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GM cutting most cadillac dealers
The Business Journal ^ | September 4, 2009 | Rich Kirchen

Posted on 09/07/2009 2:31:27 PM PDT by MamaDearest

General Motors Corp. is dropping the franchises of 70 percent of Cadillac dealerships nationwide and southeast Wisconsin is no exception, leaving only two area dealerships confirmed as continuing beyond 2010 — Metropolitan in West Allis and Crest in Brookfield.

Metropolitan Cadillac, in fact, is running commercials urging customers whose dealers are closing to switch to its dealership.

“My understanding is that there are a lot of Cadillac stores closing,” said Metropolitan president Max Stephenson. “The only two that are staying open are Metropolitan and Crest.”

General Motors will not disclose the identities of dealerships that are closing. Only one area Cadillac dealership has identified itself as dropping its Cadillac status: Amato Cadillac in Glendale, which Aug. 21 became a Nissan dealership.

“We had seven Cadillac dealerships in our zone — we were very over-dealered,” said owner John Amato.

Don Schultz, a sales manager at Crest Cadillac, said the dealership at 12800 W. Capitol Drive is surviving as a new vehicle franchise but declined further comment.

Metropolitan and Crest ranked as the top two dealerships for new Cadillac car sales in 2008 with a 31.3 percent and 23.8 percent market share, respectively, according to Reg-Trak Inc., Waterloo. In the first half of 2009, the two dealerships again led with 25.3 percent for Metropolitan and 18.6 percent for Crest.

Russ Darrow, who owns Darrow Cadillac in Waukesha, declined to comment on the status of his dealership. Representatives of four other southeast Wisconsin dealerships either could not be reached for comment or didn’t respond to calls seeking comment.

Not all Cadillac dealers that are losing their franchise will follow Amato’s quick exit. They have until October 2010 to close, but will not receive any new vehicle inventory from GM between now and then.

GM spokeswoman Susan Garontakos said the company plans to reduce the number of Cadillac dealers nationwide from about 1,400 to about 400 by the end of 2010.

GM evaluated dealerships’ sales figures, capital structure and customer service record, Garontakos said. Dealers can appeal GM’s actions, but the company’s executives in August ruled on the appeals, leaving little recourse at the moment for those who lost appeals, she said.

The automaker believes reducing the number of dealerships will enable GM to more effectively compete with BMW, Lexus and Mercedes, Garontakos said. Those other luxury car makers have between 200 and 400 dealerships each nationwide, she said.

“Having more stores doesn’t mean you generate more sales,” Stephenson said. “Some were selling only four to five per month.” Metropolitan Cadillac is at 10221 W. Arthur Ave., near International Autos, which sells Mercedes, Audi and BMW.

Sales remain slow in the recession, but Stephenson is hoping two new Cadillacs for 2010 generate customer interest — the SRX crossover and the CTS Sport Wagon.

Stephenson said he’s not gloating over being a survivor. “We’ve all been through some really tough times,” he said.


TOPICS: News/Current Events
KEYWORDS: automakers; cadillac; cutting; dealerships; generalmotors; gm
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1 posted on 09/07/2009 2:31:28 PM PDT by MamaDearest
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To: MamaDearest

Uh. Nahhh, I’d get banned...


2 posted on 09/07/2009 2:32:45 PM PDT by null and void (We are now in day 229 of our national holiday from reality. - 0bama really isn't one of US.)
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To: MamaDearest

The only half way decent car they still make and they’re sending it to clunker heaven...I guess that’s liberal logic.


3 posted on 09/07/2009 2:33:40 PM PDT by JohnLongIsland
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To: MamaDearest
No problem just setup next to the dollar stores with the Esclades got stimulus money coming by the truck full.
4 posted on 09/07/2009 2:34:19 PM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: MamaDearest

What will pimps and rap stars drive?

Other than that gawdawfully ugly XLR, non-Blacks abandoned the brand 20 years ago.


5 posted on 09/07/2009 2:34:24 PM PDT by freedumb2003 (Communism comes to America: 1/20/2009. Keep your powder dry, folks. Sic semper tyrannis)
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To: MamaDearest; All

New! From GM (Government Motors)!

Following The Current Trend of Retro Designed Automobiles

The 0bamawagen

New! From Gov't Motors! The 0bamawagen!
Click the Pic

6 posted on 09/07/2009 2:34:49 PM PDT by Fiddlstix (Warning! This Is A Subliminal Tagline! Read it at your own risk!(Presented by TagLines R US))
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To: MamaDearest

can’t imagine why people wouldn’t want to pay a $10,000 premium for a Chevy with a Cadillac badge.


7 posted on 09/07/2009 2:34:57 PM PDT by Chet 99
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To: JohnLongIsland

Don’t Caddies take a lot of gas per mile? I always heard they were on the gas guzzling side. Not very green.


8 posted on 09/07/2009 2:35:30 PM PDT by Achilles Heel
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To: MamaDearest

More proof the recession is over.


9 posted on 09/07/2009 2:38:53 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: Chet 99

That and they have golf tees embedded in the top of the dashboard


10 posted on 09/07/2009 2:39:25 PM PDT by al baby (Hi Mom ;))
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To: MamaDearest

Well I’m glad to see that the bank bailout that (Paulson, Bush, Obama, Geithner, and Bernanke) shoved down our throats has helped us to avoid all this prolonged misery...


11 posted on 09/07/2009 2:40:31 PM PDT by Tempest (I believe in the sanctity of life... As long as you can afford it.)
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To: MamaDearest

Obviously these Caddy Dealerships set to close didn’t ‘contribute’ enough to Dear Leader...


12 posted on 09/07/2009 2:40:57 PM PDT by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: MamaDearest

Think green!


13 posted on 09/07/2009 2:41:19 PM PDT by EGPWS (Trust in God, question everyone else)
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To: MamaDearest
The automaker believes reducing the number of dealerships will enable GM to more effectively compete with BMW, Lexus and Mercedes, Garontakos said.

Actually, to successfully compete with other companies you have to find a way to differentiate yourself from them. One of the reasons my folks bought Dodges was because the dealership was one block way on our street ... downhill!

Also, if you are GM, and someone comes in looking at the Caddies, but can't quite afford them, you have the opportunity to say, "Well, this Buick LeSabre is a nice car for less money, why don't we take a ride?" That way you still sell a car.
14 posted on 09/07/2009 2:41:27 PM PDT by Dr. Sivana (There is no salvation in politics.)
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To: freedumb2003

Late model, decked out Buicks.


15 posted on 09/07/2009 2:42:00 PM PDT by Secret Agent Man (I'd like to tell you, but then I'd have to kill you.)
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To: Fiddlstix

I like that Obamawagen. It is a perfect fit for anyone who is constantly going around in circles.


16 posted on 09/07/2009 2:43:40 PM PDT by InterceptPoint
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To: null and void

I was amused noting how Government Motors is “streamlining” its vehicles consumers will (eventually) be able to buy. How long will they permit Nissan, Toyota, Kia, et al to steamroller them in sales? Just like they plan to force talk radio off the air (charging 100% of operating fees), they’ll be tightening the noose for competition auto business profit as sure as I am sitting here now. Besides, the sting of business lost to competition in their “cash for clunkers” fiasco has been thrown in their collective faces - question is, when will they retaliate?


17 posted on 09/07/2009 2:44:26 PM PDT by MamaDearest
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To: MamaDearest
General Motors Corp. is dropping the franchises of 70 percent of Cadillac dealerships nationwide

Undoubtedly, Obama's Government Motors Czar has determined that 70 percent of Cadillac Dealers nationwide failed to properly support our Glorious Leader.

18 posted on 09/07/2009 2:45:13 PM PDT by kennedy (I'm a Kennedy with no experience or qualifications too! Where do I sign up for MY Senate seat?)
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To: MamaDearest
Amato Cadillac in Glendale, which Aug. 21 became a Nissan dealership.

IMO, great move. Let GM go under for all I care. I certainly won't be buying anything from them.

19 posted on 09/07/2009 2:45:20 PM PDT by kcvl
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To: MamaDearest

This has been an ongoing process since back in June 09 when GM was making the list of dealership closures. GM has/had some 1422 Cadillac dealerships which a large percentage are going to get cut by 2010.

http://www.autoblog.com/2009/06/09/under-fire-gm-targets-cadillac-dealers-for-closure/


20 posted on 09/07/2009 2:45:42 PM PDT by deport
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To: MamaDearest

Ha Ha Ha Ha Kenyan Clown Motors is going to compete with Mercedes !!! Ahh Christ that is funny NOT one of them NOT ONE is fit to even sweep the floor there.


21 posted on 09/07/2009 2:45:42 PM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: MamaDearest

This is just insane. 70% just does not make any sense unless they are “friends” of Obama and associates.


22 posted on 09/07/2009 2:46:15 PM PDT by Parley Baer
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To: JohnLongIsland
This SOB wants every American to drive a puddle jumper.
What in the hell is a 6'4” 235lb guy supposed to do in a Geo Prizm? This a - - hole is a idiot.
23 posted on 09/07/2009 2:48:28 PM PDT by Mr. Wright
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To: MamaDearest
The biggest Cadillac dealer in the Charlotte area turns 80 this Thursday. But I'd be surprised if GM closes him down.


24 posted on 09/07/2009 2:49:00 PM PDT by southernnorthcarolina (Now with ConstructionCam! Click on my name and follow the progress.)
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To: InterceptPoint
I like that Obamawagen. It is a perfect fit for anyone who is constantly going around in circles.

Yes. And among its other features. It can only move to the left.
An ideal car for liberals.

25 posted on 09/07/2009 2:50:47 PM PDT by Fiddlstix (Warning! This Is A Subliminal Tagline! Read it at your own risk!(Presented by TagLines R US))
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To: null and void
Uh. Nahhh, I’d get banned...

So would I.

(btw, both of us are RACIST)

/s

26 posted on 09/07/2009 2:52:01 PM PDT by SIDENET ("If that's your best, your best won't do." -Dee Snider)
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To: null and void

What the rappers and gang-bangers going to do without the Escalade...


27 posted on 09/07/2009 2:54:20 PM PDT by devane617 (Republicans first strategy should be taking over the MSM. Without it we are doomed.)
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To: MamaDearest

Dang. And I wanted a CTS sooooooo bad.


28 posted on 09/07/2009 2:57:10 PM PDT by Fast Moving Angel (GOP: Stop listening, start doing -- we need new leaders!)
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To: Mr. Wright
Liberal Progress

29 posted on 09/07/2009 2:58:30 PM PDT by JohnLongIsland
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To: devane617
The ones already made will become collectors items and be well preserved and cared for throughout the generations(ironically receiving better care than humans).
30 posted on 09/07/2009 2:58:33 PM PDT by norraad ("What light!">Blues Brothers)
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To: MamaDearest

It is tough to sell a premium vehicle if you have to travel long distances to get service.


31 posted on 09/07/2009 3:00:25 PM PDT by Pearls Before Swine (Is /sarc really necessary?)
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To: Achilles Heel
Don’t Caddies take a lot of gas per mile? I always heard they were on the gas guzzling side. Not very green.

So? Who cares?

32 posted on 09/07/2009 3:04:09 PM PDT by buccaneer81 (ECOMCON)
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To: buccaneer81

The radical greenies.

Premium vehicles, for the most part, don’t get good gas mileage. So off with their heads.

Next up: trucks and SUVs.


33 posted on 09/07/2009 3:15:02 PM PDT by Bratch
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To: southernnorthcarolina

Our local Cad/Buick/GMC dealer for decades, didn’t wait...he shut it down and retired when the gov’t got involved with GM.


34 posted on 09/07/2009 3:17:26 PM PDT by lonestar (Obama is turning Bush's "mess" into a catastrophe.)
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To: MamaDearest
Genius or is this the Schlitz kid saying "we could make a fortune if we just tweak the recipe ..."
35 posted on 09/07/2009 3:21:30 PM PDT by NonValueAdded ("The President has borrowed more money to spend to less effect than anybody on the planet. " Steyn)
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To: MamaDearest

36 posted on 09/07/2009 3:26:14 PM PDT by LA Woman3 (Barack Obama hates old people...)
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To: freedumb2003

I’ve got a SRX and love it.
maybe I’m the only white guy with one?


37 posted on 09/07/2009 3:28:18 PM PDT by nascarnation
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To: Achilles Heel

My SRX gets 2 mpg better than the Jeep Cherokee I had.
19 avg vs 17 avg.


38 posted on 09/07/2009 3:29:18 PM PDT by nascarnation
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To: MamaDearest
That's OK, they can close all of them. Then they can close all of GM and save the taxpayer billions.

Maybe someone will start another car company that is will not be run by the government. I have owned Chevrolet for more than 30 years but when the Silverado dies next time I will not be buying a truck from a government run company.I will be purchasing my next truck from Ford or Toyota.

39 posted on 09/07/2009 3:29:58 PM PDT by reader25
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To: MamaDearest
I guess they identified the rest of the Republican party donors...
40 posted on 09/07/2009 3:42:30 PM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: MamaDearest
this should help the unemployment rate.
41 posted on 09/07/2009 3:49:42 PM PDT by TexasFreeper2009 (Obama lied, the economy died)
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To: JohnLongIsland

That was my first thought too. One of the best selling lines GM has so they are going to stifle it.

Well, I’m in Texas so I doubt any dealerships in my immediate area will be closing. We love our Caddies down here.


42 posted on 09/07/2009 4:59:04 PM PDT by wayoverthehill
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To: LA Woman3

Sewell won’t be going anywhere. It’s the premier dealership in Dallas with stores in New Orleans and San Antonio as well.

I used to work there. It’s a class outfit.


43 posted on 09/07/2009 5:05:31 PM PDT by wayoverthehill
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To: Fast Moving Angel

I’ve got an ‘06. Love it, love it.

Keeping it too. LOL.


44 posted on 09/07/2009 5:07:03 PM PDT by wayoverthehill
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To: nascarnation

>>I’ve got a SRX and love it. maybe I’m the only white guy with one?<<

LOL. I meant SRX is the only model of Caddies whites buy. But I think it is #2 to the Aztek as the ugliest car ever made.

Hey, but YMCV* :)

*Your Mileage Clearly Varies


45 posted on 09/07/2009 5:08:16 PM PDT by freedumb2003 (Communism comes to America: 1/20/2009. Keep your powder dry, folks. Sic semper tyrannis)
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To: JohnLongIsland

I have never wanted to buy a GM product until the last two years. If I were in the market and had the money, I would have liked to buy the Pontiac G8 GXP, Cadillac CTS-V, or the Corvette ZR-1. They always seem to kill the best cars they make.


46 posted on 09/07/2009 6:04:10 PM PDT by Skenderbej
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To: Achilles Heel

Part of the bailout agreement was that they had to dump the only good Cadillac in existence, the CTS-V. I believe they can’t make that car beyond 2010 because of its gas-guzzler label (13/19 city/hwy).


47 posted on 09/07/2009 6:06:16 PM PDT by Skenderbej
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To: Fast Moving Angel

I’m with you, if you’re serious. I wish I could afford a CTS-V!


48 posted on 09/07/2009 6:08:30 PM PDT by Skenderbej
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To: wayoverthehill
What will you do if the Cad dealers close, when it needs service? Find a good independent shop? What about parts availability?

[envious]

49 posted on 09/07/2009 6:42:34 PM PDT by Fast Moving Angel (GOP: Stop listening, start doing -- we need new leaders!)
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To: Skenderbej

Very serious. I rented one a couple of summers ago when some friends came to town. Never thought I was much of a Cadillac person — various family members had had them since the ‘50s, and I never was impressed. But I sure fell in love, big time, with this CTS. Is the CTS-V the 8-cylinder?


50 posted on 09/07/2009 6:45:14 PM PDT by Fast Moving Angel (GOP: Stop listening, start doing -- we need new leaders!)
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