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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

Cadillac Super Cruise needs subscription after free trial period

Not long ago, Motor Trend broke the news that Cadillac's Super Cruise is only free for the first three years, after which the Level 2 autonomy system moves to subscription pricing. MT's report came on the eve of 2018-model-year Cadillac CT6 buyers being asked whether they wished to retain access to their Super Cruise. A few days after that report, Cadillac said it would give those first-year buyers of the technology — "the helpful adopters" — another free year, so they'll need to make a decision in August 2021 along with the 2019MY CT6 buyers. After a bit of digging by other outlets, it seems Motor Trend broke the Super Cruise news primarily to members of the media (including us); the details in the report have been communicated to customers in fine print in at least two places. First, let's clarify that the subscription is for OnStar, not Super Cruise only. Cadillac has made clear since the beginning that the tech needs an active OnStar plan, a Wi-Fi Hotspot, a working electrical system, cell reception, and a GPS signal to work. Knowing that, and knowing OnStar is only free for one month on new vehicles — GM shortened the free trial last year from three or six months — before requiring a subscription, might have encouraged someone to ask the question before now (we didn't...). In response to Jonathan Gitlin at Ars Technica asking Twitter about who knew, Bozi Tatarevic responded, "It might not have been released in the press materials but I remember reading about it in the order guide documents for the CT6 and noting that it was tied to OnStar and would eventually require a plan that started at like $25 per month." And Tatarevic pointed to this snippet in The Philadelphia Inquirer review of the CT6 from 2018: "The Super Cruise feature is part of OnStar and is free for three years. OnStar advertises subscriptions from $24.99 to $59.99 a month." If Super Cruise is only free as long as OnStar is free, then new car buyers now will get the tech for one month. Owners who cancel OnStar or choose a plan that doesn't include Super Cruise will still benefit from adaptive cruise control and lane-centering.   The automaker hasn't said what Super Cruise pricing will be, but the OnStar site apparently reveals the answer. There are six plans listed on the Compare Plans page, but two are combinations of other plans.

Cadillac's de Nysschen takes aim at Porsche 911, Cayenne

Johan de Nysschen has big plans for Cadillac. He's moved the brand from Detroit to New York, revamped its model nomenclature, and planning a raft of new models for the near future – including a $250,000 luxury sedan to take on the likes of Rolls-Royce and Bentley. But the veteran executive of luxury automakers has some more performance-oriented machinery in mind, too. Speaking with Car and Driver at the Los Angeles Auto Show last week, de Nysschen suggested Cadillac could be ready to launch a flagship sports car sometime in the next decade. The halo model would take aim at the Porsche 911 and do for Cadillac what Audi did with the R8, Mercedes is doing with the AMG GT and Acura once did (and is aiming to do again) with the NSX. Just what form it would take remains a big unknown, but de Nysschen indicated that the brand would need to be built up further before the sports car would be launched, lest it emerge too detached from Cadillac's image. The last time Cadillac delved into that territory was with the Corvette-based XLR, of which it sold only 15,000 or so examples – far below initial targets. The 911 rival isn't the only performance model de Nysschen has in mind, however. He plans to further expand the V series into a more substantial sub-brand to include a crossover to take on the likes of the Porsche Cayenne Turbo, BMW X5 M and all those many AMG-tuned Mercedes utilities. The idea of an entry-level model to slot in below the ATS was mooted as well. A range of diesel engines are slated to help Cadillac break into overseas markets in similar fashion to how Maserati has expanded its market reach with oil-burning versions of the Ghibli and Quattroporte. And we wouldn't be surprised to see Cadillac get in on a new flagship SUV being launched by Opel in Europe, either.