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Cadillac Offering Buyouts to 40 Percent of its Dealerships


hwyman3

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While he hopes there are no defectors, de Nysschen said the buyout plan is intended to give dealers an out should they not want to participate in Cadillac's controversial new Project Pinnacle program. The plan, which goes into effect next year, gives larger stores hefty incentives if they spruce up their dealership with new services.

Cadillac says the program is completely voluntary, but that hasn't stopped dealers from claiming the program is unfair. Offering bigger incentives to the largest stores will allow them to sell their vehicles at lower prices than smaller stores, critics say.

 

 

Welcome to the US and state franchise laws. That program will never make it past the first lawsuit.

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Do they really think customers will travel long distances to buy a Cadillac? The claim is all of those dealers only sell a small percentage of cars, but they probably create a decent amount of buzz for them. What's going to happen when a customer needs service and the nearest dealer is 100 miles away?

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Do they really think customers will travel long distances to buy a Cadillac? The claim is all of those dealers only sell a small percentage of cars, but they probably create a decent amount of buzz for them. What's going to happen when a customer needs service and the nearest dealer is 100 miles away?

 

 

If you can close 400 dealers and only lose 9 percent of sales - who cares? You'll probably save more in overhead than you lose in vehicle profit.

 

I assume a lot of these are co-located with larger dealers so it's not an issue for those.

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Do they really think customers will travel long distances to buy a Cadillac? The claim is all of those dealers only sell a small percentage of cars, but they probably create a decent amount of buzz for them. What's going to happen when a customer needs service and the nearest dealer is 100 miles away?

 

For the most part, people who are affluent enough to buy a luxury car normally are within reasonable driving distance to that said dealership.

 

They don't put a dealership in an area, just because. Where I live, there are two new(er?) Audi dealerships going in...and they are about 30-45 minutes driving from one another, but there is another in the middle of them. If there is a demand to support a dealership, they'll build it.

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That's because everything in Detroit is unnecessarily spread out. This city is the epitome of urban sprawl.

 

 

Lincoln doesn't have a presence in the most affluent areas like Bloomfield, Birmingham, or Rochester which is certainly a strange deal, but in Detroit Lincoln is primarily purchased by Ford employees and retirees so they are typically in older middle-class communities or closer to Dearborn. It would certainly be far more convenient for me if I bought something else like a Caddy, Audi, Mercedes, BMW, Porsche, Land Rover, etc. I typically go to Crest Lincoln which is quite a haul for me (about 45 minutes, longer now that I75 is screwed up for the next 20 years). I don't think I'll be a Lincoln customer next time since I'm aiming for a Tesla but if I do I'll probably check out Troy which is where most people went around here when Crissman closed. And if I wanted to go to a Ford dealership, the only decent one is down the street from Crest.

Edited by BORG
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In North Atlanta I have 3 Lincoln dealers within 20 miles.

South suburbs of Chicago I have four Lincoln dealers within 20 miles.

 

Closest is 3 miles, which unfortunately is now paired with our local Ford dealer, who sucks (I go to/buy from a Ford dealer 15 miles away, that is awesome, but does not have Lincoln) We used to have a separate Lincoln Mercury Dealer, and I always had my Escape serviced there, but they sold out shortly after Ford shuttered Mercury.

 

Also within 10 miles are Acura, Porsche, Honda, Audi, Volvo, Jaguar, Land Rover, Subaru, Hyundai, KIA, Buick/GMC, Cadillac, Chevrolet, Toyota, Lexus, Mercedes/Commercial, Smart, BMW, Mini, Nissan, , Infiniti, Chrysler, Dodge, RAM, Jeep (There's an Alfa/Fiat, but its further), VW, Mazda

Edited by sullynd
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Do they really think customers will travel long distances to buy a Cadillac? The claim is all of those dealers only sell a small percentage of cars, but they probably create a decent amount of buzz for them. What's going to happen when a customer needs service and the nearest dealer is 100 miles away?

.

You would still be able to get it serviced at the Chevy store, but you will not get the "intangibles" at the Cadillac store....foot massages, starbucks, free showers, and a "happy ending" when your car is done....lol

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