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    William Maley

    Cadillac Offers Buyouts To Their Smallest Dealers

      Cadillac gives their smallest dealers a way out of project pinnacle

    Cadillac is offering 400 of its smallest dealers a buyout if they don't want to be part of the ambitious and contentious Project Pinnacle.

    Automotive News reports the offers will range from $100,000 to $180,000. The dealers eligible for the buyout sold less than 50 new Cadillac models in 2015. While the 400 dealers make up 43 percent of Cadillac's total number of dealers in the U.S. (around 925), this group only made up 9 percent of total sales last year.

    Cadillac President Johan de Nysschen said the buyouts is to give those an alternative who don't want to forward with the new program.

    “This is going to be a long, arduous and challenging journey and certainly not one for the faint-hearted. Some people may choose to make life a little easier than what lies ahead,” said de Nysschen.

    de Nysschen did say while Cadillac has too many dealers compared to their rivals, the buyout program isn't meant to be seen as a way to get rid of low-volume dealers. 

    Project Pinnacle is a new incentive program that will separate dealers into five tiers based on sales volume. Each tier offers a varying level of customer perk along with different requirements for services and facilities. For example, small stores cannot stock vehicles on site. Instead, they would offer a virtual showroom for customers to explore and order a vehicle. This program has gotten backlash from dealer groups, saying it would violate franchise laws and be unfair to the smaller dealers. 

    Those who have been offered the buyout have until November 21st to either take it or move forward with Project Pinnacle, which is expected to begin January 1st.

    Source: Automotive News (Subscription Required)

     



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    It is a bright idea.  Dealer franchise laws do need to go.  Cadillac can survive if not thrive on about 500 dealers.  The little guys need to disappear.

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    This is a long over do move. 

    If you want a stronger dealer network you must make them stronger. 

    GM has too many dealers period and Cadillac was one that was the most effected.  To make them stronger you must weed out the weak and under performing dealers. In many cases selling Cadillac's was apart time job as they were also selling Chevy and Buicks. 

    The dealers here all sold less than 50 cars a year. In many cases some were selling one to two a month. 

    Cutting the number of dealers will move more sales to the stronger dealers and make it easier for more stand alone dealers going forward and for them to be able to better take care of the customers. 

    Most metro areas only need one dealer and an area like LA could use a couple but there are many places there is just no need for a dealer. Also if customers are remote and not close to a dealer GM can fall back on the other dealers to fix cars if needed. In a pinch they can help arrange a customer repair at a dealer that is local if the customer is ok with this. 

    This is not unlike the Chevy dealers now taking care of the Hummer Customers now. 

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    As a simple engineer far removed from sales, can someone please help me to understand how eliminating dealers will increase sales?  This does not sound like a smart plan.  How does GM suffer if some dealers sell far less than others?

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    This is a great plan as we need to dump the little dealers who do not have the cash to invest in a luxury dealership, does not have the sales to support a luxury style of dealership and does not offer the service one would expect of a luxury dealership.

    In a span of 18 miles, I have the one big dealership that I go to as the service is far superior and two small ones that usually only carry a couple cars, an escalade, etc. These two small dealerships are also part of a mega Cadillac, Buick, GMC, Chevy, Pontiac, Oldsmobile and Saturn mega store concept from the 80-90's that are very dated and clearly not a place that Luxury buyers would go to.

    This is about giving the buyer the buying experience they expect. We have a MB dealership on the north end, one on the eastside, one in the south end. Total of 3 MB dealerships, same with BMW and they service the greater Seattle Tacoma area. 3 Counties and are very successful. Cadillac on the other hand has 12 dealerships servicing this same area. Most look like dated tear downs from the 70-80's and clearly we only need 3-4 at most.

    This is about changing to insure that the buying experience is what one would expect of a luxury dealership. Not trying to be all things to everyone out of one lot. GM does not need that unlike MB or BMW.

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    Hmmm.  I wonder how many Cadillac owners would be happy that their local dealership that is only 5 miles away, will close because the owner can't meet the renovation timeline demanded by GM.....and they then have to drive 100 miles to find the next nearest dealership.

     

    I know I would be pissed, and I could care less that my dealership did not decorate in time.

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    12 hours ago, Wings4Life said:

    As a simple engineer far removed from sales, can someone please help me to understand how eliminating dealers will increase sales?  This does not sound like a smart plan.  How does GM suffer if some dealers sell far less than others?

    It is simple. 

     

    You can have  bunch of dealers that sell a few cars and make for a weak network system of dealers competing for a fewer number of cars. 

    Or you can have a fewer number of dealers selling more cars and making more money being able to better serve customers with better facilities and better staff as they will be more profitable to provide this. 

     

    The 400 dealers here sell much less than 50 cars a year and only account for 9% of sales. The for the most part are not making money and can not provide the service standards Cadillac would like to see their dealers supply. Also the small number of sales would go to the stronger dealers and provide more income to the strong dealers that can serve the customers better. 

    It is more not so much about decoration as it is level of service and the ability to afford it.

    The weak dealers selling 1-2 cars a month are a parasite that hurt the entire network vs. helping it. 

    Ford and GM both have way too many dealers than they need. Years ago you could get away with multiple dealers on every corner but no longer. There are strenght and  profits in larger dealers with volume and less competition between dealers on transaction price. 

    Even at Chevy vs Toyota the Chevy stores per small metro area can number 5-10 and Toyota 1-3. 


    Ford in out area has helped cut the number of dealers with buy outs from Super Stores that own dealers in many cities. Some stores closed and others were enlarged but are part of a network that is working under one owner. This has helped their stores be more profitable. 

    While some may not be happy driving farther it has not hurt the Mercedes, BMW and Audi dealers in out area. The numbers even low have declined here too. There is now only a couple in the Cleveland. Akron, Canton area. They are all large new dealers with top level service vs. the past where they were just tagged in with another brand and only selling 1-2 cars a month as a part time dealer for all intents. 


    GM would like to kill off about 1/3-/1/2 of the Chevy dealers too but the cost would be too great to buy them out. 

    This is not much different than the killing of Pontiac and Olds. GM also had too many divisions for the number of cars they sold. With cost going up it was more and more difficult to make so many models and market them at the lower numbers and show a profit. 

     

    Ideally today one volume brand and one Luxury division is appropriate. In the Case of GM Buick is a non factor since China keeps them alive. The key for them is to use them for the low end Luxury and not let Cadillac worry about that. It is a case where a liability can be turned into an advantage as BMW and Benz try to work for more numbers with lower end cars in North America. 

     

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    I woudl agree with hyper, but our dealership experiences are now very different. Kind of interesting in a way.

    When i was a kid we took our Ford Country Squire wagons to a small town Ford dealer, town was no bigger than 500 people and the sales and service departments shared the same counter.  The owners two hunting dogs usually slept in front of that counter.  You would be hard pressed to find 30 cars on the lot, new or used.

    Took my MINI Cooper S in for a recall on the power steering pump, went to Midwest Auto Group here in Columbus for the work and an Oil change. they are one of the largest European car dealers in the world, and have perhaps several thousand cars on hand. Pulled in next to a black on black 2017 Rolls Royce in the service bay, after pulling past several Ferrari's, Lotuses, Jags, Volvos and the like.

    Very, very different dealership experience!

    Thankfully, both dealerships offered free coffee...

    ...and GM's weak link is their dealer network.  Dealer network is also holding back VW and to a lesser extent FCA and a few others.

    Will be interesting to see how this all plays out.

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    14 hours ago, Wings4Life said:

    As a simple engineer far removed from sales, can someone please help me to understand how eliminating dealers will increase sales?  This does not sound like a smart plan.  How does GM suffer if some dealers sell far less than others?

    I don't think it will increase sales but there is no way a dealer selling less than 1 car a week is making enough on it's own to profit so I'm assuming they're getting money from the mother ship therefore is they decrease their sales slightly by closing doors they will increase their margins and profits with lower total sales. That's just my guess.

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    To anyone questioning this move as non-effective or illogical.. in terms of gaining more sales..The level of customer experience from one portion of a divisional dealership.. Chevy/Cadillac does not translate into a positive one in relation to proper customer relations. As much as I love GM.. my Chevy dealership experience is no way no how as rich as my experience at the Cadillac dealership I deal with. The dealership is a Cadillac-Only store.. and based on customer treatment.. it benefits greatly from not being associated with the Chevy store.

    It pretty much boils down to U will not get Ritz Carlton treatment at the Hilton. That carries over in sales.. PERCEPTION of luxury has to start out where U buy and with the people U deal with along the way of purchase. A person used to selling, trained to sell a Chevy Sonic or Silverado pick-up should have nothing to do with a sales of a $95K CT6. Let me make it even crazier in clarity.. A PERSON SELLING A TAHOE DOES NOT HAVE THE TRAINING TO HANDLE A SALE TO SALE OF AN ESCALADE. And yes the Tahoe can hit $70K.. but the mentality of that buyer simply is different. It is the reason why a Chevy buyer will spend $70K on the LOADED Tahoe but not feel up to spending $70K on the base Escalade.. and vise-versa. Luxury is a state of mind.. and JDN seems to have a handle on it. There is a direct correlation as to why Cadillac ATPs are up, and leading the segment... and it is not only because Cadillac sells Escalades. The CTS, XTS, ATS, and XT5 are moving, some slower than others, without massive incentives being lobed at the customers.

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    Thanks hyper, pretty much what I expected in terms of their thinking.  I am just not sure it will matter much, while absolutely inconveniencing some current and future customers who have to then seek out and drive to further to a dealer.  And the justification to those customers, is that their long time dealer did not live up to standards set.  Hmmm.  I doubt one customer will ever think or say, ‘yeah, get rid of them.  I will drive elsewhere.’  But I digress.

     

    Oh, and I completely disagree about your similarity analogy to GM killing off redundant brands, which has a direct and hard impact on profit, complexity, product planning, etc.  At least from the corporations POV.  The customer just sees another loss.  Or perhaps that’s what you meant.

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    Cadillac currently has 3x as many dealers as Benz, for instance, yet sells about a 1/3 as many cars. There is also a measure of desirability viewed from simple things as foot traffic in and out of dealership. Having less dealerships also means U can have the best personal condensed into one dealer as opposed to spread all over the place

     

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    6 hours ago, A Horse With No Name said:

    I woudl agree with hyper, but our dealership experiences are now very different. Kind of interesting in a way.

    When i was a kid we took our Ford Country Squire wagons to a small town Ford dealer, town was no bigger than 500 people and the sales and service departments shared the same counter.  The owners two hunting dogs usually slept in front of that counter.  You would be hard pressed to find 30 cars on the lot, new or used.

    Took my MINI Cooper S in for a recall on the power steering pump, went to Midwest Auto Group here in Columbus for the work and an Oil change. they are one of the largest European car dealers in the world, and have perhaps several thousand cars on hand. Pulled in next to a black on black 2017 Rolls Royce in the service bay, after pulling past several Ferrari's, Lotuses, Jags, Volvos and the like.

    Very, very different dealership experience!

    Thankfully, both dealerships offered free coffee...

    ...and GM's weak link is their dealer network.  Dealer network is also holding back VW and to a lesser extent FCA and a few others.

    Will be interesting to see how this all plays out.

    See I like the small town service where you can wonder back to the back of the shop and really talk to the guy working on your car. Few dealers will let you wonder anymore.

    Today many customers are all about get me in and get me out while giving me a Danish and few WiFI.

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    4 hours ago, Wings4Life said:

    Thanks hyper, pretty much what I expected in terms of their thinking.  I am just not sure it will matter much, while absolutely inconveniencing some current and future customers who have to then seek out and drive to further to a dealer.  And the justification to those customers, is that their long time dealer did not live up to standards set.  Hmmm.  I doubt one customer will ever think or say, ‘yeah, get rid of them.  I will drive elsewhere.’  But I digress.

     

     

     

    Oh, and I completely disagree about your similarity analogy to GM killing off redundant brands, which has a direct and hard impact on profit, complexity, product planning, etc.  At least from the corporations POV.  The customer just sees another loss.  Or perhaps that’s what you meant.

     

    The fact is times have changed, cost are higher than ever and the way of doing business has to change or you will be out of business. We have yet to see the last automaker fail and we will see more. Development cost are so high we are seeing things like Ford and Chevy working together on transmissions not because they want to but because they have to.

    Companies just can't offer 14 variations of the same kind of car any longer as it is too expensive unless it is sold globally. Volume of each model needs to be high today as it is difficult to survive moving forward selling only a small volume at a low cost.

    Generally customers and even people here on the web sight do not understand the cost of doing business today in making autos. They may see a loss of a division but a Corporations see it as a way to make more money and cut cost.

    Profits have to be up to pay the bills and to develop new and competitive product. If not you die.

    I am still a die hard Pontiac fan but I fully understand why from a business standpoint why they were killed. knowing how the new global market works Pontiac fell too far behind not going global and holding volumes much too small.

    The inability of GM to understand how to Run Pontiac caught up to them. In the end they got Pontiac to a point in 2003 with no real RWD performance option for the GM performance division. Yet we had the Aztek? 

    Globally Pontiac was a mystery to most and really had no global market outside the Holden based cars that came way too late to help.

     

    As to back to the topic. Driving farther is not going to be an issues as most customers will have to drive as far to find a Audi or Benz dealer as it is.

    My buddy had to drive over an hour to a Porsche dealer and that was not an issue to him as it was a good dealer {Penske} and he was willing to do it because he wanted a Porsche.

    We had a local one but the market was so small it was removed and placed in Cleveland with the existing dealer as even Porsche cut the number of dealers. This is not just a GM thing. Our Benz dealers also merged or sold out too.

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    17 hours ago, Wings4Life said:

    Hmmm.  I wonder how many Cadillac owners would be happy that their local dealership that is only 5 miles away, will close because the owner can't meet the renovation timeline demanded by GM.....and they then have to drive 100 miles to find the next nearest dealership.

     

    I know I would be pissed, and I could care less that my dealership did not decorate in time.

    Cadillac is not FORD, Chevy or DODGE, they are a Luxury brand that should have world class service and dealerships. Simple, you cannot sell enough to justify the luxury line, then you do not have it.

    Many Ford Dealerships have Lincoln and they do Lincoln a dishonor by having them in the same show room.

    Luxury is Luxury and deserves to have it's own place.

    Fact of life is that while many rich people will go to Walmart to save money, They still do not want their luxury products on the same shelf there.

    Same with Cars, People who buy fords and Chevy's for the most part stay with those dealerships and rarely move up to the luxury line if it is shown there. Luxury buyers expect a much higher level of service and dealership.

    Ford would be wise to make this change if they want Lincoln to Compete with Cadillac, MB, BMW etc. Otherwise accept that Lincoln is a Buick competitor.

    Just how I see it and I think many others do also.

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    5 hours ago, Wings4Life said:

    Thanks hyper, pretty much what I expected in terms of their thinking.  I am just not sure it will matter much, while absolutely inconveniencing some current and future customers who have to then seek out and drive to further to a dealer.  And the justification to those customers, is that their long time dealer did not live up to standards set.  Hmmm.  I doubt one customer will ever think or say, ‘yeah, get rid of them.  I will drive elsewhere.’  But I digress.

    Wings, I am one of those customers that with 3 cadillac dealerships in my general area, 15 mile circle, the two closest to me are terrible and deserve to be closed down. I now drive to the farthest dealer who has outstanding service, attention to detail, etc. In fact I take my Trailblazer SS there to get the synthetic oil changed as the service is that much better and the price of the oil change between Cadillac and Chevy is nothing since it is synthetic. 

    I am a customer who does drive a little farther for better service yet same price.

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    40 minutes ago, hyperv6 said:

    See I like the small town service where you can wonder back to the back of the shop and really talk to the guy working on your car. Few dealers will let you wonder anymore.

    Today many customers are all about get me in and get me out while giving me a Danish and few WiFI.

    Agree completely.  Part of my Mustang fetish comes from this dealer in 1971...We got a new Country Squire wagon that was blue....there was a blue Mach one in the service bay next to our wagon when we picked up our nice new wagon.

    7 minutes ago, dfelt said:

    Wings, I am one of those customers that with 3 cadillac dealerships in my general area, 15 mile circle, the two closest to me are terrible and deserve to be closed down. I now drive to the farthest dealer who has outstanding service, attention to detail, etc. In fact I take my Trailblazer SS there to get the synthetic oil changed as the service is that much better and the price of the oil change between Cadillac and Chevy is nothing since it is synthetic. 

    I am a customer who does drive a little farther for better service yet same price.

    I am the same way.  I have a regular independent mechanic who works on my cars and he is a bit of a hike but worth it.  And for dealership service, i sue a dealership on the far side of town, as their service is excellent.

    The dealer nearest me is god awful.  My former boss Eric had to show them how to use their alignment machine to get a proper alignment on his teenage daughters car. They were literally clueless on how to operate their own equipment.

    15 minutes ago, dfelt said:

    Cadillac is not FORD, Chevy or DODGE, they are a Luxury brand that should have world class service and dealerships. Simple, you cannot sell enough to justify the luxury line, then you do not have it.

    Many Ford Dealerships have Lincoln and they do Lincoln a dishonor by having them in the same show room.

    Luxury is Luxury and deserves to have it's own place.

    Fact of life is that while many rich people will go to Walmart to save money, They still do not want their luxury products on the same shelf there.

    Same with Cars, People who buy fords and Chevy's for the most part stay with those dealerships and rarely move up to the luxury line if it is shown there. Luxury buyers expect a much higher level of service and dealership.

    Ford would be wise to make this change if they want Lincoln to Compete with Cadillac, MB, BMW etc. Otherwise accept that Lincoln is a Buick competitor.

    Just how I see it and I think many others do also.

    One reason that I am thinking of buying a used Luxury car with my next automotive purchase.  The bar really is set much higher.

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    2 hours ago, dfelt said:

    Wings, I am one of those customers that with 3 cadillac dealerships in my general area, 15 mile circle, the two closest to me are terrible and deserve to be closed down. I now drive to the farthest dealer who has outstanding service, attention to detail, etc. In fact I take my Trailblazer SS there to get the synthetic oil changed as the service is that much better and the price of the oil change between Cadillac and Chevy is nothing since it is synthetic. 

    I am a customer who does drive a little farther for better service yet same price.

    You are lucky to have the dealers close. I was referring to those in rural areas perhaps, that don't.  

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    Makes sense to do this, if a dealer is selling 3-4 cars per month, that isn't a viable dealership.    Better to buy those out and make the remaining dealerships nicer.

    As far as travel goes, once you buy the car you don't really need to take it to the dealer for service.  Aside from the independent shops, and Midas and Mienke and Monro type places there are a lot of service options.  Plus you could take your Cadillac to any GM dealer to fix since the 2.0T, 3.6 V6 and 6.2 V8 are GM corporate engines, nothing in there that a Chevy mechanic couldn't fix.

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    Cadillac will come to you to get your auto, take it, service it, wash it, vacuum it and return it in clean condition to your home or work.

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    town where my mom lives, 50k pop in a rural midwest area......huge GM dealer that's been a regional pillar for decades.  They have all the GM brands.  I bet they don't sell a ton of Caddies, and it is one of the nook in a corner stores.  Closest other GM dealers at least an hour away i think.

    No Lexus or Infiniti or Audi for an hour away.  Conservative buyers there like their GM's and even if they don't buy in big number the Cadillacs, they are still aspirational there.  Lots of SRX's sold.  Maybe they sell (purely a guess) 50-100 caddies a year.  But their same buyers buy lots of pickups and have money and when they want a car they may want a cadillac too.

    Cadillac should be analytical on which of those smaller dealers they try to cut out.  Part of GM's success over history is because they are in these smaller town midwest pockets no other dealers are.

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    7 minutes ago, regfootball said:

    town where my mom lives, 50k pop in a rural midwest area......huge GM dealer that's been a regional pillar for decades.  They have all the GM brands.  I bet they don't sell a ton of Caddies, and it is one of the nook in a corner stores.  Closest other GM dealers at least an hour away i think.

    No Lexus or Infiniti or Audi for an hour away.  Conservative buyers there like their GM's and even if they don't buy in big number the Cadillacs, they are still aspirational there.  Lots of SRX's sold.  Maybe they sell (purely a guess) 50-100 caddies a year.  But their same buyers buy lots of pickups and have money and when they want a car they may want a cadillac too.

    Cadillac should be analytical on which of those smaller dealers they try to cut out.  Part of GM's success over history is because they are in these smaller town midwest pockets no other dealers are.

    This makes sense and I would have to think they would have some common sense about this type of dealer. The focus needs to be on areas like where I live where you have two small towns with a single store approach like that and the service sucks, sales have to be insignificant and you can drive an extra 15 min to a much bigger dealer with much better service. No need for a dealer between Seattle and Tacoma or Seattle and Everett here that cannot offer a true luxury experience.

    They need to focus on these small dealers that just do not make sense any longer.

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    On 9/27/2016 at 4:21 AM, hyperv6 said:

    It is simple. 

     

    You can have  bunch of dealers that sell a few cars and make for a weak network system of dealers competing for a fewer number of cars. 

    Or you can have a fewer number of dealers selling more cars and making more money being able to better serve customers with better facilities and better staff as they will be more profitable to provide this. 

     

    The 400 dealers here sell much less than 50 cars a year and only account for 9% of sales. The for the most part are not making money and can not provide the service standards Cadillac would like to see their dealers supply. Also the small number of sales would go to the stronger dealers and provide more income to the strong dealers that can serve the customers better. 

    It is more not so much about decoration as it is level of service and the ability to afford it.

    The weak dealers selling 1-2 cars a month are a parasite that hurt the entire network vs. helping it. 

    Ford and GM both have way too many dealers than they need. Years ago you could get away with multiple dealers on every corner but no longer. There are strenght and  profits in larger dealers with volume and less competition between dealers on transaction price. 

    Even at Chevy vs Toyota the Chevy stores per small metro area can number 5-10 and Toyota 1-3. 


    Ford in out area has helped cut the number of dealers with buy outs from Super Stores that own dealers in many cities. Some stores closed and others were enlarged but are part of a network that is working under one owner. This has helped their stores be more profitable. 

    While some may not be happy driving farther it has not hurt the Mercedes, BMW and Audi dealers in out area. The numbers even low have declined here too. There is now only a couple in the Cleveland. Akron, Canton area. They are all large new dealers with top level service vs. the past where they were just tagged in with another brand and only selling 1-2 cars a month as a part time dealer for all intents. 


    GM would like to kill off about 1/3-/1/2 of the Chevy dealers too but the cost would be too great to buy them out. 

    This is not much different than the killing of Pontiac and Olds. GM also had too many divisions for the number of cars they sold. With cost going up it was more and more difficult to make so many models and market them at the lower numbers and show a profit. 

     

    Ideally today one volume brand and one Luxury division is appropriate. In the Case of GM Buick is a non factor since China keeps them alive. The key for them is to use them for the low end Luxury and not let Cadillac worry about that. It is a case where a liability can be turned into an advantage as BMW and Benz try to work for more numbers with lower end cars in North America. 

     

    This because its sales 101. This is a long overdue move by GM. If the small dealers can't keep up with the changes then it is better to just buy them off and put those resources into the larger dealerships. 

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    There's a reason Mercedes doesn't have a dealership in the middle of Cornfield, Ohio and they make you go into Columbus to get your S-Class serviced.

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    Note too where there is a German dealer there will be a Cadillac close by. No one will have to drive farther due to less dealers. 

    If your customers only buy from you for convenience they are not spending enough. 

     

    Here are the types of customers that will be affected. 

     

     

     

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      LYRIQ Show Car Leads Cadillac Into Electric Future
      The brand’s first all-electric vehicle introduces a new era in luxury, technology and zero-tailpipe-emissions performance Cadillac’s introduction of its electric portfolio begins today with the debut of the LYRIQ show car — a dynamic, modern and fully electric luxury crossover. 
      The propulsion system and supporting technologies position Cadillac to be a leader in electrification, connectivity and automated driving, all delivered with thrilling performance and a new threshold in technology integration.
      “Led by LYRIQ, Cadillac will redefine American luxury over the next decade with a new portfolio of transformative EVs,” said Steve Carlisle, executive vice president and president, GM North America. “We will deliver experiences that engage the senses, anticipate desires and enable our customers to go on extraordinary journeys.”
      The LYRIQ is based on GM’s next-generation, modular electric vehicle platform and driven by the Ultium propulsion system, allowing Cadillac to deliver customers a variety of range and performance options. With range being one of the biggest factors when it comes to selecting an EV, we’re designing LYRIQ to offer beyond 300 miles of range on a full charge, based on internal testing1. Performance and technology highlights include:
      Charging options that fit a variety of preferences for home, the workplace and on the road — including DC fast charging rates over 150 kilowatts and Level 2 charging rates up to 19 kW2. Rear-wheel drive and performance all-wheel drive configurations. The latest version of Super Cruise3, the industry’s first truly hands-free driver assistance feature, available on more than 200,000 miles of compatible highways and recently enhanced to include automated lane change. New technologies such as dual-plane augmented reality-enhanced head-up display and remote self-parking. The brand’s most seamless and adaptive technology interaction with the driver and passengers, including the latest Cadillac user experience, which is showcased in a 33-inch-diagonal advanced LED screen the spans the entire viewing area of the driver. “LYRIQ was conceived to make every journey exhilarating and leverages more than a century of innovation to drive the brand into a new era, while rewarding passengers with a more personal, connected and immersive experience,” said Jamie Brewer, Cadillac LYRIQ chief engineer. “To do this we developed an architecture specifically for EVs.  It is not only an exceptional EV, but first and foremost a Cadillac.”
      LIBERATING PERFORMANCE
      Some luxury EVs today feature adapted traditional internal combustion engine architecture, that is not the case with LYRIQ. Cadillac’s all-new, modular EV platform on which the LYRIQ is based is the foundation for its liberating performance. With a dedicated EV architecture, its design eliminates significant physical constraints associated with adapting electric propulsion within a conventional vehicle architecture, for an optimized design that supports greater driving range, an engaging driving experience and a new interpretation of passenger space.
      Within the LYRIQ, the Ultium battery system is a structural element of the architecture, integrated in ways that contribute to ride and handling, as well as safety. In fact, the lower center of gravity and near 50/50 weight distribution enabled by the placement of the battery pack results in a vehicle that’s sporty, responsive and allows for spirited driving.
      Additionally, the LYRIQ is driven primarily by the rear wheels, with a performance all-wheel drive option available. The placement of the drive motor at the rear of the vehicle contributes an even greater feeling of balance and agility — attributes that affirm Cadillac’s longstanding commitment to satisfying performance. It also enables the system to channel more torque to the pavement without wheelspin for exhilarating acceleration and greater cornering capability. Vehicles equipped with performance all-wheel drive go a step further, with a second drive unit placed at the front of the vehicle, which allows for a significant amount of tuning flexibility, enhancing vehicle dynamics and performance for drivers.
      ALL-NEW ULTIUM BATTERY SYSTEM
      The Cadillac LYRIQ is powered by GM’s new Ultium battery system, which offers approximately 100 kilowatt-hours of energy to deliver stirring performance.
      Ultium’s state-of-the-art NCMA (nickel-cobalt-manganese-aluminum) chemistry uses aluminum in the cathode to help reduce the need for rare-earth materials such as cobalt. In fact, GM engineers reduced the cobalt content by more than 70 percent, compared to current GM batteries.
      The advanced battery chemistry is packed in large, flat pouch cells that enable smart module construction to reduce complexity and simplify cooling needs. Additionally, the battery electronics are incorporated directly into the modules, eliminating nearly 90 percent of the battery pack wiring, compared to GM’s current electric vehicles. 
      When it comes to charging, LYRIQ offers quick and convenient charging options whether at home or on the go. With DC fast charging, the LYRIQ can charge at rates over 150 kW. 
      ARTFULLY INTEGRATED TECHNOLOGY
      Envisioned to make interaction with its technologies more intuitive and rewarding, the LYRIQ’s partnership with the driver and passengers is simultaneously energizing and artful.
      Upon approach, the LYRIQ recognizes the driver and initiates a “greeting” with a choreographed lighting sequence, while also preparing the cabin for the journey, including seat, mirror and climate system adjustments. Once inside, the LYRIQ offers Cadillac’s highest level of driver information, infotainment and connectivity integration, for a more seamless and rewarding experience.
      A 33-inch-diagonal advanced LED display artfully integrates a single, large screen that spans the viewing area for the driver and incorporates driver information details, infotainment controls and camera views. This new display has the highest pixel density available in the automotive industry today and can display over one billion colors, 64 times more than any other vehicle in the automotive industry, providing a stunning in-vehicle experience unlike anything seen before from Cadillac.
      Additional technology and interactive highlights include:
      Battery and charging monitoring conveyed by easy, at-a-glance graphics. The system identifies the vehicle’s energy needs at home and on the go, according to owner preferences, while also monitoring and forecasting energy consumption and providing charging suggestions. New dual-plane augmented reality-enhanced head-up display employs two planes: a near plane indicating speed, direction and more, and a far plane displaying transparent navigation signals and other important alerts. The latest version of Super Cruise, the hands-free driver assistance feature, including automated lane change.3 Supervised remote parking that uses ultrasonic sensors to help the LYRIQ park itself in parallel or perpendicular parking spaces — whether the driver is inside or outside of the vehicle.4 SENSE OF SOUND
      LYRIQ’s technology also addresses sound in two important ways: Blocking unwanted sounds and making the most of the sounds passengers want to hear.
      For the first time, Cadillac will introduce a new road noise cancellation technology, which takes active noise cancellation to the next level by introducing more microphones and accelerometers, which improve noise cancellation abilities. With this new system, Cadillac’s performance and audio engineers can target the frequency range of tire cavity noise, reducing the noise level in the vehicle and allowing for a quieter in-cabin experience.
      The Cadillac LYRIQ builds on the brand’s exclusive partnership with AKG. “With LYRIQ we wanted to deliver a sound experience that would transport the driver from a vehicle into a recording studio,” said Hussein Khalil, Cadillac lead audio design release engineer. “With the AKG sound system, we are able to deliver this experience along with the quality and reliability luxury customers expect.”
      At launch, LYRIQ will offer a 19-speaker AKG Studio audio system that delivers exceptionally crisp and precise sound reproduction, enabling drivers and passengers to enjoy their favorite music.
      NEW FACE OF CADILLAC
      Cadillac’s first electric SUV makes a bold design statement that introduces a new face, proportion and presence for the brand’s new generation of EVs. It’s a forward-looking vision unconstrained by the needs of a traditional internal combustion engine and driveline.
      “The LYRIQ represents the next iteration of the iconic brand’s styling, enabled by electrification, as only Cadillac can express,” said Andrew Smith, executive director, Global Cadillac Design. “Inside and out, LYRIQ is a thoughtful integration of design and technology and is intended to make every drive an occasion.”
      Defined by taut lines and clean surfaces, LYRIQ is assertive and modern, characterized with a low, fast roofline and wide stance that emphasize agility and convey confidence. Additional details such as a flow-through roof spoiler express the careful attention paid to aerodynamics to optimize efficiency on the highway.
      A distinctive “black crystal” grille in the front is one of the LYRIQ’s most unique and expressive design elements. It is also a dynamic feature, as it is part of a dramatic lighting choreography that — along with bold vertical, slim LED signature lighting — greets the owner upon approach. At the rear, a split taillamp design incorporates slim LEDs that are also integrated into the lighting choreography.
      Inside, the LYRIQ’s new electric vehicle architecture opens up possibilities in vehicle spaciousness and design; and Cadillac designers used this as an opportunity to rethink how to use the space and where to locate various interior elements.
      The result is a more airy, minimalistic design that does more to involve the driver and passengers in the driving experience while offering exceptional functionality when it comes to storage solutions. It is also brimming with subtle yet obsessive details such as backlit speaker grilles, curved screens with hidden storage and, like the exterior, orchestrated lighting features.

      View full article
    • By William Maley
      It is no secret that General Motors has big ambitions in the electric car space, we talked about back in March. But our chance to see to see the first fruits of this, the Cadillac Lyriq had been delayed due to COVID-19 pandemic. But tonight, Cadillac finally revealed the Lyriq in show car form.
      "Show Car" is important in this context as Cadillac is finalizing various parts of the Lyriq's design - various reports say the design is 80 to 85 percent production ready. This may explain why Cadillac isn't launching the model until late-2022. The design is quite out there with a large pattern grille, vertical LED headlamps, fastback roofline, and rear lights that wrap around the pillars. Moving inside, the center piece is a curved, 33-inch display that features driver information and infotainment. There is also a dual-pane head-up display that can display different information - the nearest one can show speed and direction, while the further one can issue alerts and navigation.
      Cadillac hasn't released any power figures on the Lyriq, only saying that it will offer two drivetrain versions; rear-wheel drive with a single electric motor and all-wheel drive with two electric motors. A new modular platform for electric vehicles promises a low-center of gravity and a near 50/50 weight distribution for the all-wheel drive version. Range is targeted at over 300 miles. Cadillac says the production model will offer DC fast charging.
      Source: Cadillac
      Press Release is on Page 2


      LYRIQ Show Car Leads Cadillac Into Electric Future
      The brand’s first all-electric vehicle introduces a new era in luxury, technology and zero-tailpipe-emissions performance Cadillac’s introduction of its electric portfolio begins today with the debut of the LYRIQ show car — a dynamic, modern and fully electric luxury crossover. 
      The propulsion system and supporting technologies position Cadillac to be a leader in electrification, connectivity and automated driving, all delivered with thrilling performance and a new threshold in technology integration.
      “Led by LYRIQ, Cadillac will redefine American luxury over the next decade with a new portfolio of transformative EVs,” said Steve Carlisle, executive vice president and president, GM North America. “We will deliver experiences that engage the senses, anticipate desires and enable our customers to go on extraordinary journeys.”
      The LYRIQ is based on GM’s next-generation, modular electric vehicle platform and driven by the Ultium propulsion system, allowing Cadillac to deliver customers a variety of range and performance options. With range being one of the biggest factors when it comes to selecting an EV, we’re designing LYRIQ to offer beyond 300 miles of range on a full charge, based on internal testing1. Performance and technology highlights include:
      Charging options that fit a variety of preferences for home, the workplace and on the road — including DC fast charging rates over 150 kilowatts and Level 2 charging rates up to 19 kW2. Rear-wheel drive and performance all-wheel drive configurations. The latest version of Super Cruise3, the industry’s first truly hands-free driver assistance feature, available on more than 200,000 miles of compatible highways and recently enhanced to include automated lane change. New technologies such as dual-plane augmented reality-enhanced head-up display and remote self-parking. The brand’s most seamless and adaptive technology interaction with the driver and passengers, including the latest Cadillac user experience, which is showcased in a 33-inch-diagonal advanced LED screen the spans the entire viewing area of the driver. “LYRIQ was conceived to make every journey exhilarating and leverages more than a century of innovation to drive the brand into a new era, while rewarding passengers with a more personal, connected and immersive experience,” said Jamie Brewer, Cadillac LYRIQ chief engineer. “To do this we developed an architecture specifically for EVs.  It is not only an exceptional EV, but first and foremost a Cadillac.”
      LIBERATING PERFORMANCE
      Some luxury EVs today feature adapted traditional internal combustion engine architecture, that is not the case with LYRIQ. Cadillac’s all-new, modular EV platform on which the LYRIQ is based is the foundation for its liberating performance. With a dedicated EV architecture, its design eliminates significant physical constraints associated with adapting electric propulsion within a conventional vehicle architecture, for an optimized design that supports greater driving range, an engaging driving experience and a new interpretation of passenger space.
      Within the LYRIQ, the Ultium battery system is a structural element of the architecture, integrated in ways that contribute to ride and handling, as well as safety. In fact, the lower center of gravity and near 50/50 weight distribution enabled by the placement of the battery pack results in a vehicle that’s sporty, responsive and allows for spirited driving.
      Additionally, the LYRIQ is driven primarily by the rear wheels, with a performance all-wheel drive option available. The placement of the drive motor at the rear of the vehicle contributes an even greater feeling of balance and agility — attributes that affirm Cadillac’s longstanding commitment to satisfying performance. It also enables the system to channel more torque to the pavement without wheelspin for exhilarating acceleration and greater cornering capability. Vehicles equipped with performance all-wheel drive go a step further, with a second drive unit placed at the front of the vehicle, which allows for a significant amount of tuning flexibility, enhancing vehicle dynamics and performance for drivers.
      ALL-NEW ULTIUM BATTERY SYSTEM
      The Cadillac LYRIQ is powered by GM’s new Ultium battery system, which offers approximately 100 kilowatt-hours of energy to deliver stirring performance.
      Ultium’s state-of-the-art NCMA (nickel-cobalt-manganese-aluminum) chemistry uses aluminum in the cathode to help reduce the need for rare-earth materials such as cobalt. In fact, GM engineers reduced the cobalt content by more than 70 percent, compared to current GM batteries.
      The advanced battery chemistry is packed in large, flat pouch cells that enable smart module construction to reduce complexity and simplify cooling needs. Additionally, the battery electronics are incorporated directly into the modules, eliminating nearly 90 percent of the battery pack wiring, compared to GM’s current electric vehicles. 
      When it comes to charging, LYRIQ offers quick and convenient charging options whether at home or on the go. With DC fast charging, the LYRIQ can charge at rates over 150 kW. 
      ARTFULLY INTEGRATED TECHNOLOGY
      Envisioned to make interaction with its technologies more intuitive and rewarding, the LYRIQ’s partnership with the driver and passengers is simultaneously energizing and artful.
      Upon approach, the LYRIQ recognizes the driver and initiates a “greeting” with a choreographed lighting sequence, while also preparing the cabin for the journey, including seat, mirror and climate system adjustments. Once inside, the LYRIQ offers Cadillac’s highest level of driver information, infotainment and connectivity integration, for a more seamless and rewarding experience.
      A 33-inch-diagonal advanced LED display artfully integrates a single, large screen that spans the viewing area for the driver and incorporates driver information details, infotainment controls and camera views. This new display has the highest pixel density available in the automotive industry today and can display over one billion colors, 64 times more than any other vehicle in the automotive industry, providing a stunning in-vehicle experience unlike anything seen before from Cadillac.
      Additional technology and interactive highlights include:
      Battery and charging monitoring conveyed by easy, at-a-glance graphics. The system identifies the vehicle’s energy needs at home and on the go, according to owner preferences, while also monitoring and forecasting energy consumption and providing charging suggestions. New dual-plane augmented reality-enhanced head-up display employs two planes: a near plane indicating speed, direction and more, and a far plane displaying transparent navigation signals and other important alerts. The latest version of Super Cruise, the hands-free driver assistance feature, including automated lane change.3 Supervised remote parking that uses ultrasonic sensors to help the LYRIQ park itself in parallel or perpendicular parking spaces — whether the driver is inside or outside of the vehicle.4 SENSE OF SOUND
      LYRIQ’s technology also addresses sound in two important ways: Blocking unwanted sounds and making the most of the sounds passengers want to hear.
      For the first time, Cadillac will introduce a new road noise cancellation technology, which takes active noise cancellation to the next level by introducing more microphones and accelerometers, which improve noise cancellation abilities. With this new system, Cadillac’s performance and audio engineers can target the frequency range of tire cavity noise, reducing the noise level in the vehicle and allowing for a quieter in-cabin experience.
      The Cadillac LYRIQ builds on the brand’s exclusive partnership with AKG. “With LYRIQ we wanted to deliver a sound experience that would transport the driver from a vehicle into a recording studio,” said Hussein Khalil, Cadillac lead audio design release engineer. “With the AKG sound system, we are able to deliver this experience along with the quality and reliability luxury customers expect.”
      At launch, LYRIQ will offer a 19-speaker AKG Studio audio system that delivers exceptionally crisp and precise sound reproduction, enabling drivers and passengers to enjoy their favorite music.
      NEW FACE OF CADILLAC
      Cadillac’s first electric SUV makes a bold design statement that introduces a new face, proportion and presence for the brand’s new generation of EVs. It’s a forward-looking vision unconstrained by the needs of a traditional internal combustion engine and driveline.
      “The LYRIQ represents the next iteration of the iconic brand’s styling, enabled by electrification, as only Cadillac can express,” said Andrew Smith, executive director, Global Cadillac Design. “Inside and out, LYRIQ is a thoughtful integration of design and technology and is intended to make every drive an occasion.”
      Defined by taut lines and clean surfaces, LYRIQ is assertive and modern, characterized with a low, fast roofline and wide stance that emphasize agility and convey confidence. Additional details such as a flow-through roof spoiler express the careful attention paid to aerodynamics to optimize efficiency on the highway.
      A distinctive “black crystal” grille in the front is one of the LYRIQ’s most unique and expressive design elements. It is also a dynamic feature, as it is part of a dramatic lighting choreography that — along with bold vertical, slim LED signature lighting — greets the owner upon approach. At the rear, a split taillamp design incorporates slim LEDs that are also integrated into the lighting choreography.
      Inside, the LYRIQ’s new electric vehicle architecture opens up possibilities in vehicle spaciousness and design; and Cadillac designers used this as an opportunity to rethink how to use the space and where to locate various interior elements.
      The result is a more airy, minimalistic design that does more to involve the driver and passengers in the driving experience while offering exceptional functionality when it comes to storage solutions. It is also brimming with subtle yet obsessive details such as backlit speaker grilles, curved screens with hidden storage and, like the exterior, orchestrated lighting features.
    • By David
      Cadillac division sent out this email saying that the Cadillac Lyriq reveal will be August 6th 2020 @ 7PM. 
      Now the interesting part is what time zone? EST, MST, PST,.......... 🤔

    • By William Maley
      Automakers for the most part were hurting in sales during the second quarter. The COVID-19 pandemic and the economy coming to a screeching halt for a brief time caused new car sales to drop by a third according to Automotive News. But there is a slim silver lining to this, full-size pickups have moved into being the best-selling segment of vehicles.
      According to data from Automotive News, one out of four vehicles sold between April and June was a pickup truck. This helped put them ahead of compact crossovers, which have held the top spot for some time. The reason is that trucks didn't take as big of a hit due to 0 percent financing offers from automakers to help bring in buyers. A large number of dealers said they sold the majority of trucks sitting on their lots.
      Mark LaNeve, Ford's vice president of U.S. marketing, sales and service provides another reason why trucks didn't fall off a cliff. Speaking to AN, he said that people need trucks for work and "affluent consumers who often buy such vehicles have been less affected by the pandemic."
      Trucks still took quite the hit in the quarter,
      Chevrolet Silverado: Down 14% Ford F-Series: Down 23% GMC Sierra: Down 4% Ram: Down 35% Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      Automakers for the most part were hurting in sales during the second quarter. The COVID-19 pandemic and the economy coming to a screeching halt for a brief time caused new car sales to drop by a third according to Automotive News. But there is a slim silver lining to this, full-size pickups have moved into being the best-selling segment of vehicles.
      According to data from Automotive News, one out of four vehicles sold between April and June was a pickup truck. This helped put them ahead of compact crossovers, which have held the top spot for some time. The reason is that trucks didn't take as big of a hit due to 0 percent financing offers from automakers to help bring in buyers. A large number of dealers said they sold the majority of trucks sitting on their lots.
      Mark LaNeve, Ford's vice president of U.S. marketing, sales and service provides another reason why trucks didn't fall off a cliff. Speaking to AN, he said that people need trucks for work and "affluent consumers who often buy such vehicles have been less affected by the pandemic."
      Trucks still took quite the hit in the quarter,
      Chevrolet Silverado: Down 14% Ford F-Series: Down 23% GMC Sierra: Down 4% Ram: Down 35% Source: Automotive News (Subscription Required)
  • Posts

    • You applauded it too. 'Build more CUV/SUVs!' you demanded. The 'applause' is supplying the market with the SUVs they demand. Cadillac had 7 models in '16, and they have 6 in '20. Except that would be stupid. But there you go again applauding Cadillac building more SUVs. You must luvluvluv the Lyriq; gonna turn the segment on it's ear if that variant/trim is offered.
    • Can't get rid of Cadillac in the USA.  If anything you would make Buick China only because most the small Buick SUVs overlap Chevy/GMC products or could be pushed to GMC like an Encore or Envision.  And Cadillac could do an XT3 SUV as an entry point in what was Buick pricing.  
    • They have the most diverse portfolio still, and are #1 selling luxury car brand in 2020 so far.  They are cutting models that don't sell, and they have like 50 models, cutting 7 is not big deal.   Keep in mind they are also adding EQ C, EQ S, EQ A, EQ B, which is 4 all new models.  Rumor is they are adding CLE coupe/convertible, so they are adding 6 models probably over the next 2-3 years. Cadillac has cut 6 of the 7 models they had in 2016.  No one is flipping out about them killing 6/7ths of their lineup in 4 years, in fact people applaud it.
    • Good information, originally the EQS was supposed to be a 2022 model, they had the concept and drivable prototype last year.  But I'd imagine the pandemic has slowed and and EV demand still isn't that high.  Although they need the EQS because of what Tesla is going.  And the EQE sedan and the SUVs too. My guess is the S-class or E-class will clobber the EV's in sales for about 5 years, maybe closer to 2030 all these things just become electric and that is just the normal.
    • Neither, I will mostly keep it stock. I may swap out the grille, headlights, and tail lights for something more modern. I’ll keep it subtle and tasteful though. but, because it’s been sitting so long, I have to change a lot of the fluids out. I’ll be doing an oil change, coolant change, brake fluid change, diff oil change, and possibly tires if they’re dry rotted. So that will need to be addressed first... 
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