• Sign in to follow this  
    Followers 0

    Cadillac Works On Dealer Incentives


    • Cadillac Considers Changing Dealer Incentives

    Cadillac's boss Johan de Nysschen has a plan to rehabilitate Cadillac's image. Part of this plan deals with the dealers with tightening inventory and end the sell-at-any-cost mentality.

     

    But as Automotive News reports, there is a slight problem as Cadillac's dealer incentive programs promote the opposite. One incentive attaches $700 in dealer bonus money to every Cadillac vehicle they order from the factory, while another has cash payouts for growing sales.

     

    “The business model has been structured more for the bigger brands inside General Motors, rather than the small Cadillac brand,” said de Nysschen.

     

    “The luxury business is different.”

     

    de Nysschen instead wants to give incentives to dealers “in terms of the overall support to the brand.” This could mean meeting certain marks in customer satisfaction scores or new requirements to have an adequate recruiting process.

     

    At the moment, Cadillac is in talks with their national dealer council “to develop the next generation of what these programs should look like for Cadillac.”

     

    Source: Automotive News (Subscription Required)

    0


      Report Article
    Sign in to follow this  
    Followers 0


    User Feedback


    I am very happy to hear this, I know my Cadillac dealer has become far more customer focused with service, but I will say that GM does need to change the way they do things with Cadillac and focus on upgrading the dealerships to be new and fresh, focus on service and quality. I think there are many ways they can improve and this sounds like a good start.

    0

    Share this comment


    Link to comment
    Share on other sites

    This is a good move in the right direction.  But everything will take time to develop.  Hopefully, things will fully materialize by the end of 2016.

    0

    Share this comment


    Link to comment
    Share on other sites

    If they had worked on the dealer ship experience prior to introducing the new product, there might have been greater acceptance of Cadillac being a worthy player in this upper echelon. But what's done in done, the CT6 will have a difficult time selling its prestigious approach to American Luxury unless Cadillac looks and feels posh in every theater the brand interacts with its stakeholders and rivals.

     

    I hope they kick ass!

    Edited by Suaviloquent
    0

    Share this comment


    Link to comment
    Share on other sites

    Getting the dealers on board will be the hardest part. They're the ones who will be asked to shell out to upgrade showrooms for a product and sales vision they may not support.

    0

    Share this comment


    Link to comment
    Share on other sites

    Is there any way  Johan de Nysschen can make present Cadillac dealers lose their license to sell Cadillacs if they refuse to co-operate with the vision that Johan has for Cadillac?

     

    I know dealerships are fully owned and operated privately and independently from GM...but GM still licenses their right to operate a Cadillac franchise, non?

    And if so...arent franchisors bound by what corporate office says?

     

    Im just confused about the whole "vision  they might not support" thing...

    Its not what they say goes...its what the Cadillac Boss wants that goes...

    Or is it because car dealerships have their own set of laws and are not run  like  a "McDonald's franchise"?

    0

    Share this comment


    Link to comment
    Share on other sites

    Is there any way  Johan de Nysschen can make present Cadillac dealers lose their license to sell Cadillacs if they refuse to co-operate with the vision that Johan has for Cadillac?

     

    I know dealerships are fully owned and operated privately and independently from GM...but GM still licenses their right to operate a Cadillac franchise, non?

    And if so...arent franchisors bound by what corporate office says?

     

    Im just confused about the whole "vision  they might not support" thing...

    Its not what they say goes...its what the Cadillac Boss wants that goes...

    Or is it because car dealerships have their own set of laws and are not run  like  a "McDonald's franchise"?

     

    To answer your first question - unless there is a massive breach of contract, no. State franchise laws greatly favor the local business rather than the manufacturer.   What JDN can do is change allocations and punish no-compliant dealers by sending fewer and less desirable cars. 

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

    ×   Your link has been automatically embedded.   Display as a link instead

    Loading...



  • Popular Stories

  • Similar Content

    • By William Maley
      Big November Gains at Chevrolet, Buick, GMC and Cadillac Keep GM the Fastest Growing Automaker
      November U.S. retail market share highest since 2009 Year to Date U.S. Retail Share up 0.5 Percentage Points November Commercial sales were highest since 2008 DETROIT — General Motors (NYSE: GM) sold 197,609 vehicles in November to individual or “retail” customers in the U.S., up 8 percent from last year. Based on initial estimates, GM once again outperformed all full-line manufacturers, led by strong retail sales gains at Chevrolet, Buick, GMC and Cadillac. GM’s November retail sales performance drove GM’s U.S. retail share to its highest November level since 2009.
      Based on initial estimates, GM’s retail market share jumped 0.3 percentage points in November to 16.8 percent.  GM has gained retail market share in 17 of the past 20 months.
      GM’s four U.S. brands posted strong retail sales results in November compared to last year.
      Chevrolet — up 5 percent for its best November since 2004 Buick — up 22 percent for its best November since 2003 GMC — up 9 percent for its best November since 2001 Cadillac — up 17 percent for its best November since 2013 GM’s total U.S. sales in November were 252,644 vehicles, up more than 10 percent from last year.   All four brands outperformed the industry in November with Buick, Cadillac and GMC posting double-digit gains.
      “GM’s November performance reflects the continued strength of our U.S. business.  We gained profitable retail share, commercial and small business deliveries were strong and we commanded the industry’s best average transaction prices,” said Kurt McNeil, GM’s vice president of U.S. Sales Operations. “We are ahead of plan selling down our 2016 model year inventory and we expect to close out December with more retail share growth. GM is heading into 2017 in a position of strength with the planned launch of key new products, like the all-new Chevrolet Equinox, into the heart of the market.” 
      GM’s ATPs, which reflect retail transaction prices after sales incentives, were $35,767 in November, more than $4,000 above the industry average and ahead of last November. 

      Through the first 11 months of the year, GM’s U.S. retail sales were up nearly 2 percent compared to last year. GM gained 0.5 percentage points of U.S. retail market share during that timeframe, the largest retail share gain of any full-line automaker. Year to date, Chevrolet U.S. retail sales are up nearly 3 percent and the brand’s retail share has grown 0.5 percentage points to 11.1 percent. Chevrolet continues to be the U.S. industry’s fastest-growing brand.
      Year to date, Buick retail deliveries have grown more than 5 percent and Buick has gained 0.1 percentage points of retail share.
      GM continues to benefit from a strong U.S. economy and strong retail demand for its products.
      “All economic indicators show significantly improved optimism about the U.S. economy including consumer and business sentiment, which continue to drive a very healthy U.S. auto industry,” said Mustafa Mohatarem, GM’s chief economist. “We believe the U.S. auto industry is well-positioned for sales to continue at or near record levels into 2017.”
      November 2016 Retail Sales and Business Highlights vs. November 2015 (except as noted)

      Chevrolet
      Malibu and Volt were up 24 percent and 25 percent, respectively. Silverado and Colorado were up 5 percent and 39 percent, respectively. Suburban, Tahoe, Equinox and Trax were up 6 percent, 12 percent, 7 percent and 47 percent, respectively. Malibu had its best November since 1997. Silverado had its best November since 2003. Colorado had its best November since 2004. Trax, Volt and Equinox had their best November ever. Tahoe and Suburban had their best November since 2007. 17th straight month of year over year gains for Chevrolet full-size utilities. GMC
      Sierra and Canyon were up 14 percent and 43 percent, respectively. Acadia, Yukon and Yukon XL were up 4 percent, 22 percent and 19 percent, respectively. Brand ATP was at $43,887, the highest November on record. Highest November ever for Denali penetration, at 27.8 percent. Best November ever for Canyon and ninth month of year over year increases. Yukon and Yukon XL had their best November since 2007. Buick
      Regal and Encore were up 41 percent and 35 percent, respectively. 68 percent of sales were crossovers. Best year to date retail performance since 2005. Cadillac
      Escalade was up 24 percent and had its best month of the year. Escalade had its best November since 2007. XT5 had its best month since launch with sales up 12 percent over last month and up 27 percent over the SRX last November, the vehicle it replaced. Year to date ATP was $53,690, the highest ever in Cadillac history Average Transaction Prices (ATP)/Incentives (based on JD Power PIN estimates)
      GM’s ATPs, which reflect retail transaction prices after sales incentives, were $35,767 in November, more than $4,000 above the industry average. In November, GM’s incentive spending as a percent of ATP was 13.7 percent, above the industry average of 12.4 percent. However, year to date, GM’s incentive spending was 11.7 percent, slightly above the industry average of 11.4 percent and well below the incentive spending of its domestic competitors and many of its global competitors. Fleet and Commercial
      Automotive Fleet magazine named Malibu “Fleet Car of the Year”. GM Fleet sales were up 19 percent versus last November. Fleet sales were 22 percent of GM’s sales for the month. Commercial deliveries were up 11 percent for the month and it was the best November Commercial sales since 2008. Malibu Commercial deliveries were up 170 percent versus last November. Small Business deliveries were up 15 percent for the month versus last November, driven by large vans, which were up 93 percent and large pickups, which were up 16 percent versus last November. Federal government sales were up 9 percent versus last November. Rental sales were up 27 percent versus last November but are down 25 percent CYTD, according to plan. GM’s outlook on its daily rental sales mix remains in the 11 percent range of total U.S. sales for 2016 and daily rental sales for the year are expected to be down about 75,000 vehicles. Industry Sales
      GM estimates that the seasonally adjusted annual selling rate (SAAR) for light vehicles in November was approximately 17.9 million units. On a calendar year-to-date basis, GM estimates the light-vehicle SAAR was 17.5 million units.
    • By William Maley
      It has been 14 years since Cadillac competed in endurance racing with the Northstar LMP at the 24 Hours of Lemans. But next year at the 24 Hours of Daytona, Cadillac will once again compete.
      The automaker announced today that it will take part in the new Daytona Prototype international (DPi) class in the 2017 IMSA WeatherTech Sports Car Championship with the Cadillac DPi-V.R. Cadillac's DPi is based on the Dallara LMP2 chassis. Thanks to new regulations, Cadillac and other manufacturers are able to make changes to certain exterior parts to help make their vehicle stand out.
      Power comes from a naturally-aspirated 6.2L dry-sump V8 with 600 horsepower. This engine was used in the Corvette Daytona Prototypes. Curb weight is a light 2,050 pounds.
      "Cadillac’s V-Performance production models – the ATS-V and CTS-V – are transforming our brand’s product substance, earning a place among the world’s elite high-performance marques. The Cadillac DPi-V.R further strengthened our V-Performance portfolio, placing Cadillac into the highest series of sports car racing in North America," said Cadillac president Johan de Nysschen.
      Action Express Racing and Wayne Taylor Racing will field the Cadillac DPi-V.R.
      Source: IMSA

      View full article
    • By William Maley
      It has been 14 years since Cadillac competed in endurance racing with the Northstar LMP at the 24 Hours of Lemans. But next year at the 24 Hours of Daytona, Cadillac will once again compete.
      The automaker announced today that it will take part in the new Daytona Prototype international (DPi) class in the 2017 IMSA WeatherTech Sports Car Championship with the Cadillac DPi-V.R. Cadillac's DPi is based on the Dallara LMP2 chassis. Thanks to new regulations, Cadillac and other manufacturers are able to make changes to certain exterior parts to help make their vehicle stand out.
      Power comes from a naturally-aspirated 6.2L dry-sump V8 with 600 horsepower. This engine was used in the Corvette Daytona Prototypes. Curb weight is a light 2,050 pounds.
      "Cadillac’s V-Performance production models – the ATS-V and CTS-V – are transforming our brand’s product substance, earning a place among the world’s elite high-performance marques. The Cadillac DPi-V.R further strengthened our V-Performance portfolio, placing Cadillac into the highest series of sports car racing in North America," said Cadillac president Johan de Nysschen.
      Action Express Racing and Wayne Taylor Racing will field the Cadillac DPi-V.R.
      Source: IMSA
    • By ccap41
      " It's a golden autumn morning in rural upstate New York. Backpacked kids wait by mailboxes for the school bus. I'm driving through pockets of valley mist to New York state's most famous racing circuit, to witness the shakedown testing of a race car so top-secret, it's still wrapped in camouflage.
      After a 14-year absence, Cadillac is readying its return to endurance racing. The last time the American automaker competed in top-level prototype racing was 2002, when the ill-fated Northstar LMP finished 9th at Le Mans. Audi's dominant R8 prototype notched its third consecutive victory at the Circuit de la Sarthe that year.
      Wayne Taylor and Max Angelelli were co-drivers in that final Cadillac attempt at Le Mans. They'll both be at the track today. Taylor, 60, has graduated from the driver's seat to run Wayne Taylor Racing, the principal team partner in Cadillac's new motorsports endeavor; Angelelli, 49, shares co-driving duties with Taylor's sons Ricky, 26, and Jordan, 24.
      All four will be responsible for the imminent future of Cadillac endurance racing, in a program that tasks itself with making top-level sports car racing engaging and relatable again. I'm here to learn if Cadillac, and the series itself, can cut it.
      The camouflaged Caddy you see here is officially known as the DPi-V.R. It's built to IMSA's new Daytona Prototype international (DPi) formula, to compete in the IMSA WeatherTech SportsCar Championship starting in 2017.
      Think of DPi as an effort to make top-level prototype racing a little more interesting, and relatable, for casual race fans. The cars share a chassis with the LMP2 prototypes that compete in the FIA World Endurance Championship and the 24 Hours of Le Mans, built by one of four approved constructors—Dallara, Onroak Automotive, ORECA or Riley/Multimatic. ..."
      http://www.roadandtrack.com/motorsports/news/a31697/cadillac-dpi-v-r-exclusive-photos/
       




    • By William Maley
      In light of the fatal crash involving a Tesla Model S and Autopilot back in May, automakers are reconsidering their plans for rolling out their autonomous technologies. General Motors was planning to introduce Super Cruise on the Cadillac CT6 sometime next year. But in light of Tesla crash, GM is rethinking their plans.
      “We aren’t putting a specific date on it,” said GM CEO Mary Barra at a cybersecurity conference.
      Officials told The Detroit Bureau later on that the feature would still appear next year. This would be corroborated by a Cadillac spokesman to Motor Trend.
      “Right now, the plan continues to be that we will introduce [super Cruise] in the Cadillac CT6 in calendar year 2017,” said Cadillac spokesman Donny Nordlicht.
      “We want to make sure it is safe for our customers to use and we’ll launch it when we’re confident in the technology,” Nordlicht said. “Our engineers have been testing and validating the technology for the past several years to make sure all of our systems are focused on providing the customer among the most intuitive and safe solutions. We’re not driven by a deadline, we’re driven to make the system customer-friendly and safe so the exact month of introduction cannot be announced at this time.”
      Insiders at GM believe that Super Cruise should be able to avoid some of the problems that plague Tesla's Autopilot. Like Autopilot, Super Cruise blends information from radar and cameras. But Super Cruise will also use a high-definition map that provides more details than what you can get on a current navigation system. This map will help the system determine where the vehicle is and whether it is safe to engage the system. There is also a retina detection system that monitors the driver and will switch off Super Cruise if it detects if the driver isn't paying attention.
      Source: The Detroit Bureau, Motor Trend

      View full article
  • Recent Status Updates

  • Who's Online (See full list)