DETROIT — As one fifth of Cadillac's U.S. dealers walk away from their franchises, the luxury brand is expanding its reach with the help of retailers who are bullish about its transition to a fully electric lineup.
Cadillac is entering new luxury markets and reestablishing itself in crucial areas it had ceded to rivals — including Beverly Hills, Calif., where it hadn't been since the 1980s, and its former home base of Manhattan, N.Y., where its only store closed last year. Some established Cadillac dealers are scooping up additional stores, while a few dealers are getting involved with the brand for the first time.
At least eight dealership groups have acquired Cadillac stores this year. Recent deals include acquisitions by Frank Kent Motor Co. and Ken Garff Automotive Group in Texas and by Ciocca Dealerships in Atlantic City, N.J. The purchases show confidence in Cadillac as it implements a plan to sell only electric vehicles by the end of the decade, even with the potential for low volumes to start.