1970 Cadillac Eldorado Base Hardtop 2-door 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

[UPDATE] Cadillac Blackwing gets ticket to Italy, to go to work in a supercar

UPDATE: It seems MAT's belief it had secured a supply of Cadillac's 4.2-liter Blackwing V8 was premature, and based on a handshake deal before GM sold its Turin engine center to Italy's Punch Group. Shortly after Hagerty ran the story, GM sent a statement to the outlet reading, in part, "We do not have an agreement in place with Manifattura Automobili Torino (MAT) to provide or sell the Blackwing engine. ... Our team is following up with MAT president Paolo Garella to discuss the misunderstanding." MAT also submitted a statement to Hagerty, saying, in part, "We thank GM for the clarification. Although a signed agreement was not finalized between the parties, we were under the impression that our counterpart was committing to making this engine available to MAT at conditions yet to be defined. ... We hope that this misunderstanding will not compromise our relations with GM and possible future collaborations." The original article follows: Some necessary cost-cutting at Cadillac led to switching the new CT4, CT5, and Escalade to older platforms. The revised architecture plan meant Cadillac's newest top-tier products couldn't fit Cadillac's newest top-tier engine, the 4.2-liter twin-turbo DOHC V8 known as Blackwing. That engine would serve limited duty at full power in the now-dead CT6-V, and at reduced output in the CT6 Platinum V8 trim before ending its bright, brief domestic life. But the story isn't over, the rebirth of Blackwing coming from a most surprising locale: Turin, Italy. Before the canceled Geneva Motor Show, Hagerty spoke to Paolo Garella, CEO of Manifattura Automobili Torino; that's the company better known as MAT, makers of the New Stratos and contract engineering house for boutique screamers like the Aspark Owl electric hypercar, Apollo Intensa Emozione, and SCG003C. Garella told the outlet, "We have an agreement with General Motors" for a supply of Blackwings, which would be developed and built at the General Motors Propulsion Engineering Center (PEC) in Turin. Since 2005, the PEC has been used to develop GM's global diesel engines and electronics. MAT's plan is to put the V8 into a new limited-run car MAT is creating from its own design. Then another surprising turn: Belgium-based global auto supplier Punch Group bought the PEC, with plans to work with GM on projects in progress until at least the end of 2021. Nothing changes as far as MAT is concerned, except perhaps a chance for an even closer collaboration with Punch Turin.

Cadillac CTS-V and Suzuki e-Survivor | Autoblog Podcast #527

This week, Editor-in-Chief Greg Migliore is joined by General Manager Adam Morath. They discuss driving the Cadillac CTS-V and talk about the Suzuki e-Survivor concept. Other news includes possible Jaguar Land Rover acquisitions, the Jeep Grand Cherokee Trackhawk and the Autoblog Car Finder. Autoblog Podcast #527 Your browser does not support the audio element. 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 Topics and stories we mention Rundown Jaguar Land Rover acquisitions? Suzuki e-Survivor concept Tesla Model 3 Autoblog Car Finder tool Jeep Grand Cherokee Trackhawk Cadillac CTS-V What we've been driving: Jaguar F-Pace Ken Block's "Climbkhana" Spend my money Feedback Email – Podcast at Autoblog dot com Review the show on iTunes Green Podcasts Cadillac Jaguar Jeep Suzuki Electric Performance Videos Sedan jaguar land rover