GM to trim up to 700 Cadillac dealers

GM restructuring is not limited only to brands that are going away – Cadillac will see its fair share of changes as well as part of GM’s bankruptcy and restructuring.

If you look at Cadillac as it compares to its luxury competition – it is selling very few cars with many more dealers – so GM is planning on cutting as many has half its 1400 dealers to get its per-dealer volume up.

This would result in average volume per dealer up to 500+ units per year. This compares to the over 1100 units per dealer that Lexus sells per each of its 220+ dealers. This would allow Cadillac to keep broader coverage as well by putting a dealer closer to most customers than its competition.

So, some dealers get the axe, but the ones that remain should be able to do better, be more profitable, and ideally provide better customer service without damaging their bottom line.

We’ll see.