http://www.masslive.com/news/index.s...all_cadil.html

I'm failing to understand GM's obsession with killing a large part of its Cadillac dealer body. There is now not a single Caddy dealer in Western MA (there were 3, as the article references above), and only ONE in the entire state of VT...and its near the Canadian border.

While I can understand and appreciate the need to thin out weak links in the dealer body, this mass pullback of Caddy franchises will undoubtedly hurt sales at a time they need more sales. When the closest Cadillac dealership to my area is almost 2 hours away, and I'm in a fairly populated area (a city of 160,000+ people is 3 towns away), this decision makes no sense.

It didn't cost GM anything to keep these 3 franchises in business. None were an embarrassment to the brand. Granted, none of them were large dealers that were part of a large dealership organization (I know all 3 personally), but what the hell was the harm in keeping 1-2 of them?

According to 1 of the dealers in the article whom I spoke with at an auction, he was told he could keep the franchise if he built a new building for it. Yeah, GM, brilliant timing to ask someone to build a new $5M+ showroom These are the times I wonder what the hell is going on in RenCen...

I know GM wants to emulate Lexus, with its dealer body and placement, but I've got news for GM...my area now has to drive over 2 hours to get a Caddy. I can get a Lexus 10 minutes away. Good luck to you...

 

I addressed this when I first heard about the plan (8-12 months ago now, maybe??), as the dealership I buy from is losing it's Cadillac lineup...

From what I understand, after all the dust settles, I will be about an hour away from the nearest Cadillac dealer. Although, one local dealership **MAY** have gotten a reprieve as I see they have been able to order 2010 Cadillacs, where the other two local Cadillac dealerships have not been able to...

But, if it ends up being an hour's ride to visit a Cadillac showroom, my 2008 SRX (fastly becoming one of my favorite cars I've ever owned) will be my first and last Cadillac.

I understand what they are trying to accomplish, but they are doing work that calls for a scalpel with a machete, IMHO.

 

Since when has much of anything that GM does make any sense?

 

I don't foresee many people driving an hour or more to get a Cadillac when there's likely to be any number of Lexus and Acura dealers within miles.

 

I don't think there is even 1 Lexus dealer in Vermont

 

This and a lot of people are emotional shoppers. So, if they pass a car they like everyday, that car will be their asperations. So, if joe passes a 3 series everyday and likes the car and never really see a CTS then joe will probably buy the 3 that he now likes.

 

You just need to realize GM knows best.
I think their impecable track record shows that.

 

...+1

 

A former dealer owner from Maine mentioned to me that soon the state wont even have a Cadillac dealer.

Some of the guests at the Product Technology Event in August talked about this very subject. I had mentioned while we were being shown cars that would help to increase Cadillac's sales, what would happen to those owners that had two or three year old Cadillac's and found out their local Cadillac dealer was gone. A good way to alienate customers. The customer base could be expanded with the addition of the new models.

 

All that I know is that within the time it takes me to drive to a Cadillac store now, there are 2 Lexus stores, an Acura store, an Infiniti store, and 2 BMW stores. ALL of these stores are closer than the Caddy stores, some significantly so. I can buy a Lexus or BMW within 15 minutes of here.

A shame...pure and simple.

 

GM is making a huge mistake with this. I could careless about a fancy showroom and free coffee.

 

Hilarious!!!

 

Quoted.For.Truth.

 

well -- you, perhaps may not. But most luxury car buyers DO care.....

This is a very emotional and passion-filled subject.

None of this was done without a lot of deliberation -- and sleepless nights (make that sleepless months..)

I am not "the" expert on this -- but let me give you some thoughts from my experience.... (and I was not privy to the conversations that took place concerning all of this when the decision was made to drop the number of dealers.. - so I must say up front that this is MY observations and does not necessarily reflect the views of GM or Ford or Chrysler)

(...and Aaron -- how 'bout saying something nice every once in a while.???)


The average Cadillac dealer last year sold around 150 new Cadillacs.

BMW and Mercedes dealers sold somewhere around an average of 750 new cars last year...

...and Lexus? over 1,100 as an average.

There were substantially less BMW/Mercedes/Lexus dealers in the United States than Cadillac - until very recently.



Funny thing: We talked to owners of all Luxury makes -- and guess what the biggest complaint was?

...lack of the "luxury experience" when buying and servicing their luxury cars.

Do the math -- how does a dealer selling 150 new luxury cars afford the luxury experience - -or how does he/she afford redoing the showroom and shop facilities -- when he competes with a dealer selling far more cars than he/she?

The answer is................



................ they can't.


Now......

Under franchise laws you can't just terminate a dealer. You would be shocked at how very difficult it is to terminate a dealer - -and in some states -- impossible for all intents and purposes.

..........Chapter 11, however, changes a lot of things........

We got rid of a lot of dealers - many of them poor performers -- many of them who did not take good care of the customer. THAT SAID-- many of those who DID lose the francise DID take good care of the customer.........so please -- we must NOT paint them all with the same paint brush, so to speak.

Don't believe for a moment that we'll leave the number where it is today -

Something to mull: At one time, Ford, GM, and Chrysler dealers were located in prime areas -- perfect locations - -they were the leaders.......most were appointed in the 1920s, 30s, and 40s.....even the 50s....


..................and then a funny thing happened.......

Can you say "Interstate Highway System?"

Can you say "shopping mall?"

Can you say "urban decay?"


.............and suddenly, a lot of our dealers were not in the right locations.

...and their facilities were no longer state of the art --

Not the dealer's fault. Not the manufacturer's fault - -but another one of those "legacy" things....just like "legacy costs" that new entrants into the market do not have to deal with..................... yet!

And so - the world turns upside down....and GM and Chrysler are forced into Chapter 11 - -and things change.

Understand something, please: I grew up in a GM Dealership....my family has had three
GM dealerships -- still has the one in Bakerstown.....

........and many of my friends (and my family's friends) have GM Dealerships who have lost either franchises (primarily Cadillac) -- or the entire dealership.

I've had dealers call me at home and sob on the phone - you have no idea .........horrible!!! My heart breaks for them.....and yet how do you say to them -- "hey -- you have some responsibility in this as well..."

BUT -- I also have to step back and look at a much larger picture......

If a dealer has done a good job -- and he/she is in the wrong location - and 'got the letter' - -then we as manufacturers need to look at giving them another dealer point - perhaps in a much better location......and that's already happening.

I believe that as we move forward, you'll see a strategy to appoint Cadillac franchises where they make sense.

Is this going to hurt us?

BOY HOWDY!

Good example:

I have a friend of over 35 years -- his Grandfather started a Cadillac/Pontiac Dealership (also had Packard) 60 years ago -- my friend was able to get Olds, Buick, and GMC in the early 80s.....

BUT -- Pontiac is history....and he lost Cadillac -- and losing Cadillac has very nearly killed him...

He's "mad as a sumbitch!" -- and I understand that -- and I am now his favorite whipping boy at 11pm when he calls and wants to slam us again and again.......

....and because I'm his friend - I'll listen.......and I'll quietly try to reason with him -- which is an impossibility........

He sold less than 25 new Cadillacs last year -- BUT - he's in a small town -- and he's on a bank board - and the school board -- and a deacon in his church -- you can BET that there are bad feelings on the part of his customers toward GM......and many of them will buy other makes........and that just kills me......

He said to me: "Hey - -I love my customers - I take good care of them -- I pick up their cars for service and I serve them coffee!"


.......and that's great.......

.....but at some luxury stores, it's not

"would you like cream and sugar in your coffee"

- but

"....how would you like your omelette while you're waiting for your manicure?"

.......the CUSTOMER is saying: "I am buying a luxury car -- and I want a luxury experience...."

Do I agree with everything we've done?

No.

But as I said - it's important to stand back and look at the bigger picture.

Yes - we're going to lose customers -- at a time when we can ill afford to.......

......but I've also dealt with dealers for 30 plus years at GM - and grew up surrounded by them.....

........and I'm here to tell you that you cannot 'demand' that a dealer do anything .......that's just part of life these days.........


and so......

I pose to you - how would YOU have done it?

(...and if you're going to respond -- specifics, please -bigger picture, please....)

 

First off, I think Caddy dealers need to be stand-alone dealers.
You cannot sell Chevy's and Buick's along side Caddys.
You need to have a luxury show room, and you need to offer luxury services.
The Caddy dealer in my town is apparently the largest Caddy dealer In the World.
But when you compare it to the average Lexus and Jag dealer (both owned by the same guy) it blows it away in service. They hire a guy to drive a zamboni like machine that washes and cleans the shops floors TWICE A DAY! THE SHOP IN WHERE THEY REPAIR THE CARS!!
They have pretty much a full sandwhich and coffee shop. They have an in-door driving range, WiFi, and thats just the basic stuff.

Jason...I can travel from Springfield to Boston in 2 hrs. In fact, I have!
I think they need to evaluate where they place the dealers. I know a lot of dealers want it back, but they do need to make sure that the dealer fits the image that Caddy wants.