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)