Local Cadillac Dealerships Post GM Bankruptcy

[Charles D. Barnette]

I wonder how the Cadillac dealerships are doing after "Black Monday" June 1, 2009. In my local area, the Texarkana Gazette today brings good news that the Orr Cadillac dealerships are to remain open. Orr Cadillac has a Cadillac dealership in Texarkana, Texas; Shreveport, Louisiana; and Hot Springs and Searcy, Arkansas. The owner Gregg Orr got the good news from GM Tuesday. These sites are part of the 400 Cadillac dealerships remaining open nationwide according to Mr. Orr. The article also stated that at one time, Cadillac had more than 1400 dealers across the United States. Orr also said that Cadillac will have a few new models out this summer: the CTS Coupe, the CTS wagon, and the 3.6-liter V6 SRX replacement. To keep our spirits up I am having Carla post a picture of a beautiful 1961 Cadillac Limo with padded roof that I photographed several years ago at a Kruse Auction held in Hot Springs, Arkansas. How are the local Cadillac dealers doing in your areas? Charles D. Barnette

[Joe Manna]

Charles,I don't exactly know how they are doing sales wise,but so far,our local dealer is still there.We are having our dealer show next Saturday.

Joe

[Carla Tynes]

As promised here is the beautiful 1961 Cadillac Limo with padded roof.

[johnsor]

I sure don't understand why GM and Chrysler are closeing down so many very good dealerships that don't owe them a dime, pay for their inventory with private financing, and sell hundreds of cars per year.  You will note that there have been a few on the news lately with the same concerns, and that appear to be good dealers.  The news says that its to "thin out the ranks", why? 

Most of the dealers being closed are very important businesses to many small communities.  Is this the government (car czar) dictating this to GM & Chrysler?  Thankfully 2012 is coming-up. 

[Rich S]

GM targets hundreds of metro Caddy stores

--------------------------------------------------------------------------------
Jamie Lareau

Automotive News | June 8, 2009 - 12:01 am EST

DETROIT -- General Motors wants to eliminate hundreds of Cadillac dealerships in metro markets to make the brand's per-store sales comparable with those of Mercedes-Benz, Lexus and BMW.

In a dealer broadcast on Tuesday, June 2, GM sales chief Mark LaNeve said some Cadillac dealers might be surprised to learn they will be terminated by Oct. 31, 2010, said GM spokesman Pete Ternes.

As part of the company's plan to winnow its dealership network, GM wants to align the number of Cadillac dealerships in major markets to those of its competitors.

"Our current footprint of 1,400 Cadillac dealers, most of which are dualed, is out of sync with modern luxury automotive retail," LaNeve told dealers, according to a transcript GM gave to Automotive News.

LaNeve did not say how many dealers Cadillac would terminate. But to reach the goal of a per-store sales match with rivals, hundreds would have to go.

"Mercedes-Benz, BMW and Lexus outsell us with 250 and 450 dealers," LaNeve said. "We have to address this and enable our large Cadillac dealers to do more volume."

The luxury gap
How Cadillac and its rivals compare in per-store sales.
Franchises as of Jan.1----- Avg. 2008 Sales
Cadillac 1,422 ----------------112
Mercedes-Benz 347-----------651
BMW 338---------------------- 737
Lexus 226 ---------------------1,158

Source: Automotive News Data Center


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I hear that many dealerships will be requirded to build new facilities, as a condition of renewing their franchise agreement. It may be just a rumor?

[Walter Youshock]

I heard the same story.

Supposedly, if there are 2 GM brands under one roof, they want to separate them and have only ONE brand under ONE roof.  And, if you have a Cadillac, you can ONLY have it serviced at the Cadillac dealer--Buick at Buick, etc.

[Otto Skorzeny]

Who is making the decisions? The White House or people that actually have some understanding of the car business?

There was a story recently that Chrysler dealers who had made donations to Republican candidates were getting the ax while Democrat leaning donors where allowed to remain.

I haven't been able to verify this one way or the other but it demonstrates the problems you get when government gets involved in making ANY decisions about anything.

[Porter]

Who is making the decisions? The White House or people that actually have some understanding of the car business?

There was a story recently that Chrysler dealers who had made donations to Republican candidates were getting the ax while Democrat leaning donors where allowed to remain.

I haven't been able to verify this one way or the other but it demonstrates the problems you get when government gets involved in making ANY decisions about anything.

You want we to post the article ? Not the type of stuff they condone here and perhaps rightly so - not my show or my say.

Trying not to cause trouble anymore. OF course in these times I dunno what type of reality is allowable.

I'll email it to you. Investor's Business Daily. And why would this be a surprise to anyone in these political times of Unconstitutional Govt. acts ? Not as if this is something new here in the last decades or century for that matter.

Porter

[The Tassie Devil(le)]

BUT, how many Lexus/Mercedes/BMW Dealers are there in the places where Cadillac doesn't serve the population?

Or is it simply that Cadillac doesn't make vehicles that people actually want to buy?

Don't forget that Cadillac Sells Cadillacs, and only the limited Cadillac range of vehicles, whereas the other three sell a whole range of vehicles from the "cheap" lower models to the Expensive Luxury models.

Figures can be altered to suit any scenario that the person wants to show, for their own good.   Have someone else use the same figures in a different way, and the outcome is always totally different.

Bruce.

[Porter]

Likely Chrylser and GM have too many dealers and the elimination of some of them was political. No surprise there.

Many of these dealerships were opened decades ago when sales where increasing, now they have 1/2 the sales from decades ago.

Sadly the newer premuim dealerships like Saturn are getting sold off.  Likley some newer premuim Cadillac dealerships eliminated too.

Business is very political, if you have never started or owned a business that concept might be new.

Individual people made large investments to open dealerships only to have the rug pulled out from under them. To me this smacks of the Wal Mart model of business and elimination of domestic brands and companies.  Maybe the old Dodge dealership will reopen and sell Hyundai now.

Porter

[Otto Skorzeny]

Welcome to the new fascist dictatorship of Amerika.

Here is the article from Investor's Business Daily:

http://www.ibdeditorials.com/IBDArticles.aspx?id=328404440867891

And the World Net Daily:

http://wnd.com/index.php?fa=PAGE.view&pageId=99328

[GBrown #8092]

Chrysler dealers being closed based on political affiliation is apparently an Urban (okay, suburban) myth.

I wish I could remember where the data was sourced. It essentially stated that less than 20% of the Chrysler dealers donated to the Democratic party. And that as far as new car dealers the Republican Democrat spilt was even more lopsided.
Thus, by the fact that most dealers supported the Republican party, most of the dealers closed by sheer numbers would have had to have been Republican supporters.

Kind of like saying only the tall basketball players get to play

Let me do some digging to see if I can find out where the data was sourced. All I can recall is it seemed to be an unbiased source at the time I heard it

Glenn

[Otto Skorzeny]

I have no problem believing that's the case.

The problem, obviously, is that once the government is involved in such a way as it is with the Chrysler and GM "bankruptcies", it becomes difficult to accept that any decision is not motivated by political expediency.

All of this government involvement in our economy is sickening.

[Rusty Shepherd CLC 6397]

And, if you have a Cadillac, you can ONLY have it serviced at the Cadillac dealer--Buick at Buick, etc.

Ford and Chrysler have always allowed all of their vehicles to have warranty work performed at any of their dealerships regardless of make while GM historically has administered its warranty programs separately through the divisions. Now, wiith one make gone, several more going, and hundreds of GM dealerships closing in the next 18 months, the corporation needs to follow Ford's and Chrysler's example. If they don't, someone with a Cadillac may have to have his car towed 100 miles past five GM dealerships to get to a Cadillac dealership for warranty work. 

[Carl Schreiber]

Forrest / Porter -

I can't believe YOU guys are missing the BIG picture here - the 'central authority' is only months away from picking winners and losers in this game.  In fact, it's already started.

First off, the gov't shafts the preferred debt holders (payback to their UAW cronies) EVEN THOUGH IT'S AGAINST THE LAW!!
The case goes to the Supreme Court, who WON'T EVEN HEAR THE CASE!!!  BTW, the case is brought by one of the only SOLVENT states in the union (Indiana) on behalf of their pensioners who are losing their a**es in the 'bankruptcy/restructuring'.  Then the  guy the 'annointed one' put in charge of GM today says 'I don't know anything about cars - 'business is business'.  Dammit, he doesn't need to - all he has to do is whatever Barry Soetoro TELLS him to!   

Watch - the next order of 'business' will be putting Ford out of business - since they're not 'playing ball' like the other two.  Think about it - for any of the hacks Barry installed to oversee GM and Chrysler/Fiat to make any money they STILL have to sell cars - and preferrably more than their competition.  Car purchases are financed, and who owns the banks (as well as Chrysler Credit and GMAC)?  That's right - ol' Barry!  If people won't buy GM/Chry-Fiats, all he has to do is slap a big ($3/gal or better) federal tax on gas, which makes people buy Priuses (which are currently down 45%!) and the clownmobiles Barry will be ordering the 'unholy two' to build.  It also funds 'free' health care...  (2 birds with 1 stone - hell, he should hire ME!)

As for Ford, if they become a (market) threat to Government Motors sales, hell, the banks (owned by Barry) just put heavy incentives into financing what Barry wants the US motoring public to buy (ie, the coming junk he will be forcing Government Motors to manufacture).  Realistically, he could even order banks he controls to finance Fords at a higher rate than the junk his companies will be building (to make his 'cars' more attractive/affordable).  The possibilities are ENDLESS!  Remember - not only does he now control the manufacturers, but the means to finance whatever lawnmowers his companies build as well.  What's more, what investor in their right mind is going to invest their money in US businesses (much less Socialist Motors) if the government can re-write the law AFTER THE FACT?  Isn't that what happened with the oil industry in the middle east (ie, nationalization)?  These guys aren't stupid! 

I never thought I'd say it, but it's beginning to look like Ford is the only hope for the American auto industry as we once knew it.

I think I'm gonna be sick...

Carl Schreiber

[CadZZilla]

local dealer here is safe

[The Tassie Devil(le)]

G'day Carl,

I felt sick trying to understand what you were saying.

Bruce.

[Otto Skorzeny]

I thought the same thing about Ford.

What kind of "incentives" will be given to people who purchase a Government Motors car over the competition (Ford)?

[Porter]

Forrest / Porter -

I can't believe YOU guys are missing the BIG picture here - the 'central authority' is only months away from picking winners and losers in this game.  In fact, it's already started.

First off, the gov't shafts the preferred debt holders (payback to their UAW cronies) EVEN THOUGH IT'S AGAINST THE LAW!!
The case goes to the Supreme Court, who WON'T EVEN HEAR THE CASE!!!  BTW, the case is brought by one of the only SOLVENT states in the union (Indiana) on behalf of their pensioners who are losing their a**es in the 'bankruptcy/restructuring'.  Then the  guy the 'annointed one' put in charge of GM today says 'I don't know anything about cars - 'business is business'.  Dammit, he doesn't need to - all he has to do is whatever Barry Soetoro TELLS him to!   

Watch - the next order of 'business' will be putting Ford out of business - since they're not 'playing ball' like the other two.  Think about it - for any of the hacks Barry installed to oversee GM and Chrysler/Fiat to make any money they STILL have to sell cars - and preferrably more than their competition.  Car purchases are financed, and who owns the banks (as well as Chrysler Credit and GMAC)?  That's right - ol' Barry!  If people won't buy GM/Chry-Fiats, all he has to do is slap a big ($3/gal or better) federal tax on gas, which makes people buy Priuses (which are currently down 45%!) and the clownmobiles Barry will be ordering the 'unholy two' to build.  It also funds 'free' health care...  (2 birds with 1 stone - hell, he should hire ME!)

As for Ford, if they become a (market) threat to Government Motors sales, hell, the banks (owned by Barry) just put heavy incentives into financing what Barry wants the US motoring public to buy (ie, the coming junk he will be forcing Government Motors to manufacture).  Realistically, he could even order banks he controls to finance Fords at a higher rate than the junk his companies will be building (to make his 'cars' more attractive/affordable).  The possibilities are ENDLESS!  Remember - not only does he now control the manufacturers, but the means to finance whatever lawnmowers his companies build as well.  What's more, what investor in their right mind is going to invest their money in US businesses (much less Socialist Motors) if the government can re-write the law AFTER THE FACT?  Isn't that what happened with the oil industry in the middle east (ie, nationalization)?  These guys aren't stupid! 

I never thought I'd say it, but it's beginning to look like Ford is the only hope for the American auto industry as we once knew it.

I think I'm gonna be sick...

Carl Schreiber

Carl,

I hate to quote your entire post but none of your thoughts were beyond my grasp before you posted them. I saw this coming a few years ago.

Just tough to post here at this forum in the past with any type of reality talk, granted this was before GM went chapter 11. Now reality talk is acceptable.

How can I comment further ? It all becomes political and I grew tired of getting censored and deleted here long ago.

Ford is just burning through all of their "cash" if you will, this is a non profit industry. Been too many players for a long time. Big 3 has been phased out by Obongo and his banker puppet masters. I could go on and on here with reality talk - why bother ? Against the forum rules. Has nothing to do with restoring Cadillac's. Granted extraoridaire times.

Porter 

[Tom Hall 7485]

Rich S and Johnsor:  For the manufacturer, the administrative costs of having dealers include training
the dealer's service department, the occasional trip of a zone rep to look at a problem car in a warranty
dispute, co-op advertising reimbursements, mailings, processing new car orders, and so on.  GM
undoubtedly wants to reduce its administrative expenses in dealing with a lot of small-volume retailers. 
They would like to undo to some extent the policy decision they implemented in 1965 when they
dropped the last of their distributors and went factory-direct-to-dealer for virtually all of their US dealers,
including the small-volume ones. 

The Cadillac dealer I worked for was not small-volume; he regularly sold 70 Cadillacs and a nominal
number of Saabs per month in the 1970s.  This is the sort of volume that GM wants for its Cadillac
dealers.  With that said, I should mention that GM terminated that dealership in the 1980s due to what it
called "overrepresentation" in a shrinking big city market.  Perhaps other reasons were that the building
was getting old and the dealer was getting old, too.  In truth, the bigger problems were lower product
appeal and stronger foreign brands. 

Most likely, GM is still deciding how many Cadillac dealers to drop and is doing some projections.  If Mr.
LaNeve has been quoted properly, I hope he isn't confusing cause and effect when it comes to
dealer sales averages.

If GM imagines that it is going to maintain Cadillac sales volume by dropping 25% of its dealers,
particularly in smaller cities where foreign luxury brands provide less intense competition than in big cities,
they are going to be disappointed.  A large drop in the number of dealers will reduce sales nationwide.