agent Entrepreneur logo
MenuMENU
SearchSEARCH

GM Scraps its Plan to Thin Cadillac Herd

March 15, 2010
2 min to read


General Motors Co. has scrapped a plan to reshape its Cadillac dealer network in the image of Lexus, Automotive News reported. GM had said it wanted to cut the number of Cadillac franchises by two-thirds -- from 1,422 on Jan. 1, 2009, to about 500 by the end of this year. That plan would have put it in line with import luxury brands, which typically use a few hundred dealerships and focus on coastal urban markets. Now GM is using dealer reinstatements to rebuild its network of small-town Cadillac dealerships, interviews with dealer lawyers, consultants and advocates showed. The dealer representatives interviewed by Automotive News said 55 of their 75 clients that are to be reinstated are rejected Cadillac showrooms. The vast majority of those Cadillac dealerships, which were being wound down for closure by October, are in rural areas or small towns, the interviews showed. The 922 Cadillac franchises marked for closure in last year's reorganization accounted for nearly half of the 2,000 GM stores affected. Last year GM planned to close 1,350 dealerships and another 650 franchises at dualed stores. Since GM's bankruptcy last June, the company has been pushing Cadillac sales in large metropolitan areas on the East and West coasts while winding down dealerships in less populated regions, dealer lawyers and consultants said. That attempted realignment sought to mimic the network distribution of BMW, Lexus and Mercedes-Benz, they said.

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →