Go Back   DealershipForum.com > Dealer Talk > Automotive Discussions

Notices

Automotive Discussions Car People talking about the Car Business – This is the place where it happens

Reply
 
Thread Tools Display Modes
Old 09-23-2016, 10:18 AM   #1
steve_biegler
Senior Member
 
Join Date: May 2010
Posts: 1,497
Default Cadillac offering dealer buyouts!

Any Caddie dealers out there that can weigh in on this? I'll hold my thoughts for now.

http://www.autonews.com/article/2016...er-u-s-dealers
steve_biegler is offline   Reply With Quote
Old 09-23-2016, 12:48 PM   #2
srt
Senior Member
 
Join Date: Jul 2009
Posts: 181
Default Buyout

Very generous offer. Reminds me of the Bankruptcy generosity. Don't know all the details of the new great vision for the franchise but my guess is this is a holdup with locked doors.
srt is offline   Reply With Quote
Old 09-28-2016, 07:18 PM   #3
mryan55
Senior Member
 
Join Date: Mar 2013
Posts: 595
Default

We have a Cadillac franchise. Our volume is well outside of the dealers targeted for buyout, but I think some of the facility expectation going forward for Cadillac stores regardless of size are a bit un-nerving.

There's a dealer with a four-year old imagine compliant (at the time) facility with Chevrolet and Cadillac. About 1/3rd of current showroom area is dedicated to Cadillac, including a dedicated 'private' sales office. Current push is to have a dedicated showroom for Cadillac. Absolute insanity.

If you figure that most of these stores are probably small market Buick-GMC-Cadillac stores or Chevrolet-Cadillac, dumping Cadillac might actually make a lot of sense. Although the margins are nice, I'm guessing the brunt of volume and gross for these stores is coming from the mainline brands.

Not to mention in these smaller markets consumers will probably still buy local, buy GM, and just buy from the remaining lines the dealer has. Cadillac customers will shift to Denalis, etc...

Still not a fan of the direction, but it might make sense for some.
mryan55 is offline   Reply With Quote
Old 10-11-2016, 10:08 AM   #4
steve_biegler
Senior Member
 
Join Date: May 2010
Posts: 1,497
Default

According to Automotive News the vast majority chose to stay with Cadillac with many choosing the top tier. The dealers that did not stay were small. That is not a surprise. I'm glad that the small guys got a chance to bow out with some monetary gain and the protection of the franchise laws. I guess it remains to be seen if the investment necessary is worth staying with the brand. Many dealers are loyal to a fault, as has been proven in the past.
steve_biegler is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Former Cadillac Dealer found dead by suicide XDCX Automotive Discussions 6 02-11-2020 10:13 AM
Houston Cadillac Dealer, Joe Stewart, shot and killed at his home XDCX Automotive Discussions 0 05-11-2015 10:28 AM
Cadillac Dealer dating back to 1903 to close this week XDCX Sales 2 03-06-2015 09:28 AM
How long before GMAC starts offering leasing on Chrysler vehicles? XDCX Finance 0 08-25-2009 08:44 AM
USAA offering 100% Financing with 5.99% for 60 Months XDCX Automotive Discussions 0 10-23-2008 09:47 AM


All times are GMT -7. The time now is 11:56 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016