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Dealer Lobby to Scrutinize Cadillac Plan

14K views 74 replies 52 participants last post by  Lee N Burns 
#1 ·
Dealer lobby to scrutinize Cadillac plan
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Mike Colias



Cadillac’s dealers won’t be the only ones listening intently this week when brand chief Johan de Nysschen begins laying out the details of his new dealer-incentive program, Project Pinnacle.

State dealer associations and the National Automobile Dealers Association will be poring over the plan too. Dealer attorneys say the outline presented to retailers so far indicates that the plan may test the bounds of state franchise laws meant to protect dealers from unequal treatment by the factory.

NADA last month surveyed some Cadillac dealers about Project Pinnacle, a broad new framework for how Cadillac compensates its retailers for new-vehicle sales. One question from NADA’s online survey asked whether dealers think the program aims to squeeze out smaller stores, according to several dealers who filled it out.
 
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#3 ·
It doesn't have to make sense to you, it only has to make sense to those dealers. Perhaps the money they make on service keeps it worthwhile...

Regardless, this does seem like a plan to squeeze out the small dealers. Considering how much GM professes to love the franchisee dealership laws it vigorously tries to uphold against Tesla they should abide by them themselves. I am quite cynical on pinnacle.
 
#8 · (Edited)
I have been to small dealerships that sell Cadillacs, and they shouldn't be. Some were old, un-renovated, and not at all a place to go and drop up to $100k on a new Caddy.
It's about brand perception and the first tangible point of contact is the dealership and the experience there. I'm for Mr. de Nysschen's overhaul plan and it's something that should have been done 20 years ago. Every Chevy dealer isn't allowed to sell the new C7 and that is for a reason. The same should be true for non-standalone Cadillac dealers within GM.
Cadillac should mandate that dealers cut ties with Vogue and other suppliers of those unsightly landau - convertible tops, white walls with a gold line, overwrought wheels, ridiculous grills, etc. They should be required to use only select, approved suppliers to add aftermarket equipment to any Cadillac. Some of the ridiculousness I see on some Cadillacs is totally offsetting much of their marketing efforts, and continuing to hurt their reputation in the minds of fickle luxury buyers.

This is something that HAS to be done in order for Cadillac to achieve its aspirations of not only competing well with the competition, but also being taken seriously on a global luxury scale.
 
#12 ·
Absolutely brilliant.

Cadillac does need a taste clause. Here in Phoenix, one of the Cadillac dealers seems to slap an extra wreath & crest on the sail panel of every single car they sell - you know, just in case someone can't tell it's a Caddy. I've even seen it done to an ATS that had the new crest w/o wreath. Tacky, tacky, tacky - and I'm willing to bet they chisel the buyers a good $500 a pop to cr*p up their cars like that.
 
#10 ·
I have been to small dealerships that sell Cadillacs, and frankly, they shouldn't have been. Some were old, un-renovated, and not at all a place to go and drop up to $100k on a new Caddy.
It's about brand perception and the first tangible point of contact is the dealership and the experience there. I'm for Mr. de Nysschen's overhaul plan and it's something that should have been done 20 years ago. Every Chevy dealer isn't allowed to sell the new C7 and that is for a reason. The same should be true for non-standalone Cadillac dealers within GM.
This is something that HAS to be done in order for Cadillac to not only achieve its aspirations of competing well with the competition, but also being taken seriously on a global luxury scale.
 
#21 ·
Tough to establish a top tier image while selling your luxury brand out of what looks and smells like a 1980s pawn shop. I hope JDN sticks to his guns. A significant portion of the Cadillac dealer body absolutely does not get it. They tend to be in smaller towns who not have legitimate luxury goods retailers in their area to use as a gauge for understanding the expectations of luxury shoppers. At the other end of the spectrum are those in large urban areas who have a steady clientele based on a long history at the location and who cannot foresee a significant increase in sales that would offset the investment in facility upgrades. They are not invested in image enhancement. They are invested in the cash register and the sale is simply a monetary transaction...nothing more. Creating an "experience environment" for the shopper does not ever cross the mind of these dealers or, if it does, gets dismissed as unnecessary fluff.
 
#51 ·
A significant portion of the Cadillac dealer body absolutely does not get it. They tend to be in smaller towns who not have legitimate luxury goods retailers in their area to use as a gauge for understanding the expectations of luxury shoppers.
This logic contradicts itself. If the small towns don't have the luxury goods retailers for the dealer to see, the rest of the population isn't seeing it either.

The farmer has money and he spends it on his wife buying a Cadillac. Their money spends just as good as anyone else's. I don't understand shutting down a single franchise or taking Cadillac away from a multipoint Chev/BG/Cad dealer in a small town if they're moving cars.

The big city types are not driving to small towns and ogling at what the dealerships look like. They're buying at the big dealer in the big city.

As for the car posted with the landau top and vogue tires... Rick Hendrick is probably already granted Tier 1 status. GM doesn't care what he does. The man moves metal.
 
#32 ·
I guess you GM and Caddy haters must be blind to the "mop n glow/faux ragtop/ gold emblem festooned/ghettoized" bmw, lexus, benz etc. rides that cruise in calif, florida, and almost anywhere else folks with "bad taste" live!
Caddy dealers ain't the only ones adding some zeros on that ADM/add-on sticker!

Better take off those rose colored-gm sucks glasses.................SHEESH!
 
#40 ·
Please provide actual examples (photographs or videos) of BMW, Mercedes-Benz, and Lexus dealerships that molested vehicles in their new car inventories in the manner that Murrow described in post #30.
 
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#38 ·
1. Reason to keep the franchise even if only selling a few new ones, Program Cars. With resale that falls off a cliff, luxury cars are a great market for the year old executive/rental cars. Manufacturers limit these cars to only dealers with that franchise (I believe its 15 months old before available to other GM dealers without the franchise, but don't quote me on that.) It's a much larger market and I think you'll find most dealers want the program Cadys more than the new ones.

2. As to taking the franchise away, GM should have to buy it, dealer had to buy it, GM should be no different, and I think it most states without shuttering the brand or filling bankruptcy again they will have to. If they don't pay an amount the dealer feels is worth selling, the dealer should be able to keep it. No different than going around and finding the vinyl top gaudy late model Cadys and telling the owner they're taking it back and paying 1/2 what its worth. Not going to fly that way and franchise should be no different.

3. Sad part is I'm afraid Ford and GM are falling back into they're old habbits again and are going to start going back down the tubes. They're back to chasing the dealerships (Ford is also into new program, Similar to Blue Oval Certified that ruined dealer relations in the past). They need to be worrying about the product instead. If they'd get the product line right, the dealers would be profitable and buyouts would occur. Caddy needs SUV/Crossovers, that's the market and they're missing it, they came out with some much improved cars in a time when cars don't sell and are worrying about dealers. It's like having your left arm cutoff and spending time to bandage a scratch on your right arm, but this is the way GM (and Ford and Chrysler) have been in the past and I'm afraid as profits return, have fallen back into, I guess its easier to try to find someone else to blame than fix their problems. As I've always said, "Its the product, Stupid", because if they get that right everything else will fall into place.
 
#53 · (Edited)
walked around my caddy dealership sunday. cadillac has a really strong lineup right now. probably the strongest they have ever had. My dealer bought out a family that had owned the dealership for 70 years. he jacked up prices and processing fees, did the fancy building and pissed off a lot of owners and employees. only 2 employees remain and a lot of customers have walked out. When the pricing gets raised by the manufacturer and the owner tries to get another $1500 or so, it just doesnt work.

But anyway, there were some cool caddies on the lot. im not a fan of the 2.0T and there was an ats there with red wheels that was awful but i am a believer that price will move anything,e ven if its luxury goods. I dont consider cadillacs to be luxury goods, they are more of a marketing arm of GM with a few bits that are nicer than most cars. The interiors just done blow me away and the engines are run of the mill. nothing particularly smooth expensive feeling about them. GM has yet to build an engine as smooth as the 4.2L V8 that was in our 20 year old mercedes with 220K on it.
 
#54 · (Edited)
I think my old Cadillac dealer is probably one of the worst offenders.
After 2 Cadillac's and 4 dealers it is no surprise to me why things are not changing service wise on the dealer level..
I think the 3rd gen CTS below is still there and has been sitting there since before Christmas.



 
#59 ·
Lets not forget the reason these "obnoxious" options/trims are added and/or exist:

1) The dealer wants to make more money (which OE's have continually pinched). :bio::

2) It is what (some of) the customer base in said market wants. :1eye:

3) Some sales manager did it as a joke, just before he was about to be fired. :zippy:

------------------

I'm much-much-much less offended by something like this; than the dealer that has a parking lot full of cars that have Scotch-Guard, Paint Protection, Tire-Guard or Pinstripes added on to the window sticker.
 
#70 ·
The problem isn't just the look and feel of the dealerships................ it is also the mindset.

They can have the most sophisticated upscale appearance, but often, what you get from the sales (saleshomies as Neanderthal would call them) staff just reeks of mainstream, bottom basement dealers. If I walk into a "luxury" dealership, and get "what is it going to take to get you to take this home today" from a guy named Vinnie with slicked back hair...................... I want to shoot them in the face with a bazooka. :D

Sometimes, with these old storied nameplates, it seems like they are willing to cut off their nose.................... well, you know the saying. It has to be a complete mindset change. It has to be a complete operating process change. Until then, attitudes will not change, and the respect in the luxury realm will not change. It won't matter how good the product is.
 
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