Cadillac Considering Regional Inventory Hubs To Keep Dealer Inventory Fresh13
In August, General Motors’ Cadillac achieved a 77-day supply of vehicles in the U.S. — the brand’s lowest level in nearly five years. When it comes to automotive inventory, the lower the days supply, the better — as it keeps vehicles in stock new and fresh for customers, while also allowing dealers to pay less for stocking (floorplanning) the vehicle. And though the drop in days supply puts GM’s prestige luxury car brand on the right path, it’s still not at the levels that Cadillac president, Johan de Nysschen would like to see. His goal is a 60-day supply, the levels at which competitors such as BMW and Mercedes-Benz manage their inventory. Luckily, Cadillac is already considering a possible solution to further decrease its days.
“Centralized regional inventory hubs”, de Nysschen recently told Automotive News during the recent media drive for the 2016 CTS-V sedan. These hubs can be used by Cadillac’s lower-volume dealerships to obtain vehicles as needed.
“That keeps the inventory fresh and frees them from having to tie up so much capital,” says de Nysschen, adding that the idea is “under discussion” with Cadillac’s dealers.
Cadillac’s competitors have considered a similar approach to keeping inventory fresh. But unlike Cadillac, whose goal involves turning inventory faster, rivals are examining the solution due to ever-growing lineups that make it difficult for dealers to keep adequate supplies of each model and model variant in stock.
According to de Nysschen, aging inventory is a problem for both the dealer and the brand. For the dealers, it’s more a financial problem than anything else, since the stores have money tied up in floor-planning the aging cars. And it doesn’t help Cadillac’s image to have vehicles form previous model years on the lot. Either way, the circumstance usually results in large discounts that negatively impact residual values, negatively impact the brand image, and make a sale less profitable for both GM/Cadillac and the dealer.
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From the “You Can’t Make This Up” Department: The wrap-up of the post above ends with this:
“And it doesn’t help Cadillac’s image to have vehicles from previous model years on the lot. Either way, the circumstance usually results in large discounts that negatively impact residual values, negatively impact the brand image, and make a sale less profitable for both GM/Cadillac and the dealer.”
The post, then, is followed (in a more substantial typeface), by this:
Cadillac 2015 Closeout
Whopping “August Only” Discounts! Get a 2015 Cadillac Internet Price.
Still doesn’t sound like the language a confident, “prestige luxury car brand” would use.
“Whopping” still feels desperate and disingenuous. Especially after reading the preceding paragraph.
Clearly you are new to this industry.
As I already educated you in a previous comment, dealers are free to use whatever language they want in their ads (within the limits of legalities). BMW dealers have the same lingo more often than you think. It’s just better controlled by them.
And what’s this about a confident whatever? Dude, get this: CADILLAC IS UNDERGOING ITS BIGGEST CHANGE SINCE ITS INCEPTION RIGHT NOW. get it? Everything is under scrutiny. And everything is under constant review. Are they confident? Maybe. But what does one have to do with the other?
Sounds like american English to me.. I’m confused should it be in proper British English is “astonishing” a better word? Or should it be in german?
You mean the same discounts and offers or sales that every other Luxury divisions this side of Bentley offers on all their cars at these time of year?
Every MFG will give you discounts and closeouts at Christmas when sales are slow. How many years have we seen Santa driving a Benz? And this time of year where they clean up left over models in July and August. Cadillac is not doing anything any different than the others this time of year. This has been why most of my cars are bought in August for the last 30 years. Lexus and Infinity also do the same as well as BMW and Audi.
Like Silent stated you either have no clue or you are just out to bash here as you really have no grounds here to the statements you make on this subject. If you do you need to come up with a way to explain the others doing the same thing.
Caddys products look stale….thay need a new look…..the CT6 should be revamped for maybe 2022 and take styling from the Elmiraj concept…… the 2020 CT8 should take styling from the Ciel concept.
By 2022, those two show cars will b stale and a new take on Art and Science will long be on display.
I loved Ciel but that ship has already sailed.
“Caddy products look stale”.
Shut up and get a clue. Thank you. The Internet.
I think the current product looks pretty good but I do agree that if they had made the Elmiraj for production just as the concept was shown then dealers would have a problem keeping them in stock.
Those cts’s don’t look stale at all coming down the highway!!
I really don’t get why people attack Cadillac’s looks. That’s the absolute LAST criticism anyone would have for Cadillac. Art and Science becomes increasingly stunning with each generation.
The CTS and ATS are not stale and will get a Johan make over by 2018 as they are changed to the CT5-6. In the interim they will continue to receive tune ups like the better Cue systems and the like.
I believe the Elmiraj will point to the future with come changes as the design will have to evolve with time. The issue here was the Elmiraj came at a time when GM was leaving one form of leadership for the present one. The design caught them at a bad time. Also they have no suitable platform to put it on as the Alpha and Omega both did not have the ability to capture the wheel base of the show car per one report from GM. That I am sure will be corrected and we will some very compelling designs as they morph the A&E into the future. Less hard lines but more dramatic styling.
At this point we can not give them a win or a fail as we still have not seen what the present people in charge have in mind yet. They are still holding the cards. All we know things will change in many ways styling, interior, engines and dealers.
the two concepts are fresher than the current Caddys….by 2020 the current Caddys will be vary outdated…im pretty shore that the two concepts will not be stale by 2020.
I’m not a big fan of Caddys wedged body shape Cadillac had for years now….assuming the two show cars have a new bold body shape….hopefully Caddys by 2020 will revolve around the two show cars….Im not saying the current Caddys look bad…they look good…. but they doen’t really break much ground…..the CT6 breaks ground in curb weight and chassis and suspention…..but on the outside.. it looks dull.