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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

GM, UAW poaching Nissan workers in Tennessee

General Motors and the United Auto Workers are going on a recruitment drive at the Spring Hill factory in Tennessee, and they're hoping to poach some skilled workers from Nissan's nearby plant in Smyrna, TN. The General and the union even bought a billboard advertising for industrial electricians near the Japanese automaker's facility, according to the Daily News Journal. The reason for the billboard was simple. "GM was short of electricians," said Tim Stannard, the president of the UAW local at Spring Hill, to the Daily News Journal. The factory currently builds the Chevrolet Equinox but has a contract to assemble the next generation of Ecotec engines and the Cadillac XT5, which replaces the SRX. Thanks to the $185-million deal, employment there is expected to double by May 2016, according to Stannard, with roughly 1,800 additional union jobs. Beyond just several billboards, GM has job postings online for the Spring Hill plant looking for workers with specific skills. There has already been some interest in the positions among Nissan employees, Stannard indicated. According to a recent study by the Center for Automotive Research, the average GM worker currently makes $58 an hour, including benefits. Comparatively, Nissan pays an average of $42 an hour with benefits. The General's number could change in the coming weeks because its contract with the UAW is about to expire, and higher wages are among the major negotiating points.

2020 Cadillac CT5-V, CT4-V to be revealed next week

Even though the ATS-V and CTS-V are on the way out, the future is looking bright for Cadillac's high-performance sub-brand. Why is that? Well we're going to see not one, but two all-new V models on May 30. The company revealed its plans to show the 2020 Cadillac CT5-V and the CT4-V in an announcement about 15 years of the V brand. Not much is known about either car, but both should be wickedly quick based on their predecessors. We're particularly curious as to what engines will be used. With the CT5-V, a return of a supercharged pushrod V8 seems possible considering the CT5 is based on the Alpha platform that also underpins the Camaro. But Cadillac may want to push its more unique powertrains such as the twin-turbo, double-overhead-cam 4.2-liter V8 in the CT6-V. In the CT6-V, it makes 550 horsepower and 627 pound-feet of torque. Cadillac's former CEO said that other cars getting the engine will have it 500 horsepower and 553 pound-feet of torque. We think the company could get away with the full power in the CT5-V, though, since each car's mission and character is different. There's also a slim chance we could see a return of the manual transmission for the midsize sports sedan, based on what a Cadillac engineer said. As for the CT4-V, there are more questions, simply because we haven't even seen the regular version yet except in spy shots. Since the CT5 is built off the Alpha platform, it seems reasonable to think the CT4 will do the same, especially since the ATS also used the platform. And to leave space between the CT5-V and itself, using a hot version of the twin-turbo 3.0-liter V6 seems like the most likely choice. The hot V6 in the ATS-V made 464 horsepower and 445 pound-feet of torque, so we would expect the same. Hopefully Cadillac will offer a manual with it again. One final note from the Cadillac V announcement also got our attention. It said that these two cars are "just the beginning." That seems a pretty obvious sign there are other V models in the works. Since the CT4 and CT5 will round out the company's car line, the logical next choice would probably be crossovers. It will be interesting to see what an XT4-V or XT5-V will be like, especially since they use front-drive platforms. But in the meantime, we'll look forward to Cadillac's hot sedans.