guys who constantly trash talk each other will be banned soon. Hopefully the gm mods take the concerns emailed to them seriously.
When GM says “It’s by design”….that means the dealers don’t want to pony up all of the cash required by Cadillac to sale and service their products because the payback period is too lengthy/risky. This is one of the reasons market share continues to drop. Rural areas don’t have the large customer base to support required investment. Cadillac customers living in these areas which no longer having a local Caddy dealer, purchase local / competitive brand replacement vehicles. I see it happen over and over again as GM shrinks dealer network.
Get a job…
This is interesting. When I was at the Buick, GMC, Honda and Cadillac store (1988-1995 and again from 2007 till 2011), I would never have agreed with this move. But things are changing. The store I was at used to move a ton of GM products. Then they got the Honda fever and Honda gave the dealership a few ultimatums. Well, the owners/manager buckled and soon that dealership sold few GM products. Today they sell around 2x the Honda’s vs. the GM products, even though there are 3 GM brands! They just don’t really give a sh-t about GM. So my opinion is that they need to lose Cadillac. Let a dealer who really wants to sell them and commit to GM/Cadillac have the extra sales or find a dealer that will take on the Cadillac brand and work like heck to sell them. The same basic thing took place (same city) with the Lincoln/Mercury/Toyota store. As we all know, Mercury went away and that dealership just didn’t care about having any Lincoln models on the lot. All they cared about was Toyota and of course Toyota pushed them hard to do just that brand. In 2000 I purchased a brand new 2001 Lincoln Continental from them (from my buddy who works there). It was one of about 5 Lincoln’s they had in stock while they had over 100 Toyota’s sitting there. After my sale, I was then on their mailing and email list. Every item I got from them was promoting Toyota, so I finally had enough and called them up. Told them if they were not interested in selling Lincoln to give it up. Then I told them to remove me from any lists they had. The last POS I’d ever buy would be a Toyota.
So my thoughts on this have certainly changed over the years and now I feel if a dealer doesn’t want to fully commit to Cadillac, then hit the streets.
Yea ok because a dealer that’s been there for decades that might not have $500k+ to “renovate to gm standards” they need to go? You are a car salesman right? I would of expected more from you. By the way been meaning to tell you I believe you said you were once a cop I wanted to say thanks for your service.
Manny: You do realize that Honda, Toyota, Mazda, Volvo, Kia etc all require dealers to “invest” or face the consequences? Our dealership just finished a million dollar Volvo renovation in order to be allowed to continue selling them. Mazda also pushed the owner to do a complete renovation. Two years after that was finished, they require him to make more changes based on what the company wanted in order to once again have all Mazda dealers with the same look. Spending 200 or 300 or 500,000 at a dealership is not hard to do. The fact that Cadillac is basically saying (what I’ve bluntly said above) that the dealers must be at a certain level to continue and/or sell the all electric’s coming is not a bad thing. Do you think Lexus allows their dealers to coast along without making changes and/or improvements?
A dealer being there for decades doesn’t hold water any more. That’s what I felt years ago and wish it was still more important, but it’s just not.
Yes, I used to be a police officer and then a chief of police. It’s a thankless job that I would never go back to again. But thank you for your kind words.
This isn’t unique to dealerships, it’s true for all franchises. How many McDonald’s around you have been unrenovated since the 80’s?
They don’t need to “have” $500k, like a lot of things in the dealership business, renovations are often financed if the dealership is in reasonable financial shape.
Sam: You are totally spot on. I think the key words are “all franchises”.
I have recently learned that my Cadillac Dealership in Gainesville Florida took the buy out. It bothers me because after 18 new Cadillacs and more than 40 years of loyalty to the brand, I may have to change brands. My choice is switch or drive an hour to buy a new car or have my current cars serviced. Its been a good run, but I guess my Cadillac days are over. Hey Audi and BMW if you’re looking for a loyal customer give me a call !!!!
Bring back the CT6!
I think they will, in spirit at least, as a big electric sedan. I’d buy that in a heartbeat.
Going all electric at Caddy may not be a good thing. EV’s lose 40% of the value after six months. There isn’t even enough charging stations to go anywhere except around town. The dealers that stay in are going to make a lot less money as the service department will slow way down. Big risk when they haven’t even made the cars yet.
Where’d you hear that? Lose 40% value? That’s a pure myth. I own a Tesla and it’s perfect for my commute and I only need to charge it once a week. 40 mile round trip for work. Going back to Caddy once they release an EV sedan.
Daniel: I’m not too sure where you are getting your “information”. As Tom stated, the loss of 40% of resale value after 6 months? 6 years maybe, but not 6 months. Charging stations are more common than you may know. Until you have a reason to find one, you probably don’t even realize they are all over and that number will be growing substantially in the next few years. Your point about the dealers making less in service? That may be true for the electric models, but there will be many who will continue to buy ICE powered vehicles till the last day they are made. Then you will have those with ICE doing lots of service to keep that car running in top shape. By the time that all passes, dealers will have services to keep them going with the electrics.
This is not an insult towards you. It just sounds to me like you are talking from an uneducated (about electrics) point of view.
Right and most of them SUCK, Not Bentley or Rolls Royce that,s for sure. Typical GM customer is LAST NETWORK, screw them while you can.
My dealer accepted the buyout….so now the nearest dealer is over 100 miles away….interesting ……..those towns also have Audi, BMW and Mercedes…. If I have to drive 100 miles for service, it sure as hell won’t be on a Cadillac!
In 1979 I purchased my first Cadillac, a Fleetwood. Beautiful automobile but a total disaster. The A/C went out on my drive home fifteen minutes after delivery. It was July and yes, a typically very hot July. My next two years of ownership was no better. I switched to a Lincoln Town Car and loved it and no problems. I had Oldsmobile, Pontiac, Buick, and Chevrolet in the GM family but no more Cadillac. Finally, giving it another chance after all of these years, I now have a Cadillac XT6. Nice car, a few quirks, but nothing major. Lucky me, my Cadillac dealership is one of the ones who chose the buy-out. The only other dealership is quite a distance away with a less than stellar reputation. I now drive fifty two miles to the GM dealership I have used over several years because their Service Department is absolutely Gold. I loved my Oldsmobiles and Poltiacs and would still pick them over anything else. However GM killed that too. I will try and go with a Buick or Chevrolet next time, however my loyalty to anything GM is over; very sad.
There have been and are 10 Cadillac dealers in a 30 mile radius of me here in Chicagoland. None have closed. Is Chi-town the heart of Caddy dealerdom?