2006 Cadillac Escalade Ext Crew Cab Pickup 4-door 6.0l 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

Cadillac could base its entry-level sedan on the Chevy Cruze [UPDATE]

UPDATE: Cadillac spokesperson Donny Nordlicht tells Autoblog , "The post speculating on a future Cadillac model derived from the Chevrolet Cruze is completely false." Premium automakers Mercedes-Benz and Audi have seen plenty of success with new small front-drive-based sedans. The CLA-Class had its best January ever this year, while Audi moved more of its new A3 in 2015 than its predecessor sold in 2005 through 2010 combined. The fact that Cadillac wants a piece of that pie is no surprise, then. There's a new rumor that GM's luxury brand could launch its own compact – possibly called CT2 – to battle the Germans. Cadillac, a brand that's pushed hard to rebuild its rear-drive reputation, could develop a new entry-level model based on the front-wheel-drive 2016 Chevrolet Cruze's D2XX platform. Go ahead and make your Cimarron jokes. Sources are telling GM Inside News that a Cadillac built on the Delta platform would ditch the Cruze's turbocharged 1.4-liter four-cylinder for a 1.5-liter turbo in base models. General Motors' well received 2.0-liter turbo four would serve in higher-end models. According to GMIN, the Delta-based Cadillac would likely command a $6,000 to $9,000 premium over the Cruze, so figure $23,000 to $26,000 on the low end to $30,000 to $33,000 for something at the top of the range. As much as we dislike the kind of badge engineering that brought us the Cavalier-based Cadillac Cimarron in the '80s, the company has done an admirable job of distinguishing vehicles on shared platforms lately. A Delta-platform Cadillac would at least have a good basis – the new Cruze is surprisingly comfy. That said, we question GM's rationale if this rumor is indeed true. Put simply, Cadillac needs another sedan like I need another student loan payment. The company has four sedans, three of which overlap two segments, and none of which are selling very well. That's not because they're bad, but because customers want crossovers, of which Caddy has but one – the new XT5. Spending the time and money to add a fifth sedan to the mix when the company desperately needs to flesh out its CUV range would be a tremendous mistake. As much as we hate to say it, if Cadillac really wants to add a small, entry-level car to its range, it'd better be a crossover. Related Video:

GM pauses 3.0-liter turbodiesel production due to a supplier shortage

General Motors confirmed it has temporarily stopped taking orders for trucks and SUVs equipped with the 3.0-liter Duramax turbodiesel six-cylinder engine. It blamed the last-minute pause on a supplier-related shortage. Website TFL Truck first reported the news, and a representative from General Motors quickly confirmed it. The spokesperson explained the issue is due to a "temporary part shortage" and added that production will resume "as soon as possible," meaning the Duramax engine (which is called LM2 internally) is not going away permanently. Additional details are not available, so we don't know if the issue is related to the ongoing chip shortage. Rather than delay deliveries and create a backlog, General Motors is reportedly asking its dealers to encourage buyers who want a turbodiesel engine to instead select either the 5.3-liter V8 or the 6.2-liter V8, depending on the model selected. Both are gasoline-powered units. There's no word yet on when Duramax production will resume. The shortage affects several models, including Chevrolet's Tahoe, Suburban, and Silverado 1500 and GMC's variants of these trucks. Cadillac's Escalade is temporarily diesel-less as well. Heavy Duty variants of the Silverado and the Sierra are not affected because they're powered by a different Duramax engine with eight cylinders. Motorists seeking a full-size SUV powered by an efficient turbodiesel engine are temporarily out of options because the Tahoe/Yukon and the Suburban/Yukon XL had the segment to themselves. The Duramax was surprisingly popular, too: in May 2021, GM Authority reported that the turbodiesel straight-six represented 8% of Suburban sales and 6% of Tahoe sales. Installed in a rear-wheel-drive Tahoe, the engine returns 21 mpg in the city, 28 mpg on the highway, and 24 mpg in a combined cycle, figures that make the body-on-frame behemoth more efficient than the unibody, front-wheel-drive Chevrolet Blazer that's 20 inches shorter and approximately 1,700 pounds lighter. Related video: 2021 Chevrolet Tahoe 3.0L Duramax engine