Cadillac President, Johan de Nysschen, has put forth the final touches for his brand’s revised dealership program. Titled, “Project Pinnacle“, the dealership program aims to transform the Cadillac buying experience, while setting new standards for dealerships and how stores operate.
Automotive News obtained a draft of the final plan, shedding light on what we can expect to see from Cadillac dealerships in the near future. The plan will break dealerships down into tiers, with each tier expected to offer an assortment of features. Some dealerships are welcoming the changes, while others say it’s one too many hoops, for potentially less money.
“I’ve crunched the numbers,” said one high-volume Cadillac dealer in the Northeast. “They’re asking us to take on a lot more overhead to make less money.”
When Project Pinnacle goes into effect, dealers will be paid out bonus money for hitting sales and customer relation targets, while also earning money through certified pre-owned sales. It sounds easy enough, but when tacking on additional overhead through new requirements, it’s also easy to see why dealers may be skeptical.
The five tiers assigned correlate to what dealerships will be expected of adding to their facilities. Tier 1 are the largest Cadillac dealers, and will be expected to offer the most in terms of customer service and employees, such as a concierge, plus pick-up and drop off services. Tier 5 may transform into service only, which are normally bundled in with other GM brands.
For some tier 5 dealers, the changes may not even be worth the hassles, as one dealer stated.
“Right now I have Chevrolet salespeople serving Cadillac customers. I don’t blame Cadillac for wanting to change that,” said the dealer, who didn’t want to be identified. “But for me it doesn’t matter, because I don’t need to sell one Cadillac to make a lot of money. I’m not sure what I’ll decide.”