Cadillac’s dealership restructuring program, Project Pinnacle, has been a source of disagreement between executives and dealerships themselves. Since Cadillac President Johan de Nysschen revealed the sweeping changes in 2016, dealers have voiced their opinions over various facets of the program.
Now, Cadillac has relaxed a few areas of Project Pinnacle to allow for a smoother transition into the program. Notably, small dealerships will be able to keep physical inventory on hand, rather than switch to a virtual reality dealership. Previously, Cadillac offered buyouts to its smallest dealers, which few took.
Small dealerships have felt the changes were an effort to squeeze them out of the system, but de Nysschen reiterated that was never the intention.
“We are not our dealers’ enemy,” de Nysschen told Automotive News in a phone interview. “We are here to work together, but it is going to require a shifting in approach over time from both ourselves and our dealer partners.”
Aside from the virtual inventory requirement, dealers do not have to provide 24-hour roadside assistance and do not have to work with brand reputation consultants.
Project Pinnacle places Cadillac dealers in tiers, and the program aligns various incentives and rewards accordingly with volume. Dealers may also move up a tier, but dealers must make various investments to meet requirements. The program’s structure largely encourages dealers to remain in the same tier they are assigned, though.
Dealers will meet with Cadillac this week to discuss changes and updates to the program for 2018, but for now, Project Pinnacle soldiers on as many dealers already know it.