Cadillac Dealer Network Shrinks As Electric Switch Begins | Automotive News

In a process that is now largely complete, luxury automaker Cadillac has reduced the number of retail outlets it owns in the United States. By the time it’s all said and done (by the end of this year), the brand will have 560 U.S. dealers under its wing, down 30% from the 875 it had at the start of this year, and nearly by 40% compared to the 930. it had in 2018.

Behind the reduction is Cadillac’s shift to electric models, whereby it wants to have only all-electric vehicles in its lineup by 2030. Dealers who do not want to invest in new equipment and training for themselves ‘adapt to change are offered a buyback. Obviously, some accept the offer.

It’s worth noting that the remaining dealers represent 90 percent of the brand’s current sales, according to Automotive News, which means the cut also serves to eliminate low-volume dealerships.

Currently, Cadillac has more than 120 Cadillac dealers in Canada, six of which exclusively sell Cadillac products. We do not know at this time if there will be a loss of Cadillac dealers in Canada, but we have asked representatives of the brand’s Canadian division. We will update our story as needed.

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A Cadillac dealership in Woodrbridge, Ontario

Even with the cuts, Cadillac continues to have more outlets than most other luxury automakers and has even opened new outlets in New York, Atlanta, San Francisco and Beverly Hills. In contrast, Tesla does not have franchise dealers and, like Rivian and Lucid, sells its vehicles primarily or exclusively online. Cadillac has reiterated its commitment to operate in-person showrooms, although it now offers the Cadillac Live online showroom to customers.

Cadillac’s first fully electric model to come will be the Lyriq, which is slated for launch next summer. Cadillac says it has generated interest in the model from 216,000 potential buyers to date. The key word here is of course ‘potential’, but there is still reason to believe that the automaker will do well with the compact luxury SUV.


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Sylvia F. Hernandez

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