Could disruption in the luxury car market cause some
consumers to change lanes?

Issue:

A recent story from Automotive News explained that as many as 1 in 6 Cadillac dealers will accept a buy-out from General Motors to cease selling the brand. Cadillac is reportedly shifting to an all-electric vehicle line-up, which apparently made some dealerships uncomfortable. GM did not announce which dealers were taking the deal, and that may lead to some confusion among existing owners and potential buyers of the brand.

Opportunity/Idea:

If you're a Cadillac dealer and planning to stay open, there could be a cloud of confusion about your future. If you're a Cadillac dealer and planning to end your relationship with the brand, does that mean having a model close-out sale when those announcements are made public? Does it mean you will need to lean more heavily on your other name plates (GMC, Buick, other) to drive revenue? Or does it mean you might be left as an independent used-car-only dealership? And if your dealership offers another luxury brand that would like to compete for the Cadillac consumer (Jag, Lexus, Infiniti, et al)… is now the perfect time to explain why your product line and dealership is the ideal option to consider for former Caddy fans?

Ways you might use this issue to gain an appointment:

  • To the Cadillac dealership: "With roughly 1 in 6 Cadillac dealerships across the country accepting a buy-out offer from General Motors, consumers might be left wondering about the future of some dealerships. It would be smart for us to talk about the best way of presenting the future of [dealership name] both to past customers and future prospects."
  • To competitive brands: "With as many as 1 in 6 Cadillac dealerships across the country planning to stop selling the brand, this could be an opportunity to convince those luxury buyers to get behind the wheel of a [brand] from [your dealership]. I would be happy to create a research-based profile of luxury car owners in our market, and offer some ideas about how we can best connect with those prospective buyers."

Using this issue in a Needs Analysis:

  • To the Cadillac dealership: "General Motors has announced that as many as 1 in 6 dealerships will be walking away from the brand. Is that causing you headaches because people are jumping to conclusions about your lot?"
  • To the competitor: "General Motors has announced that as many as 1 in 6 dealerships will be walking away from the brand. Does that create an opportunity for you to become the next best alternative for some of those luxury buyers?"

Sources:

https://www.autonews.com/dealers/about-150-cadillac-dealers-taking-buyouts-report-says

The WSJ version

https://www.wsj.com/articles/about-150-u-s-cadillac-dealers-to-exit-brand-rather-than-sell-electric-cars-11607111494?st=x43nfk8r3exhlvg&reflink=desktopwebshare_permalink

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