by Damon Lavrinc

One of the issues ailing domestic automakers is a bloated sales network, which sometimes includes pitting two dealers of the same brand against one another within the same market. Chrysler, Ford and General Motors have been trying to make inroads into this problem over the past year, and while these efforts are for the good of the company, the effects take their toll.

According to Automotive News, the Big 2.5 cut 462 dealerships between them in 2006. So far in 2007, GM has killed off 222 of its own dealerships, compared to this time last year. Much of this effort is the consolidation of franchises that only sold a few of the automaker’s brands, to now include as many as they can handle (i.e. a GMC dealership now carries Pontiac, Buick, Cadillac, HUMMER, Saab, etc.)

GM isn’t alone in their neighborhood downsizing, as both Chrysler and Ford have made significant cutbacks so far this year, with the former nixing 134 dealerships, while the latter cut 126, when compared to 2006 figures.

The upside to all of these cutbacks is more profits for fewer dealers, but at the same time, dealers that have been in the business for decades are being forced to sell their stores to local competitors. As expected, these retailers are leaving their livelihood feeling bitter and dejected.

Whether or not any of this will make a difference to the Big 2.5’s bottom line remains to be seen, but it should be interesting to see how many total dealers were lost in 2007 and how many more will be killed off in 2008.

[Source: Automotive News (Sub. Req.)]

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by Noah Joseph

It’s official. It’s been confirmed: Cadillac is preparing a new V12 flagship. That’s straight from the mouth of our favorite man in the business, Bob Lutz. On a recent trip across the pond, GM’s venerated product guru confirmed in an interview to the British car magazine AutoWeek that they are indeed working on a twelve-cylinder engine, slated to power a new range-topping, import-beating “Cadillac of Cadillacs,” a super-luxury-sedan to rival the likes of the Mercedes S-Class and Lexus LS in the grandest of American style.

The new powerplant is being fabricated from two of GM’s 3.6-liter 60-degree V6 engines mounted on a common crankshaft. Far from relying solely on cylinder count, sources speculate the engine will also benefit from such features as direct injection and cylinder deactivation, resulting in a 7.2-liter V12 with somewhere in the neighborhood of 600 horsepower and 540 lb-ft of torque.

And just where is GM testing such a behemoth of an engine? In Australia, of course! As has become de rigeur for American automakers of late, GM is relying on its Australian subsidiary to run the development work on the new flagship engine. Holden is reported to have already begun testing mules, based on a Commodore with a stretched-out engine bay, at its Lang Lang test center near Melbourne. Although the Zeta-based Commodore, (a.k.a. the upcoming Pontiac G8) is being used strictly as a test bed for the time being, it could end up providing the underpinnings for the Cadillac megasedan when the time comes.

Lutz has been pushing for a top-tier Cadillac for years now, and the impetus for its development has apparently come from the feedback received by the Cadillac Sixteen showcar debuted back in 2003. Although the showcase V16 engine was ruled out, apparently the V12 has gotten the green light for development. Shoot for the stars and land on the moon, eh Bob?

[Source: Automotive News - subscription required]

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by Sam Abuelsamid

No, Cadillac has not decided to slap their grille and headlight stickers on one of the standardized NASCAR body shells. The SCCA World Challenge will be running a 50 minute sprint race as one of the supporting events for the Memorial Day weekend festivities at Charlotte Motor Speedway. I refuse to call venues that once had real names by their bought and paid for names, hence Pine Knob and Laguna Seca will always go by those names as far as I’m concerned, but I digress.

2006 NASCAR Champ Jimmie Johnson will make a special appearance behind the wheel of one of the Cadillac CTS-Vs campaigned by Team Cadillac at the May race in Charlotte. Apparently, they’ll be putting some barrels or other obstacles on the high banks to force the drivers to swing the steering wheel to the right occasionally for this race. The 2007 World Challenge Series opens up at Sebring next weekend. The GM press release is after the jump.

[Source: General Motors]

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by Damon Lavrinc

During an interview with David Sedgwick of Automotive News, Bob Lutz, GM’s vice chairman, revealed that plans to offer a Cadillac in the $150,000 to $180,000 realm are still on the table. Although production of the 2003 Sixteen concept has come up in previous conversations, within GM, it has always been more of a styling exercise, built to influence future Caddy designs. That said, the General has researched the idea and came away impressed with the business case.

Another option would be the production of a vehicle similar to the 2002 Cien concept (pictured) that Lutz maintains would cost less to produce, but would sell in smaller numbers.

If such a vehicle would come to fruition, expect power to come from a V12, a V10 or even a hybrid powertrain. The latter may be more appealing, as Lutz admits that federal fuel economy standards are going to have a great deal of influence on future models and GM’s focus is beginning to turn towards more efficient vehicles.

[Source: Automotive News – Sub. Req.]

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by Chris Shunk

The amount of automotive dealerships in the United states is staggering. Domestic dealerships alone number over 15,000 in the US. For perspective, there are less than 13,000 McDonald’s restaurants in the US. At the current rate, the Detroit three’s dealerships are shrinking at a three- to four-percent rate, much slower than share declines that are crippling the domestic automakers.

The sales number gaps between the domestics and Asians is equally astonishing. Your average Dodge dealer sells only 375 vehicles per month. In stark contrast, your average Toyota dealership hits nearly 1700 sales in the same time period. Steven Girsky, an industry analyst and former GM adviser, placed the desired amount of downsizing at two-thirds of the entire domestic dealer-body.

While most domestic auto dealers will tell you that there are too many dealerships out there, they are understandably inclined to think the other guy should shut down instead of them. Others are looking for corporate buyouts from the Big Three, but Ford, GM, and Chrysler just can’t afford to foot the bill for a combined 10,000 closures, many of which would cost well over $1 Million dollars. Ford and Chrysler are actively trying to buy out dealers, but GM is saving its money for more new product. The targeted dealer buyouts from Ford and Chrysler will likely be far fewer than what is needed. Overall, this means little to you the customer. If you’re in the mood for a new car and don’t want to spend all day waiting to be assisted, it may be a good idea to hit your neighborhood Dodge dealer. You can walk in the door and have no trouble finding a salesman that’s willing to deal to get a sale.

[Source: Detroit News]

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by Dan Roth

Autoblog’s man at Barrett-Jackson, Frank Filipponio, continues to send us reports from the front lines. Oh man, check out the landau roof on this thing! Riding around in this sucker will make you feel like a king. Not just any king, the King. Custom-car designer John D’Agostino has named this rare 1959 Eldorado Seville, Elvis. It’s definitely a ride befitting Mr. Presley’s opulent taste. A rhinestone-studded jumpsuit would be proper attire for the lavender hued leather inside. You’d look equally as badass wearing the all-black leather get-up from the ‘68 comeback special. The best way to go would probably be to bypass all those ’60s and ’70s looks altogether and go with the ’50s Elvis uniform. Over the top touches like a princess phone, crystal ashtrays, solid silver Cadillac crests inlaid with rhinestone push the price up to $1m. That’s a lot of dough to shell out for a car that shares the face of Ecto-1, but this is truly a lead-sled to lust after. If the exterior and its 3-position roof don’t get you, perhaps the tri-power 390cid V8 will make you itch like a man on a fuzzy tree. At least one bidder thought it was worth $250,000.

[Source: Barrett-Jackson via Frank Filipponio]

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