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Why Cadillac is willing to lose 43 percent of its dealers

Cadillac is offering about 400 dealers in the United States a lump sum of money to close down. That represents over 40 percent of Cadillac dealers in America. Offers start at $100,000 and top out at $180,000. The average offering is around $120,000. According to Automotive News, Cadillac chief Johan De Nysschen estimates it will cost the automaker around $50 million to close these dealers. Any dealer that chooses to remain open will have to submit to Cadillac's ambitious Project Pinnacle, which will divide dealers into incentive categories based on how many units they sell. "Every single Cadillac dealer will have the potential to earn significantly higher profits than they do today," says De Nysschen. Dealers have until November 21 to decide if they want to take the cash or submit to Project Pinnacle. A logical question: Why is Cadillac willing to spend $50 million to close down 43 percent of its dealers? First, GM's luxury brand has way more dealerships than it needs. Second, the 400 dealers with offers to shutter each sold 50 or fewer vehicles in 2015, representing just 9 percent of its sales volume in America. So, while closing these smaller dealerships may have a small initial impact on sales, it's not going to be a major hit to Cadillac. Related Video: News Source: Automotive News - sub. req.Image Credit: Gary Cameron / Reuters Cadillac Car Dealers Luxury Performance

2015 Cadillac Escalade

Cadillac has been an interesting story in the auto industry over the past several years. Its comeback bid may be well over a decade old, but it's only recently that the Wreath and Crest has transformed from the auto industry's retirement home into its hot new thing. Today's Cadillac is a powerful marque working to instill passionate design, sound driving dynamics and cutting-edge technology into each model it builds, with vehicles like the ATS and redesigned CTS leading the charge.
Now, its latest model has arrived. This fourth-generation Escalade is among the most important new Cadillacs since the division's renaissance kicked into high gear. It's the brand's de facto flagship, and the first vehicle many young people think of when hearing the name "Cadillac." In the past, the Escalade was the chosen vehicle of the rich, flashy and famous. It's suffered over the past few years, though, particularly as new and more luxurious competitors have come to the fore.
With this latest redesign, General Motors is aiming to retake the spotlight as purveyors of the market's premier luxury SUV. To find out if it's been successful, I ventured down to the South Carolina Lowcountry to test the all-new 2015 Escalade.

Cadillac XT5, XT6, GMC Acadia recalled for two issues

General Motors is recalling three model years of the Cadillac XT5 and XT6, and the Cadillac's GMC sibling, the Acadia. The first recall has to do with the rearview camera. On 2020- and 2021-model-year XT5s, XT6s, and Acadias optioned with Surround Vision, insufficient crimping for the coaxial cables could cause a degraded signal from the rear camera, or cause the signal to fail. With all passenger vehicles required to have a working rearview camera, that's not an ideal situation. Only crossovers with Surround Vision are affected. The population at issue counts 95,231 vehicles, build dates being: XT5s produced from May 1, 2019 to June 23, 2021 XT6s built from February 25, 2019 to June 24, 2021 Acadias built from May 6, 2019 to June 24, 2021  The automaker hasn't been informed of any crashes or injuries related to the problem, and will begin mailing letters notifying owners of the issue on November 7. The fix is a trip to the dealer to have the cables inspected and replaced if necessary. Concerned customers can contact Cadillac customer service at 800-458-8006 or GMC customer service at 1-800-462-8782, then refer to GM's recall number, N222378380. Alternatively, they can get in touch with the National Highway Traffic Safety Administration (NHTSA) Safety Hotline at 888-327-4236 (TTY 800-424-9153), or go to www.nhtsa.gov, and refer to campaign number 22V709000. Another recall concerns just the 2023 Cadillac XT5 and XT6 and 2023 GMC Acadia units that were built on August 9, 2022. That day, a printer in the Spring Hill, Tennessee, Assembly Plant malfunctioned, producing vehicle labels for the driver's side B-pillar with illegible tire size information. That's a violation of a subsection of Federal Motor Vehicle Safety Standard No. 110. Only 24 units are affected, the fix being a jaunt to the dealer for a label with readable information. Owners who don't want to wait until November for letters from GM can contact Cadillac customer service at 800-458-8006 or GMC customer service at 800-462-8782, and mention recall number N222381690. Or they can head to the NHTSA Safety Hotline at 888-327-4236 (TTY 800-424-9153), or www.nhtsa.gov, and refer to campaign number 22V708000.