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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 Oscars ad shows none of its cars or trucks

Can you sell something without actually showing the product in an ad? While this sounds like a question that Don Draper might have, Cadillac apparently thinks it's possible with at least one of the brand's three upcoming Oscars commercial. Days after whiting-out the company's social media presence in preparation for the new campaign, some of the advertising is finally here. Titled Dare Greatly, the first released spot goes for a stripped down, minimalist aesthetic. The entire piece is made up of voiceover and ambient noise set over slow-motion driving shots of New York City. Viewers catch a few out-of-focus glances at a Cadillac interior, but otherwise the only vehicles in the commercial are the ones parked along the street. The speech that is the centerpiece of the ad is all about the glory in just making an attempt, rather than criticizing others. "There is no effort without error and shortcoming," it says at one point. According to The Detroit Free Press, the text comes from a lecture by Teddy Roosevelt in 1910 at the Sorbonne in Paris. Cadillac's commercial never actually attributes the words to the former president, but the company is playing up the connection on social media. The full 1:30 version of the spot is already streaming online, but Cadillac is cutting the commercial into 30-second and 60-second versions to air during the Oscars, according to The Detroit Free Press. Of the brand's two other ads during the awards show, at least one of them shows the company's vehicles.

2020 Cadillac XT4 Sport Drivers' Notes | Worth a look, or two

The 2020 Cadillac XT4 is Cadillac’s smallest crossover in its burgeoning lineup of SUVs. Most of the attention is on the new Escalade these days, but the XT4 is where someone with a lighter budget might enter the Cadillac brand. Our tester happens to be the Sport model, giving it a distinctive appearance, separate from the Luxury and Premium Luxury trims. This one has a gloss black mesh grille, black trim throughout the exterior and Sport-specific wheels — the others rely much more heavily on chrome. Cadillac stepped it up in the design studio for the XT4, as one of its best qualities is the exterior design. It compares well to other small crossovers and doesn't look like your typical cookie-cutter crossover on the road. ThereÂ’s only one engine available, and itÂ’s a 2.0-liter turbocharged four-cylinder that makes 237 horsepower and 258 pound-feet of torque. When the XT4 came out for the 2019 model year, this engine was brand new. Today, Cadillac is passing it around the lineup to vehicles like the CT5 and CT4. A nine-speed automatic transmission is the only transmission option, as well. Our tester has all-wheel drive, but front-wheel drive is standard on lesser XT4s. There isnÂ’t a whole lot changed for the 2020 model year, but Cadillac did add an “Off Road” mode and made a bunch of safety equipment standard. With our test car being a Sport trim with all-wheel drive equipped, the base price is $42,295, a fair bit greater than the $36,690 standard car. After options, our XT4 totaled $48,310. The most expensive extra is a $1,500 Bose Centerpoint audio system, combined with navigation. An $1,100 Driver Assistance package brought adaptive cruise control, enhanced automatic emergency braking and reverse automatic emergency braking. A Cold Weather package added heated seats all around and a heated steering wheel for $850. Finally, the $470 Driver Awareness package brought automatic high beams and lane-keep assist. Senior Editor, Green John Beltz Snyder: This one grew on me the more I drove it. I was unconvinced for the first part of my drive, but then things started to feel more well-though-out as I used them. For instance, the line of buttons across the center stack looks daunting, until you turn the car on and their labels are illuminated. Then everything is easy to find thanks to the lighting, symmetry and the fact that you only have to look down a single line of buttons rather than hunt around a grid pattern.