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09-23-2016, 10:18 AM | #1 |
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Join Date: May 2010
Posts: 1,497
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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 |
09-23-2016, 12:48 PM | #2 |
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Join Date: Jul 2009
Posts: 181
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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.
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09-28-2016, 07:18 PM | #3 |
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Join Date: Mar 2013
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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. |
10-11-2016, 10:08 AM | #4 |
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Join Date: May 2010
Posts: 1,497
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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.
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