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William Maley

Cadillac News: Cadillac Works On Dealer Incentives

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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)


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Sounds like an area that needs to be addressed fer sure. Certainly another sign that Cadillac is serious about becoming more of a premium brand.

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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.

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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.

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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

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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.

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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"?

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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. 

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