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http://www.autoblog.com/2010/03/16/c...m-dealerships/

Cadillac stores make up bulk of reinstated GM dealerships

by Chris Shunk (RSS feed) on Mar 16th 2010 at 6:01PM

When General Motors entered bankruptcy last spring, the automaker announced the closure of 1,350 dealers and another 650 dealerships that had more than one brand. Recently, The General announced that it planned to reinstate 661 dealers of the 1,161 that applied for a stay of execution, though GM was short on details surrounding why those dealers were chosen. Many of those dealers never actually left the GM dealer group when the automaker gave dealers until October, 2010 to wind down their stores.

A report from Automotive News quotes multiple sources who say that a large percentage of reinstated dealers carried the Cadillac brand. While GM hasn't publicly announced any brand breakdowns of which dealerships were reinstated, 55 of the 75 dealers AN spoke to that were given a new lease on life were of the Wreath and Crest variety.

When GM sent out notices to dealers around the country informing owners that their dealerships were being phased out, a large portion of those stores were reportedly rural Cadillac outlets. AN reports that The General was looking to decrease the dealer footprint of Cadillac from 1,422 U.S. stores to closer to 500. The idea was to more closely mimic the urban-centric model used by Lexus and BMW; a plan that AN says GM has now ditched.

Still, GM reportedly earmarked 922 Cadillac stores for closure. Even if the majority of reinstated stores sell Cadillacs, we're thinking The General has still managed to significantly shrink the retail footprint of its luxury marquee.

[Source: Automotive News - Sub. Req. | Image: Mark Wilson/Getty Images]