Search the Community
Showing results for tags 'small dealers'.
Found 4 results
-
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) -
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) View full article -
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) -
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) View full article
