2014 Cadillac Cts Luxury Rwd 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 to fight Audi A3, Mercedes CLA with small rear-drive sedan?

Compact luxury sedans are fast becoming the trend among upscale automakers. Mercedes has the new CLA (and its many platform-mates), BMW has the 1 Series and 2 Series, Audi has the A3 and, though Lexus apparently isn't interested in anything smaller than its CT 200h, Infiniti is getting in on the action with a compact model of its own. It would only follow logically, then, that Cadillac should launch a competitor, and according to the latest reports, that's just what it has in store.
Speaking with Car and Driver, Cadillac marketing chief Uwe Ellinghaus confirmed that such a project is in the works. But unlike its rivals, Cadillac aims to go with a rear-wheel-drive layout. This despite research that apparently indicates that a surprising 80 percent of owners think that their BMW 1 Series is front-drive. It's the driving dynamics and styling proportions that motivate Ellinghaus and his colleagues to stick with rear-drive, however.
The new model would in all likelihood be based on the same GM Alpha architecture that underpins the ATS and CTS - a platform that has helped Cadillac keep the weight down on both models and which is expected to underpin the next-generation Chevy Camaro, as well. The sub-ATS could be positioned as a four-door 2+2, however, as the ATS grows a little larger in its next iteration in order to make room for its new baby brother.

Ford Edge ST and Mercedes-AMG E 53 | Autoblog Podcast #557

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Associate Editor Reese Counts. They talk about driving the Cadillac Escalade, Mercedes-AMG E 53 Coupe and Ford Edge ST. Then they run down the news: Lexus LFA prototype spy shots and the Buick Cascada's death knell. Then Green Editor John Beltz Snyder crashes the studio to talk about reducing your carbon footprint. Finally, the fellas help spend a listener's hard-earned money on a new car.Autoblog Podcast #557 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving: Cadillac Escalade and Mercedes-AMG E 53 Coupe First drive of the Ford Edge ST Lexus LFA prototype spied at the Nurburgring with new body work Buick Cascada at death's door? Climate change sucks, but it doesn't have to Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Green Podcasts Buick Cadillac Ford Lexus Mercedes-Benz Car Buying Used Car Buying Convertible Coupe Crossover SUV Luxury Performance lexus lfa buick cascada