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Cadillac Poised To Expand Book Program, Open New Cadillac House Locations

Cadillac is in an innovative state of mind, something the brand’s CMO, Uwe Ellinghaus, believes wouldn’t have been possible without moving the luxury brand’s operations to New York City itself.

Recently, Cadillac chief marketer told Automotive News the New York City move continues to fuel the brand’s experimental marketing procedures, which have included helicopter rides, virtual reality dealerships, and maybe its most-innovative new program, Book.

The year 2017 has been noted as a way for Cadillac to prime itself and flex its marketing muscles as it prepares for an infusion of new product beginning in 2018. These initiatives have also included the Cadillac House, where more than 170,000 visitors have come to spend time. In the next 12 to 18 months, Ellinghaus said more Cadillac Houses will open up in Dubai, Shanghai and Toronto.

Ellinghaus also revealed Book by Cadillac will soon begin to exit its pilot program, and the brand is even working with its dealership network to work out a proper business model. Book allows users to rent a Cadillac Platinum or V model for $1,500 per month without committing to financing, or leasing.

It’s currently only available in New York City, but an expansion of the current program and launches in new cities is underway, per Cadillac boss, Johan de Nysschen. He said Cadillac dealerships could hold the secret to Book’s success.

“As we move from the piloting and beta-testing phase of Book to commercial execution, our desire is certainly to leverage our dealer organization to have the widest reach,” de Nysschen said. “The dealers have a lot to bring to the table,” including space, vehicle fleet, service and maintenance, he added.  90 percent of those interested in Book have never owned or leased a Cadillac.

One of the biggest hurdles will be to work out which party owns the Cadillac vehicles, and how costs and revenue would be shared between Cadillac and franchised dealerships. One thing is certain, though, Cadillac believes its Book service could be leasing 2.0.

Former GM Authority staff writer.

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Comments

  1. Cadillac House has had 170,000 visitors in what, less than 2 years? 170,000 New Yorkers who we all know can very well afford rents that are too damn high.

    Remember the commenters on here saying De Nysschen’s move to NY and Ellinghaus’ House were “triggered snowflakes”?

    So Bob O, how much profit can GM make from rich New Yorkers, and how much profit can GM make from continuously replacing your bottom-cushion leather on your 20yo GMC? Profits are profits, and triggered snowflakes have plenty to give, while self-sufficiency “hard-men” survivalists have no profit potential at all. Corporations like GM look at Survivalists and think “no profit there, who cares about them?”.

    Reply
    1. Go kick rocks

      Reply
  2. When Cadillac inevitably offers Book at 2-3 tiered price points I fully expect a huge shift from Millenials buyers to this model.

    The reasons I’ve never leased:
    1. Restriction on miles
    2. Liquidity of Lease

    Book solves those issues and gives Options!

    Reply
    1. Additionally, as a potential customer of Book, I’d like it to feel exclusive like a Amex Platinum or Centurion Card does. I want a cool metal card I can show my friends and an easy to use App for my phone and watch.

      Also, as a Book Member id always want to feel like I was dealing with the Book service team, not Joe Don Cadillac down the street- even if that’s where the car came from and is going back too.

      Reply
  3. Reading “book” I thought GM would start publishing books … coffee table books, probably.

    Now, after reading the article, I know better.

    FCA is starting a similar program. Unfortunately I can’t fish its designation from my battered memory.

    Reply
  4. I think Book is a great idea, the price is a bit high IMO, but its defiantly a cool concept. Hopefully the dealers will make out well with Book after getting screwed up the a$$ by pinnacle.

    Although I’m still curious to see how many customers/profit Cadillac has gained from the Cadillac House, my best guess…. a big fat 0.

    Reply
  5. I live in Tampa. I seriously have been considering their service for months. But the deal dies…..in a couple or few years. Why on earth does it take that long? I have no interest and will buy another brand over the winter. Dangle the carrot then starve me for a few years. No thank you. This probably kills it for Cadillac too.

    Reply

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