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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's Mark Reuss explains why a performance Cadillac ELR-V won't happen

Hey, I've got enough things to worry about. That's one interpretation of General Motors executive vice president Mark Reuss' response to a question posed by Driving the Nation about the recently-introduced Cadillac ELR plug-in hybrid. Reuss said GM will "definitely expand the tuning envelope" for the ELR. The question was whether GM would consider adding magnetic ride control to the quite-powerful-for-a-plug-in Caddy, creating an "ELR-V" model in the process. Reuss' non-answer: "Good question, can't really answer that," but then elaborated that magnetic ride control uses up "a lot" of power otherwise spoken for in terms of providing the longest electric-only range possible. Interestingly, he did add that GM will "definitely expand the tuning envelope" for the ELR, as you can see in the video below. With the model retailing for north of $75,000, fewer than 60 percent of US Cadillac dealers were carrying the ELR as of last month and just 99 ELRs were sold during the first two months of the year. In an effort to sell more vehicles, GM said in January that it would offer the ELR for a 39-month lease for $699 a month for qualified lessees and with a $5,999 down-payment required. Autoblog's First Drive impressions of the ELR can be found here.

Economy-car buyers increasingly get the best deal on technology

One of the great things about technology is – with the exception of Apple products – consumers get more for their money every year. For example, the first 1GB USB drive I bought in 2005 cost me $30. Today you can get 10 for that price, delivered to your door thanks to Amazon. The same goes for car tech. Features such as navigation and Bluetooth started out on high-end vehicles before trickling down to entry-level cars. Same with driver assist features ranging from rearview cameras to forward collision warning with automatic emergency braking — so now it's not only rich people who are protected in car crashes. I've found that this democratization of tech has reached a point where amenities on low-cost cars can be as good — and sometimes even better — than those on vehicles costing tens of thousands of dollars more. While attending a media event for the launch of the all-new 2019 Toyota Corolla Hatchback, I was impressed by the car's cool styling and go-kart performance. Equally noteworthy is the amount of standard tech on the low-cost hot hatch. (Pricing will be announced later this month, but expect it to come in a bit higher that the current Corolla iM's roughly $19,000 base.) Even the base SE CVT trim of the 2019 Corolla Hatchback comes with an 8-inch touchscreen and Toyota's Entune 3.0 infotainment system. Among other features, Entune 3.0 provides Wi-Fi capability, Amazon Alexa connectivity, the Entune App Suite for integration of smartphone apps such as Pandora and Yelp and, for the first time in a Toyota, Apple CarPlay (but no Android Auto). The 2019 Corolla Hatchback is also the first North American vehicle to get the second-generation Toyota Safety Sense (TSS) suite of driver assists that's also standard on the base model. TSS 2.0 includes Toyota's Pre-Collision System (forward collision warning with automatic emergency braking) with new daytime and low-light pedestrian detection and daytime cyclist detection features, lane keeping and lane departure alert with steering assist, auto high beams, adaptive cruise control, and road sign detection. While the 2019 Corolla Hatchback sets a new benchmark in standard tech on a budget-mobile, competing cars aren't far behind. The 2018 Honda Fit LX, for example, includes forward collision warning with automatic emergency braking, lane departure warning and assist and adaptive cruise, while the automaker's Lane Departure Mitigation and Lane Watch camera system is added the two top trims.