GM's retail consolidation will form "luxury superstores"

Among the many ills plaguing automakers, and General Motors in particular, is an excessive amount of dealers selling their wares through competing outlets. GM has decided to rectify the matter by combining its top three "luxury" marques – Cadillac, HUMMER and Saab – into megastores that aim to provide consumers with a variety of choice without watering down each brand's distinct niche.

The plan involves consolidating the 1,400 Cadillac dealerships with the 238 Saab and 170 HUMMER outlets to form a one-stop shop for all things at the high-end of the General's spectrum. There have already been a few cases where GM has helped larger dealers buyout Mom and Pop operations that weren't willing to expand or were looking to get out of the retail game entirely. While the move has the potential to make it easier for consumers to get everything they want under one roof, the amount of capital GM might need to enable larger to dealerships to consume their smaller competitors could prove to be pricey. Plus, it's going to take a top-notch interior designer to combine the Quonset hut theme of HUMMER with the Kenny G stylings of Saab into a cohesive environment.

[Source: Automotive News – Sub. Req.]

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