Cadillac Touts Virtual Showrooms, Regional Inventory Centers

Cadillac wants more than 400 of its smallest U.S. dealers to turn themselves into “virtual showrooms” that fulfill orders from inventory housed by regional supply centers.

Johan de Nysschen, president of the General Motors Co. brand, tells Automotive News the voluntary scheme would reduce the cost of operating outlets that sell no more than 50 Cadillacs per year.

Under the plan, small stores would eliminate on-site inventory. Instead, their staffs would visit prospects at their home or workplaces and make sales with the help of touchscreen tablets and GM-supplied “virtual reality” devices. Ordered vehicles would then be delivered to the dealership from centralized vehicle depots.

Cadillac currently has roughly three times as many dealers as BMW or Mercedes-Benz but generates half of each marque’s annual sales, according to AN. De Nysschen has been eager to reduce the brand’s dealer count and elevate the buyer experience to at least match that of its foreign-based rivals.

Dealers learned about the plan in detail last week. AN says the program’s elements were worked out over the past year by GM and Cadillac’s dealer council.