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mcgrathauto
- Posted at 8:55 am
Reinstatements pull back from vision of Lexus-like network
General Motors Co. has scrapped a plan to reshape its Cadillac dealer network in the image of Lexus.
GM had said it wanted to cut the number of Cadillac franchises by two-thirds — from 1,422 on Jan. 1, 2009, to about 500 by the end of this year. That plan would have put it in line with import luxury brands, which typically use a few hundred dealerships and focus on coastal urban markets.
Now GM is using dealer reinstatements to rebuild its network of small-town Cadillac dealerships, interviews with dealer lawyers, consultants and advocates showed.
The dealer representatives interviewed by Automotive News said 55 of their 75 clients that are to be reinstated are rejected Cadillac showrooms. The vast majority of those Cadillac dealerships, which were being wound down for closure by October, are in rural areas or small towns, the interviews showed.
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