Cadillac President Johan de Nysschen has come under fire by multiple state dealer groups for the executive’s dealer reorganization program known as “Project Pinnacle.”
The reorganization has been branded by dealers as a way to cut off smaller Cadillac dealerships and put those dealerships at a major disadvantage.
Automotive News secured a copy of a strongly-worded letter to de Nysschen by multiple dealer groups. The letter, penned by seven state dealer groups, states the plan funnels money to larger stores in a disproportionate manner, leaving smaller dealers high and dry.
Project Pinnacle “picks winners and losers,” the letter stated. “The winners can make the required investments and prosper. The other dealers face business failure.”
A separate letter from the Automotive Trade Association Executives also opens fire on the plan, stating the tiered structure may conflict with state franchise laws forbidding price discrimination.
The report states de Nysschen has confirmed the receipt of the letters and plans to deliver a formal response to calm fears over the plan. However, the resistance is strong, with the letter asking de Nysschen to “rethink this entire program.”
The letter was signed by New Jersey, Connecticut, South Carolina, North Carolina, New Hampshire, Kansas, Wisconsin and metro Cleveland dealership association heads.