Cadillac Dealer Location and Geography of Sales


A new Cadillac franchise was opening near an existing Cadillac dealer. State regulation permitted the dealer to challenge General Motor's right to grant the franchise, given its proximity of less than five miles.


To assess the impact on sales of the existing dealer, Analysis & Inference conducted a statistical analysis of the address of every luxury car purchaser in the area for several years. This project dealt with new car buyers' choices among competing luxury brands, using an estimated model of sales by radial distances from a dealer. Differing price levels of multiple brands were also considered.


The Board decided for the existing franchisee. The lawyer for the franchisee said about A&I's work: "We won! Thank you for your credibility."