2010 Cadillac Dts Base Sedan 4-door 4.6l on 2040-cars

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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

GM recalls nearly 340,000 large SUVs to fix daytime running lights

General Motors has initiated a recall campaign for more than 338,000 of its large SUVs to address a potential defect in the onboard computer software that controls the daytime running lights. In some cases, the DRLs may remain on even when the headlights are enabled, which creates additional glare for oncoming drivers at night and fails to comply with federal regulations for headlight performance.  "GM determined that the body control module (BCM) software in these vehicles, under a combination of certain pre-conditions, may fail to deactivate the DRLs when the headlamps are on," GM's recall report said. "A regulatory assessment was conducted to evaluate whether the condition presented a potential noncompliance with the DRL activation requirements in S7.10.5, Table I-a. of FMVSS 108. On October 27, 2022, GM’s Safety Field Action Decision Authority (SFADA) decided to conduct a recall for potential noncompliance with this standard." GM says the recall covers the 2021 model year GMC Yukon and Yukon XL, 2021 Chevrolet Tahoe and Suburban, and 2021 Cadillac Escalade and Escalade ESV. The company says all models produced within that operating window include the improperly programmed body control module, meaning all vehicles within the recall population may exhibit the problem. The issue was discovered by a GM engineer during validation testing in August, prompting a deeper investigation and eventually leading to the recall itself.   The module's software can be updated by GM dealers, so it should be a quick fix for customers. Notifications will be mailed to owners in December.  Related video: Recalls Cadillac Chevrolet GMC Ownership Safety SUV Luxury

GM admits Cadillac ELR no real competition for Tesla Model S

Last year, then-CEO of General Motors, Dan Akerson, made it clear that the company lookouts at the Ren Cen had California automaker Tesla in their sights. "If you want to compete head-to-head with Tesla, and we ultimately will, you want to do it with a Cadillac," he said. So, given the fact that the Cadillac ELR has a plug and sells for roughly the same price at the Tesla Model S ($75,000 vs $69,900, before incentives) and that Cadillac doesn't have any other electric vehicle on the horizon, you'd be forgiven if you thought that the way that Akerson wanted to challenge Tesla's EV success was with the ELR. Well, you'd apparently be wrong. "The ELR is a different car, it's a different price point. It's way-different technology." - GM's Mark Reuss Speaking yesterday in Detroit, GM's head of global product development, Mark Reuss, admitted that the ELR is not the Tesla competitor that Akerson promised. "People like to say the ELR is [competition for the Model S], but it's really not. It's a different car, it's a different price point. It's way-different technology." So, if we follow that logic to conclusion with Akerson's quote from last year, then the only way that Cadillac can eventually compete with Tesla is with a pure electric car, and that seems an outside chance, at best, for the foreseeable future. Through the end of July, Cadillac has sold 578 ELRs since it went on sale earlier this year. Tesla doesn't break out monthly US sales, but has sold 15,114 Model S EVs around the world in the first six months of 2014. For his part, Tesla CEO Elon Musk has already said that GM is headed down the wrong path with plug-in hybrids like the ELR or the Chevy Volt. Speaking about the Volt last year, Musk said, Chevy "sort of created something that's a bit of amphibian," which resulted in a car that's, "Okay but not great."