The backlash towards Cadillac’s upcoming dealer structuring program, Project Pinnacle, may be fading, according to the latest report from Automotive News. Following the news of Cadillac offering buyouts to 400 of its smallest dealerships, 98.7 percent of Cadillac’s dealers have adopted the standards put in place by Project Pinnacle.
Project Pinnacle turns Cadillac dealerships into a tiered system regarding financial incentives. Most dealers have opted to place themselves in higher tiers in hopes of earning greater rewards, however, the brand’s smallest dealers can opt to use “virtual showrooms“, which would leave zero inventory on hand to actually sell vehicles.
As the report states, it would seem unanimity has overtaken Project Pinnacle, but some dealers report they feel as if they had no choice but to adopt the stringent standards, which aim to put Cadillac in a better position against its core rivals.
“It sounds like a Soviet election to me. You’re all required to show up and vote, but we only have one candidate,” said Brian Maas, president of the California New Car Dealers Association. “I think there are lots of Cadillac dealers in California and across the country who would say, “We did it under protest.'”
The program will not have any financial implications for dealers signed up until January 2017, with the remainder of 2016 serving as a “full simulation”, according to the brand.