Despite Cadillac President Johan de Nysschen’s work to streamline the brand’s massive dealership network, many dealers moved fewer than 50 cars for the entire year in 2017.
The Detroit Free Press reported on Tuesday that de Nysschen said half of its dealers reported the minimal sales figures. Cadillac currently operates 924 dealerships across the United States; 463 dealers sold less than 50 cars. The Cadillac President has carefully worked to include smaller dealerships in future plans without overwhelming them with the need for more investments.
The first solution was found in Project Pinnacle, which nearly 100 percent of Cadillac dealers are now enrolled in. The dealership overhaul effort included five tiers—the higher the tier, the more potential for greater bonuses and rewards. However, the fifth tier, reserved for the smallest Cadillac showrooms, was eliminated last October.
The tier called for a virtual reality (VR) showroom to replace physical inventory, which would have kept new investments at a minimum for small dealers. However, the same dealers saw it as a way to squeeze them out of the business. Instead, many dealers have opted to place themselves in higher tiers and make the necessary investments to potentially reap larger rewards.
Cadillac sales dropped 28.6 percent in the United States last December and fell 8 percent year-over-year.
Sales Summary - December 2017 - Cadillac - Global
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