GM Scraps Plans to Cut Back on Cadillac Dealerships

Last year, GM had announced plans to significantly reduce the number of Cadillac dealers operating in the United States, going from a total of about 1,400 at the start of 2009 to around 500 by the end of the year. However, Automotive News is reporting that those plans have been scrapped, as GM is planning on reinstating Cadillac dealerships across the country.

The initial plan was created to bring Cadillac in line with luxury car lines such as Mercedes and BMW, which have a smaller number of dealerships located in major metropolitan areas. The majority of the more than 900 Cadillac dealerships that were scheduled for closure were in rural or smaller metropolitan areas, with GM focusing its growth of the Cadillac brand on larger populations on the East and West Coasts.

“We think that GM realized that terminating these dealers would leave a lot of loyal Cadillac customers orphaned and not produce a material benefit in the form of increased sales,” said Ernie Manuel, president of the Fontana Group in Tucson, Ariz., a financial consulting firm for dealerships.

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