Jump to content

Cadillac Dealers Bailing


Recommended Posts

Doesn’t seem like GM is too worried about the fallout since the story says they feel there are too many Cadillac dealers now.  Cadillac and Lincoln seem to be having a difficult time finding their niche market these days.  I just read a review of the 2021 Chevy Tahoe in our local newspaper today.  The model they tested had a list price of over $71,000. That used to be Cadillac territory, now Chevys cost that much.  To upgrade to a Cadillac must be in the $90-100k range.  Seems like the number of takers for those prices might be looking at BMW or Mercedes Benz offerings instead of Cadillac.  It will be interesting to see how it all plays out.

Link to post
Share on other sites

"The Wall Street Journal reports that 150 of them have taken a $300,000 to $1,000,000 buyout to cease operations instead of investing $200,000 in charging infrastructure and other updates to their facilities to support the brand's electric future."

 

Smart dealers!!

 

Opt for the buyout at $300K (if they handle other lines of cars), and then invest $200K of that payout to handle Cadillac dealer again once the smoke has cleared?

 

Craig 

Link to post
Share on other sites

Thank you for sharing the article, Jake.

 

Cadillac, in my opinion, is no longer the halo brand

to which buyers aspire.  For smaller dealers, who

may carry the entire GM car line-up of Chevrolet,

Buick, and Cadillac, the added cost to handle electric

Cadillacs probably doesn't seem worth the trouble.

 

In one of his books, former GM Vice Chairman

Bob Lutz wrote that he wanted to keep smaller

Cadillac dealers.  They were typically in small towns,

and may have sold just a few Cadillacs each year

to the local banker and doctor, but they helped

promote the brand and the image.

 

Edited by John_S_in_Penna (see edit history)
  • Like 1
Link to post
Share on other sites

The article clearly states that GM wants less dealers

 

"Cadillac has previously shown interest in reducing its number of dealerships several times, offering buyouts much in the same manner it is now. As it stands, Cadillac has far more dealerships as compared to other competitive brands like BMW, which had just 341 sales locations nationwide as of 2018. Mercedes-Benz, similarly, had just 363 dealerships as of 2019, a fraction of the number Cadillac's 800 despite having greater vehicle deliveries to dealerships."

 

My NY residence on Long Island is in a densely populated county and there are only three Cadillac Dealers. There is 1.4 million people crammed into 450 square miles. Two of them are stand alone dealerships. The other is Cadillac, Buick, and GMC.

 

I am not surprised by this news, the dealer I have been buying from for the past 30 years told me that 80% of the Cadillacs are leases from his dealership, that might be playing role in this dynamic as well. The point of purchase has changed, and like their European competition the owners average age is much younger then it was 20 years ago.  

Edited by John348 (see edit history)
Link to post
Share on other sites
Quote

On average, a dealership employed 69 workers in 2016, up from 66 in 2015. Average weekly earnings of dealership employees also increased, growing by 2.6% from 2015.Apr 13, 2017

I think that number is a bit high but whatever for my purpose.

Hooray for the 150 dealers who chose buyouts.

Not so hot for the more than 10,000 employees who are having their jobs sold out from under them....... 🤬 🤬 🤬

Link to post
Share on other sites

Unfortunately I see this as part of the death spiral. The tell tale is the claim that they want fewer dealerships to lower costs and boost profits. I watched this happen a number of years ago with a popular retail chain in our region. They started closing and selling-off retail outlets to "reduce costs and boost profits" I have no doubt it did... for a short while. Then they began the real plunge since reduced outlets also meant reduced points of sales and thus less revenue. 

 

Its interesting that they mention the number of BMW and Mercedes dealerships in the U.S. The last time I checked both of course have very strong base in Europe and elsewhere to fall back on when the US market is soft. Unfortunately Cadillac doesn't have that. It Sales outside North America are relatively small with the exception to China and to add to that its market share here in the U.S. has shrunk.

  • Like 2
Link to post
Share on other sites

When I tell younger people I worked for RCA Corp for nearly 35 years many of them have no idea who or what RCA was to the world of electronics and home entertainment.  I believe that same feeling exists when you say Cadillac to them.  BMW and Mercedes Benz, Toyota and Honda yes but Cadillac is a name from a time before they were born.  An electric high tech Cadillac product might change that perception but it’s going to be an up hill struggle.  For some dealers this buyout might be the perfect opportunity to exit gracefully from the auto business.

Link to post
Share on other sites

I read with amusement the neigh-sayers of electric vehicles in general, and Cadillac's long term commitment to them. My assumption is you think electric cars will be a bust for Cadillac.  I wholeheartedly disagree.

 

I get we are antique automobile enthusiasts. I also get our love affair with the beloved internal combustion engine. But make no mistake, the future doesn't care about our hobby or the internal combustion engine.  Electric vehicles are coming.  

 

Cadillac is not the only car manufacturer banking on EVs for the future.

 

Stick you head in the sand if you must. It wont change the tsunami of EVs in the future.

  • Like 10
  • Thanks 1
Link to post
Share on other sites

Are five Cadillac dealers (one with two locations) within 50 miles of my house.

 

Still have not seen figures on how many electric cars the grid can handle.

Link to post
Share on other sites

Peter, In regards to Cadillac, for me it has little to do with EV's its about management and marketing.

 

I follow the development of EV's with interest though I must say I cringe when for instance California mandates EV's. Nothing retards technological development as decree. Let natural market forces drive development. Also, having been involved in engineering my whole adult life I have a full understanding of trade-offs and un-intended consequences. In this case its where will the power come from? In our state there is a clamor for green renewable energy yet we forced the shutdown and decommission of a nuclear power plant and have been and still are removing hydroelectric facilities. (we never had a lot of fossil fuel plants) We went from a energy rich state that was relatively green to importing energy. We have learned that wind power is expensive and faces a huge NIMBY movement and is stagnant here. A recent report stated that solar energy in our state is going to hit the tax payers with an estimated 160 million dollar per year bill due to the promised tax credits and incentives our Governor handed out. So we have turned to importing electricity produced by.... well.... surprise... hydroelectric, nuclear and fossil fuel from elsewhere. All of this has lead to increased cost to the consumer. As that cost of electric increases why would I switch? Unlike California, when its 30 bellow zero here brown-outs or rolling blackouts would threaten life and limb. One pill doesn't cure all ills.

 

Edited by Terry Harper (see edit history)
  • Like 7
Link to post
Share on other sites
51 minutes ago, Peter Gariepy said:

I read with amusement the neigh-sayers of electric vehicles in general, and Cadillac's long term commitment to them. My assumption is you think electric cars will be a bust for Cadillac.  I wholeheartedly disagree.

 

I

 

I think it's a respectable opinion that Cadillac will be a bust with EVs simply because Cadillac has been a bust with virtually everything for the last 40 years (but the Escalade). I'd buy an EV now, if there was one that fit my use cycle. A Honda E would be in my garage, if it was available in the states. My skepticism is that manufacturers will be able to produce something that hits the sweet spot of gaining consumer acceptance, meeting government mandates and being economically viability. 

Edited by Car-Nicopia (see edit history)
  • Like 1
Link to post
Share on other sites

Dunno, wouldn't throw out a Cimarron with 2.8 and 4 speed. Also have three Caddys at moment, a Catera Coupe and a couple of Allantes. Have laso had a passle of H-bodies including three Vega GTs and several Fieros (prefer GM). I find that with a little tweaking a cheap lemon can become a very nice car (and often do not have many miles on them.

 

Guess the fact is that many, particularly of the older generation, just do not like computer cars, and get expensive service from the inept, and require a dealer to fix what they broke - and do not like it when you try tell them that.

 

Nothing new, remember my grandmother saying she did not care for Buicks because they had overhead valves.

Link to post
Share on other sites
51 minutes ago, padgett said:

Dunno, wouldn't throw out a Cimarron with 2.8 and 4 speed. Also have three Caddys at moment, a Catera Coupe and a couple of Allantes.

 

Do you take them to a Cadillac Dealer for service?

 

51 minutes ago, padgett said:

Guess the fact is that many, particularly of the older generation, just do not like computer cars, and get expensive service from the inept, and require a dealer to fix what they broke - and do not like it when you try tell them that.

 

The person who buys/leases a new Cadillac today could care less about that stuff. When I take my Caddy in for service I am by far the oldest person there, and I am in my early 60's. If anything, the younger market desires technology. What you are saying makes absolutely no sense. Are referring to used cars, very used and abused cars, or almost used up cars? Owners of those vehicles have no impact to dealerships and dealerships have no impact on them.

 

 

Late model used Cadillacs under a GM warranty, will be a problem because the lack of service departments available. Then again due to leasing there are not many 'owners' they hand over the keys and take a new vehicle. I have a strong feeling that EV market is going to be huge for the auto industry, because it will increase leasing. Now every three years that car will get replaced with a new one.

With an all EV platform there will less and less routine service required, no fluids, less moving parts, no cooling system, there will be very little meat on the bone for the dealership service departments  

Edited by John348 (see edit history)
  • Like 3
Link to post
Share on other sites

"Do you take them to a Cadillac Dealer for service? " only car that goes near a dealer is my tow car and have a mfr warranty to 2095. Mostly I have better service equipment than they do,

"in my early 60's." yonker.

 

 

Link to post
Share on other sites
2 hours ago, padgett said:

Also have three Caddys at moment, a Catera Coupe and a couple of Allantes.

 

Can we see a picture of the Coupe? That's a rare car! 😏

 

37 minutes ago, 1937hd45 said:

If electric vehicles are so wonderful can I rent one? How long does it take the fill in the black rental company to teach me how to drive one and return it as it left their lot? 

 

Bob 

 

https://turo.com/us/en/car-rental/united-states/tesla

Link to post
Share on other sites
39 minutes ago, 1937hd45 said:

If electric vehicles are so wonderful can I rent one? How long does it take the fill in the black rental company to teach me how to drive one and return it as it left their lot? 

 

Bob 

Go down to your local Chevrolet dealer and ask them to show you a Chevrolet Bolt electric car or to a Nissan dealer and ask to drive a Nissan Leaf electric car.  Or a BMW dealer to drive an I3, lots of options if you would like to know more without spending any money.  They don’t bite and won’t send electric shocks through your body. Jaguar has an electric car too but that might be harder to find.   
 

Here’s a review of the 2021 Chevy Bolt that might answer some of your questions https://www.kbb.com/reviews/2021-chevrolet-bolt/

 

  • Haha 1
Link to post
Share on other sites
Just now, TerryB said:

Go down to your local Chevrolet dealer and ask them to show you a Chevrolet Bolt electric car or to a Nissan dealer and ask to drive a Nissan Leaf electric car.  Or a BMW dealer to drive an I3, lots of options if you would like to know more without spending any money.  They don’t bite and won’t send electric shocks through your body. Jaguar has an electric car too but that might be harder to find.   
 

Here’s a review of the 2021 Chevy Bolt that might answer some of your questions https://www.kbb.com/reviews/2021-chevrolet-bolt/

 

 

Can't do that.  Had a discussion with a friend years ago that had the balls to walk into a dealership and ask to test drive a vehicle. Can't afford to buy one would never think of pulling off a stunt like that. I'd love to find a Mini Cooper to rent for a weekend. Bob 

Link to post
Share on other sites

For the electrics the dealers know most who ask are curious to see what they are all about.  I would give it a shot of I could still drive.  When the Toyota Prius first came out the local dealer was more than happy to show me how it works and take it for a ride.  I don’t think they were expecting much more from me other than satisfying my curiosity.  I have been physically unable to drive for the last eight years so my test drives have been cancelled and my son is my source of input when he drives something special.  That’s him driving a BMW electric I8 sports car. Lucky dog!!

8F01A458-C995-4944-9D18-05AA6ABD67CF.jpeg

  • Like 5
Link to post
Share on other sites

2011 CTS Coupe (Catera Touring Sedan). They really don't like it when I say that but has many foreign elements starting with the overall size  to the gas filler on the passenger side.

Link to post
Share on other sites
11 minutes ago, padgett said:

2011 CTS Coupe (Catera Touring Sedan). They really don't like it when I say that but has many foreign elements starting with the overall size  to the gas filler on the passenger side.

 

Who is "They"?

Link to post
Share on other sites

I drive on a regular base across the country for my business. If I drive a 1000 miles a day (which is not uncommon) it would take me several days to do that with an EV to get it reloaded. My combustible engine beats any EV till they find a solution for recharging in less than 5 minutes. 

  • Like 2
Link to post
Share on other sites
13 hours ago, Cadillac Fan said:

Oh no!   They are very supportive of the local clc.  Things are sadly changing.  

 

Yeah, that's a big bummer. I went to many CLC Potomac Region shows there, and they were always like family.  It's basically the Region's home.   Sad news.

  • Like 1
Link to post
Share on other sites
9 hours ago, Peter Gariepy said:

I read with amusement the neigh-sayers of electric vehicles in general, and Cadillac's long term commitment to them. My assumption is you think electric cars will be a bust for Cadillac.  I wholeheartedly disagree.

 

I get we are antique automobile enthusiasts. I also get our love affair with the beloved internal combustion engine. But make no mistake, the future doesn't care about our hobby or the internal combustion engine.  Electric vehicles are coming.  

 

Cadillac is not the only car manufacturer banking on EVs for the future.

 

Stick you head in the sand if you must. It wont change the tsunami of EVs in the future.

 

Absolutely. And I'll add that I think electric vehicles are really cool.  I don't drive enough these days to justify buying a new car -- my daily driver is a 2009 model, and it shows no signs of having problems --  but I'm sure the next new car I get will be electric. And probably any new cars I get after that, too.  

Edited by 1935Packard (see edit history)
Link to post
Share on other sites

I'm not anti-EV, though it will be a long, long time (if ever) that I own one. The freedom an internal-combustion engine grants me means too much. I think the real question is, will the dealers get any kind of return on investment should they upgrade? Have you driven by a former Hummer dealership? How about that remodel at my local Toyota dealer to give Scion its own space? It's not that Cadillac won't sell a lot of EV's, but will it sell enough to be worthwhile? 

 

Where I live GM eliminated all but one Cadillac dealer some years ago, and it's shared with a Chevrolet franchise. I have to wonder, if he balked at the expenditure, would anyone else see fit to grab it? Again with the return on investment. GM would surely want a standalone building if someone were to take it over from scratch. One of the dealers that lost Cadillac supposedly ran into trouble because he would hesitate to perform warranty work on cars he hadn't sold. There's a CVS where his place once stood and I have to wonder if that one store turns over more profit than that old dealership.

Link to post
Share on other sites
19 hours ago, 1937hd45 said:

If electric vehicles are so wonderful can I rent one? How long does it take the fill in the black rental company to teach me how to drive one and return it as it left their lot? 

 

Bob 

 

Bob, took me 60 seconds to drive you wrong.

 

HERTZ

https://www.hertz.com/rentacar/vehicleguide/index.jsp?targetPage=vehicleGuideHomeView.jsp&countryCode=US&category=Green Traveler Collection

 

ENTERPRICE

https://www.enterprise.com/en/car-rental/vehicles/us/cars/intermediate-electric.html

 

ALAMO

https://www.alamo.com/en_US/car-rental/cars/us/icae-intermediate-electric.html

 

NATIONAL

https://www.nationalcar.com/en/car-rental/vehicles/us/cars/midsize-electric-car-icae.html

  • Like 1
Link to post
Share on other sites

Somewhere around 30 years ago a knowledgeable friend in the car business told me "Car dealerships are not for people who like cars. They are for people who like money". Once that thought was planted it became increasingly obvious.

 

$0 down, first month free, drive out today!

 

Pin on Coney Island

Suckers - Roger Nygard

 

  • Haha 1
Link to post
Share on other sites
Link to post
Share on other sites
45 minutes ago, 1937hd45 said:

 

 

Interesting, I thought Hertz went out of business due to the China Covid 19, glad they are still in business. Bob 

 

My counter to your point that you cant rent EV remains true.  You can, from multiple sources.

Link to post
Share on other sites
On 12/5/2020 at 9:44 AM, Peter Gariepy said:

Stick you head in the sand if you must. It wont change the tsunami of EVs in the future.

Same with self-driving vehicles.

I just hope they won't become mandatory & only choice for individual transportation before I have to (voluntarily) give up my driving privilege, but based on my age, probably just wishful thinking. 😟

 

Call me old-fashioned or out-of-touch, but the way I see it and have always seen, anyone embracing all the latest modern tech, especially any and all electronic "driver assist" gadgets, etc in todays vehicles, essentially is the enemy of conventional motoring and helping to drive the stake through its heart. 😞

Edited by TTR (see edit history)
Link to post
Share on other sites

In my opinion, part of the reason Cadillac is suffering on sales is because they have far too many FWD cars in their line up.
No serious flagship brand should have FWD cars in their lineup unless it's an entry level model.
No true luxury car has FWD.

And while BMW and Mercedes may sell more cars and have more prestige, their resale value is horrendous after a mere 5 years due to reliability issues and repair costs.

Link to post
Share on other sites

Heck I used to write specs for aircraft electronics based on devices that did not yet exist (but would by the time we went into production).

Link to post
Share on other sites

Funny I thing driver assist technology will enable older drivers to drive longer before they give up for safety reasons.  The feature that keeps you at a save driving distance from the car in front of you or prevents you from driving through the front door of the local convenience store seems like it can only help from getting your license pulled.

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...