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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 ATS Coupe

Cadillac has become a very, very different company since the dawn of the new millenium. Its turn-of-the-century lineup, consisting of staid offerings like the Seville, DeVille and Eldorado, represented the Old Cadillac. These cars were plagued with Old GM quality issues and catered to a more elderly audience. Since the company's Art and Science design language arrived, though, we've seen Cadillac flesh out its lineup in a big way, introducing notable and (so far) enduring products, like the the CTS, SRX and most recently, the ATS.
With the CTS tackling the 5 Series segment and the SRX duking it out with the Lexus RX and its classmates, the ATS has been left with the tough task of battling the BMW 3 Series, Audi A4 and Mercedes-Benz C-Class, among others. Critically, at least, it has excelled in this role, but it's still working on finding its feet sales-wise. On paper, broadening the model range by adding a two-door personal luxury coupe could help.
After a week with the ATS Coupe, though, we've found a car that, while retaining the standard model's excellent driving character, doesn't quite offer enough visual excitement to stand up to other cars in its segment.

2020 Cadillac XT6 Review & Buying Guide | Sneaking in through the back

The 2020 Cadillac XT6 is arriving late to the party, literally decades after some of its rivals. It's a new, three-row luxury crossover that serves as a much-needed, more-modern and less ostentatious family hauler than the Escalade (which is getting overhauled next year, by the way). The question about the XT6, then, is it fashionably late? The XT6 is indeed quite handsome and refined -- we thought it looked particularly excellent in one our test car's Red Horizon Tintcoat. There's a classic sophistication to it that evokes Cadillacs of the 1960s rather than the overwrought and borderline-tacky designs of other eras (including recent ones). We think the exterior design will age quite well, especially in light of some competitors. However, we're also not sure it's distinctly a Cadillac. Worse, the interior is drab, unimaginative, and blighted with unremarkable materials. A Volvo XC90 and Lincoln Aviator instantly look and feel more special, while a range-topping Hyundai Palisade isn't as far behind as the price gap would indicate. The driving experience also leaves something to be desired. Besides the ho-hum engine, the XT6 has neither the sharp handling of Cadillac's recent sedans nor the stately ride comfort one also might expect given the brand's past. Overall, the XT6 sneaks in through the back of the party rather than making a grand entrance; an unremarkable effort in a toughly contested segment. What's new for 2020? The XT6 is an all-new model and fills a gap in Cadillac's lineup. What's the XT6's interior and in-car technology like? Answering this question is all about perspective. In a vacuum, the XT6 interior seems nicely put together, its leather is soft and features are in abundance. The range-topping trim's gold carbon fiber trim is particularly interesting. If you sat in one after a Buick Enclave, the step up would be obvious. However, come from a Lincoln Aviator or Volvo XC90, to cite two excellent examples of the breed, and the difference is stark in terms of design and materials quality (there are too many hard plastics throughout). The XT6 quite simply isn't as cool, isn't as luxurious and doesn't seem to justify its price tag. At least features content is strong with six USB ports, wireless charging, Android Auto, Apple CarPlay and satellite radio all included along with a panoramic sunroof and various driver assistance technologies. Other brands nickel-and-dime you with this sort of content.