The dealership will be run by Bauer Millett, alongside its existing Hummer site in Manchester.
Mitch Millett, Bauer Millett managing director, said: “We’ve always wanted to be part of Cadillac’s progress. We really relish the opportunity to be the only independent retailer for Cadillac.”
Jonathan Nash, Cadillac managing director, said: "Bauer Millett is the obvious choice. It has a lot of experience with American vehicles and bespoke clients."
Nash said Manchester was a natural choice for a new Cadillac dealership. "It covers a big population area and we expect to attract customers from Cheshire and as far as Liverpool."
While Millett said there were too many new products in the next year to judge approximate volume sales, Nash suggested between 60 and 100 units would be sold from the dealership by the end of 2008.
Nationally, Nash expects 500 cars to be sold next year. To the end of November this year, the company had sold 340.
“It’s not all about sales. We wanted to find the right person and the right culture for Cadillac, and we believe we have found this with Bauer Millett,” said Nash.
General Motors UK, Cadillac’s owner, has identified nine key UK cities to open Cadillac dealerships.
However, Nash said it will not be looking to expand in the next six months.
“We will see how the Manchester site progresses in the next six to 12 months, and then look again to see if there is sufficient interest and if it is viable.
“With the new CTS launch in the summer, we expect a step change in volume opportunity, and that may well affect site expansion.”
Bauer Millett was the UK’s Hummer importer before GMUK gave it the franchise this year.