Currently, Cadillac dealer incentives place a heavy focus on growth, and continued growth, a very standard model. But, times are chaining, and Cadillac is changing even more so.
“If we want to have a strong brand, we need to have a strong franchise,” de Nysschen said. “To do that, it means the dealers are profitable and that they’re able to invest in the business and to build the customer experience.”
The new program would eventually replace two profit makers for many dealerships: the Standards for Excellence and Essential Brand Elements. Standards for Excellence is a quarterly bonus program that rewards dealers for increasing sales and hitting customer-service targets, while Essential Brand Elements pays money primarily to defray the cost of dealership renovations.
The new program won’t emphasize as much growth, but rather will focus on performance. de Nysschen explained it will recognize dealers making investments into the franchise network, the right people and right behaviors.
According to the report, many dealers are not initially happy with the proposal, as many franchise have only just finished, or are still constructing, new improvements under the most recent GM dealership image program. Though, Cadillac insisted it does not expect “Taj Mahals.”
Cadillac still plans to sit down with smaller dealerships to work on a “boutique” dealer model, which may be applied to stores with multiple brands.