As of January 1, 2020, Cadillac had 882 dealerships in the United States, of which 153 were standalone, one-brand showrooms. Back in 2008, the brand had mind-blowing 1,400+ franchises around the country with around 500 of them disappearing shortly after General Motors’ bankruptcy. It is expected that this number will be halved by 2022 if a new report is accurate.
Automotive News reports that GM wants to drastically reduce the number of Cadillac dealers in the US with approximately 20 percent of the current franchises expected to give up by the end of 2021. Some 150 have already said goodbye to GM as previously reported. On average, a Cadillac brand in the US sells fewer than 180 vehicles per year whereas BMW and Mercedes-Benz showrooms sell more than 900 cars annually.
Taking a look at the current situation, more than 700 dealerships are multi-brand which makes it less risky to continue with Cadillac and adapt to the brand’s changing strategy. Recently, General Motors told Cadillac dealers to either invest about $200,000 in retooling, charging stations, and workers training, or accept a buyout and leave the game.
“When you are able to dual with a couple other brands and have shared expenses, have lower overall cost... you can sell your units and still do well,” George Karolis, president of The Presidio Group, a dealership advisory firm in Georgia and California, commented to Automotive News.
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Cadillac stores in larger states and markets seem to be generally more open to investing in the marque’s new strategy to sell only electric vehicles by the end of the next decade. The situation is different in the smaller states where EVs are expected to be less attractive thus making it more difficult for the dealers to return the huge investments.