Cadillac’s Project Pinnacle dealer structure underwent changes yet again after the brand dropped the fifth tier of the structure. The fifth, and most controversial tier, required dealers to switch to a virtual reality (VR) showroom and not hold physical inventory at the dealership. Cadillac envisioned it as a way to make small dealerships more efficient.
However, more dealers saw it as a way to squeeze them out of the business by not keeping any actual inventory on hand. The lack of interest led to Tier 5’s elimination altogether, reports Automotive News.
“We decided to focus on our larger dealers with respect to VR so it will become a permanent element of our new facility image for the dealers who decide to go through the voluntary facility upgrade,” Cadillac spokesman Andrew Lipman said.
The VR element is not linked to Project Pinnacle at all now, but Cadillac could reinstate Tier 5 again if smaller dealers begin to show interest in it. Right now, Will Churchill, head of the Cadillac National Dealer Council, said axing it is the right decision.
“The Cadillac dealers are under an immense amount of expense pressure right now,” he said.
Cadillac’s first dealership to embrace VR, Cadillac of Greenwich, wasn’t obligated to add the element, but Eric Sandstrom, the operator of the store, said it’s an excellent tool to show vehicle trims and other options right in the showroom. “It’s realistic enough to really get the feel for the car,” he said. Customers “have been able to make the decision right there on the spot.”
Comments
How silly. How does virtual reality tell me how comfortable the seats are, how quiet the car is, how the ride quality is over broken pavement with today’s obsession with oversized tires, how the engine and transmission respond, how the stereo sounds etc etc. It’s time for people today to come back down to real reality. Wouldn’t a simple car brochure that has been used for the past 100 plus years be enough to show the customer pictures, colors, power and torque, transmission speeds, features and options etc?
“How does virtual reality tell me how comfortable the seats are, how quiet the car is, how the ride quality is over broken pavement with today’s obsession with oversized tires, how the engine and transmission respond, how the stereo sounds etc etc.”
Brochures don’t tell you that either.
Brochures don’t tell you how comfortable the seats are, how quiet the car is, how the ride quality is, how the engine and transmission respond, or how the stereo sounds. Neither VR or a brochure will tell you those subjective facts.
On the other hand, both brochures and VR can tell you what colours are available, both can depict the hard technical data, and both can list the exact same advertising copy. The real question is if the customer wants to read it all or see it all.
Neither a brochure or VR will tell you as much as a test drive.
You can take a brochure home and compare the multiple colors, while mulling over the decision. Also, most electronic displays do not show you the true color of the car.
More than likely the aspect of no on-hand inventory didn’t mean no demo vehicles available for a test drive. I suspect it was more so that multiple trim levels and engine options would be limited for testing. And then order and wait could possibly put smaller dealers lower on the list for order fulfillment.
Apparently not. Virtual reality is more immersive than reading a brochure.
Nothing exists to replace a test drive though.
For ever the Factory thinks they are the only ones that can sell anything. It is not just the Auto Industry. They forget to their own peril, that GM just about drove Ford out of business, by selling through Dealers instead of direct. WW1 pretty much saved Ford from going under as most manufacturers did.
Those guys sitting in their offices dreaming up wonderful ideas that do not work, to justify their desks, is an ongoing problem.
I think VR would be a nice addition to vehicles in the showroom but not a replacement. With VR you could get a look at all the option and color combinations where as to keep an inventory of every combination of vehicle would cost prohibitive.
Seems like a better idea for pop-up stores and maybe, like, Cadillac House(s).
Done well, it’s kind of a gamer experience, and is relatively tech-forward.
But not a replacement for a test-drive.
When I go shopping for a automobile when I go to the dealer the first thing I do sit in the car see how it feels. I take a good look around the car. Then I ask the dealer to let’s go for a test drive so I can get to see how the car rides and feels and how it performs. Without being able to do hands on. I would never purchase a car by way of virtual reality.
I think the VR was for that segment of the market that doesn’t even take the car for a test drive before they buy it . And maybe for the younger crowd that thinks VR is close to real reality .
I agree with all the above comments : the statement in the article that ” it’s realistic enough to really get a feel for the car” however is just laughable .
Sounds like a tech executive had a project to work on and reveal to others at a Board Meeting of his peer’s . It’s like a 3D movie at the theater , sure it looks real but still lacks the human experience , touch , smell and sound .
Mr. Szymkowski (and Cadillac) — we’re excited about VR and have strong adoption from dealers.
Perhaps this would help Pinnacle gain dealer buy-in? http://autonews.com/article/20171009/RETAIL03/171009843
I totally agree with you Joe. I must be able to touch and drive and listen to any car that I drive or purchase. For safety reasons I won’t even buy cars that don’t carry a spare.