Cadillac wants smaller dealers to upgrade to 'boutique' stores to take on German luxury brands

Associated Press

Cadillac wants about 700 smaller dealers in the U.S. to create "boutique" stores that focus on the luxury brand.

The move outlined Thursday at the Washington Auto Show is designed to improve a customer's buying experience to better compete with BMW and Mercedes.

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Cadillac now has 929 dealerships nationwide. Another 700 sell Cadillacs along with Chevrolet or other GM brands. Those would become boutique locations with specially trained salespeople and service and luxury features.

The new stores would feature electronic systems that would let shoppers quickly configure several models as well as exterior colors and other options. The systems could even show holograms of the cars.

GM says it won't close dealerships and there will be financial incentives to reward dealers for investments.