• Sign in to follow this  
    Followers 0

    Cadillac's President Talks About Virtual Stores To Their Smallest Dealers


    • Johan de Nysschen introduces the idea of a virtual showroom

    Cadillac president Johan de Nysschen is trying to sell Cadillac's lowest-volume dealers (selling 50 or less models in a year) on transitioning to a virtual showroom.

     

    Automotive News says de Nysschen outlined this concept to dealers last week during national brand meetings in Southern California. The concept involves a dealer going to a concierge-style approach where salespeople would visit prospective buyers either at home or work, equipped with a touchscreen device with vehicle configuration or virtual-reality units. Dealers who go with this concept will also not stock Cadillac vehicles. Instead, orders would be coming from regional inventory center.

     

    de Nysschen has expressed concern for dealers that have Cadillac in the same showroom as one of the other GM brands (most of the low volume Cadillac dealers), saying he'll have trouble tolerating dealers "selling Cadillac out the back door of a Chevy store" last year.

     

    But de Nysschen also sees an advantage in having a sales and service footprint that covers America's smaller towns - an area that many of Cadillac's competitors don't exist in. Going with the virtual dealer concept, de Nysschen believes Cadillac can retain that point and give dealers the relief of not having to stock a small number of vehicles on their lot.

     

    "We want to work with those small dealers to give Cadillac a competitive advantage in terms of reach into their local communities, but do so in a way that's more closely aligned with what we think the Cadillac luxury brand experience should be," said de Nysschen to Automotive News.

     

    It's a way to "immerse customers in a virtual brand experience, so that our dealers need not concern themselves with investing in showrooms and brand-element requirements, which clearly are cumbersome if you're such a small dealer."

     

    But dealers are worried about the virtual showroom concept as it would basically become a service center for Cadillacs that might sell a new vehicle once in a blue moon.

     

    "How does having fewer Cadillacs on display at dealerships in all of these communities help sales?" asked Byron Hansen, owner of Hansen Motor Co. in Brigham City, Utah.

     

    "It makes you wonder what they're trying to accomplish."

     

    Source: Automotive News (Subscription Required)

    0


    Sign in to follow this  
    Followers 0


    User Feedback


    Interesting, this makes me think of a hybrid approach to how Tesla has been selling.

     

    For major towns, I would say no this does not need to be done even if they do sell only 50 a year, this could be optional for a dealer. They could stay with having the inventory on hand or go virtual. 

     

    For small towns where you might only find a FORD, Dodge/RAM and Chevy Dealership, I can see this being an option for the few people that want a luxury auto.

     

    It does make one wonder if OEMs are not trying to find a way to get rid of dealers that are not financially self supporting.

     

    So could we end up with a Cadillac Kiosk at our local small town strip mall then? Possible that a person could go into business as a sellar of Cadillac from their Kiosk and never have to deal with inventory or repairs as they would direct the buyer to their local GM dealer. Some interesting ideas around this.

     

    Would the next logical step then be to allow orders via the Cadillac web site and you pick up your auto at the closest GM dealer unless you pay to have it delivered to your house. The dealer who makes money is the one that does the prep work for delivery and then any repairs afterwards.

     

    This will be interesting to watch.

    0

    Share this comment


    Link to comment
    Share on other sites

    Bad idea.

     

    First off, why are there dealers selling less 50 cars per year, the tis less than one per week.  Secondly, the "virtual showroom" is basically like what you get on the Cadillac website right?  A vehicle configurator tool?  And third, who wants to buy a car they never drove?  I don't see how Cadillac's big claim is that they have better chassis dynamics and handling than the Germans, but then don't have the customer drive it.

    0

    Share this comment


    Link to comment
    Share on other sites

    Bad idea.

     

    First off, why are there dealers selling less 50 cars per year, the tis less than one per week

     

    From the story,

     

     

    "..Cadillac in the same showroom as one of the other GM brands (most of the low volume Cadillac dealers)."

    Most of these dealers are in small towns of America and have most of the GM brands in one dealer. They might not sell a lot of Cadillacs, but they do move a lot of the other brands.

     

     

    who wants to buy a car they never drove?  I don't see how Cadillac's big claim is that they have better chassis dynamics and handling than the Germans, but then don't have the customer drive it.

     

    I have to agree with you on this point. If a customer wants to try out the vehicle, it would be nice to have a couple of demo vehicles that you can use along with this showroom idea.

    0

    Share this comment


    Link to comment
    Share on other sites

    Bad idea.

     

    First off, why are there dealers selling less 50 cars per year, the tis less than one per week.  Secondly, the "virtual showroom" is basically like what you get on the Cadillac website right?  A vehicle configurator tool?  And third, who wants to buy a car they never drove?  I don't see how Cadillac's big claim is that they have better chassis dynamics and handling than the Germans, but then don't have the customer drive it.

     

    While you might want to test drive a car, todays Millennials for the most part buy online and go from there. This is part of a growing trend as shown in the reduced sales from retail over the last 5 years and increase in online driving. Many Millennials that I work with trust the reviews and buy.

     

    I for one am like you, I want to test drive and check it out all over to make sure it is what I want. 

     

    Yet there is a place for a virtual showroom. Tesla has shown that this can be done with their purchase

    0

    Share this comment


    Link to comment
    Share on other sites

    Today's millenials are not buying Cadillacs, they aren't even buying cars.

     

    And I know there are Chevy dealerships with a Cadillac franchise also to sell their 3 cars a month, but I question why you even let them keep those.

     

    The only way this virtual showroom could make sense is selling a car to a current Cadillac owner that is buying the same model.  If your 3 year lease on an XTS is up, selling another in this fashion could work since the car hasn't changed.

    0

    Share this comment


    Link to comment
    Share on other sites

    While I see that this may be the direction that car sales are heading, it still seems to me like a desperate move on Cadillac's part.  If you are selling a luxury car, then the dealer should be able to "afford" the "inventory" that is available for people to touch, feel, see, drive, and buy.

    0

    Share this comment


    Link to comment
    Share on other sites

    Test drives should be mandatory. People think they know what they want, then they drive it and the bitching starts. Better they find out they dislike it before they buy.

    Most still want to test drive. To not have something to drive kills a sale.

    All dealers of any brand should have a continuous fleet of demo cars. Not in every config of course. But caddy should always have an ATS 2.0t AWD to test. Chevy should always have a LT of every sedan purely for testing. For the volume stuff basically. Of course volume and Cadillac are conflicting terms.

    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

      Only 75 emoticons maximum are allowed.

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

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Today's Birthdays

    1. 94commo
      94commo
      (50 years old)
    2. Aerodynamic
      Aerodynamic
      (30 years old)
    3. LPE427Fbird
      LPE427Fbird
      (42 years old)
  • Similar Content

    • By William Maley
      The rivalry of the Chevrolet Camaro and Ford Mustang has been going for ages in the U.S. But now this fight has expanded into China.
      Automotive News reports that a growing group of Chinese buyers are being drawn towards to these models as the exude the no-apologies Americana attitude.
      "We're seeing the beginning of a muscle car culture here. Something that is uniquely American appeals to the Chinese consumer. The image that it relays to the automotive public is very positive," said James Chao, a China market auto analyst with IHS Markit.
      Sales of both models are small with Chevrolet only moving 2,000 Camaros since its launch 2011. Ford is doing slightly better with 6,200 Mustangs sold since its launch in 2015. In the first quarter, Mustang sales saw a 90 percent increase to 963 vehicles. Part of the reason for the slow sales comes down to the price. The Camaro starts about 399,900 yuan (about $58,000) - more than double of the base price of $26,900 in the U.S. The Mustang isn't that far behind, costing about $15 dollars less. Prices are increased due to a 25 percent import tariff on U.S. made vehicles, homologation and shipping fees, and Chinese buyers trending to splurge on higher-time models.
      But despite the low sales, the Camaro and Mustang are bringing buyers to dealers. These models act as eye candy to help draw shoppers into showrooms with the hope they'll purchase a vehicle, where it be the eye candy or something a little less exciting.
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      The rivalry of the Chevrolet Camaro and Ford Mustang has been going for ages in the U.S. But now this fight has expanded into China.
      Automotive News reports that a growing group of Chinese buyers are being drawn towards to these models as the exude the no-apologies Americana attitude.
      "We're seeing the beginning of a muscle car culture here. Something that is uniquely American appeals to the Chinese consumer. The image that it relays to the automotive public is very positive," said James Chao, a China market auto analyst with IHS Markit.
      Sales of both models are small with Chevrolet only moving 2,000 Camaros since its launch 2011. Ford is doing slightly better with 6,200 Mustangs sold since its launch in 2015. In the first quarter, Mustang sales saw a 90 percent increase to 963 vehicles. Part of the reason for the slow sales comes down to the price. The Camaro starts about 399,900 yuan (about $58,000) - more than double of the base price of $26,900 in the U.S. The Mustang isn't that far behind, costing about $15 dollars less. Prices are increased due to a 25 percent import tariff on U.S. made vehicles, homologation and shipping fees, and Chinese buyers trending to splurge on higher-time models.
      But despite the low sales, the Camaro and Mustang are bringing buyers to dealers. These models act as eye candy to help draw shoppers into showrooms with the hope they'll purchase a vehicle, where it be the eye candy or something a little less exciting.
      Source: Automotive News (Subscription Required)
    • By William Maley
      If the Volkswagen diesel emission scandal hasn't swayed you from wanting one, then you'll be happy to hear Volkswagen will once again be able to sell brand-new 2015 model year TDI models. Green Car Reports says near 11,000 TDI models will soon be back up for sale once they are updated with new software, making them legal.
      Volkswagen does caution those interested in picking up a new TDI to call their nearest dealership to see if they have any in stock.
      But that's not all. Volkswagen is offering some massive discounts on these models. CarsDirect reports that Volkswagen is offering 0% APR for up to 72 months and $5,000 cash bonus if you decide to buy. Interested in leasing one? Volkswagen will offer a cash bonus of $8,500. 
      There are a couple of caveats to this offer. First, you need to have an excellent credit history to qualify for either offer. Second is that Volkswagen isn't advertising this offer.
      "We will not be advertising the available incentives from our financing arm as they [sic] vehicle availability will vary per dealership," said Volkswagen spokeswoman Jeannine Ginivan.
      Source: Green Car Reports, CarsDirect

      View full article
    • By William Maley
      If the Volkswagen diesel emission scandal hasn't swayed you from wanting one, then you'll be happy to hear Volkswagen will once again be able to sell brand-new 2015 model year TDI models. Green Car Reports says near 11,000 TDI models will soon be back up for sale once they are updated with new software, making them legal.
      Volkswagen does caution those interested in picking up a new TDI to call their nearest dealership to see if they have any in stock.
      But that's not all. Volkswagen is offering some massive discounts on these models. CarsDirect reports that Volkswagen is offering 0% APR for up to 72 months and $5,000 cash bonus if you decide to buy. Interested in leasing one? Volkswagen will offer a cash bonus of $8,500. 
      There are a couple of caveats to this offer. First, you need to have an excellent credit history to qualify for either offer. Second is that Volkswagen isn't advertising this offer.
      "We will not be advertising the available incentives from our financing arm as they [sic] vehicle availability will vary per dealership," said Volkswagen spokeswoman Jeannine Ginivan.
      Source: Green Car Reports, CarsDirect
    • By William Maley
      The new Volkswagen Tiguan looks to solve some of the pressing issues of the current model such as its size that puts it between subcompact and compact crossovers. But that doesn't mean the current Tiguan is leaving anytime soon.
      Hendrik Muth, VW’s senior vice president for product marketing tells Car and Driver that the current Tiguan will stick around for 2018 and 2019, wearing the Tiguan Limited nameplate. Muth explained this model will be aimed at more budget-minded buyers and those who don't want the bigger footprint of the new Tiguan. Another reason mentioned in Car and Driver's story is the current Tiguan saw its best sales in 2015 and 2016.
      One item that could put some people off from buying the Tiguan Limited is will not get the  6-year/72,000-mile warranty announced for the 2018 Atlas and Tiguan crossovers. Expect pricing to be announced sometime in the fall.
      Source: Car and Driver
      Pic Credit: William Maley for Cheers & Gears

      View full article
  • Recent Status Updates

  • Who's Online (See full list)