By on November 30, 2015

2017 Cadillac XT5 luxury crossover

With the CT6 and XT5 hitting the floor soon, Cadillac is working on a new dealer incentive program to encourage improvement of the buying experience at its stores.

Automotive News reports the program could bring as much as $850 million to $1 billion USD “in incremental profit” for the brand’s dealership network over the next four to five years, according to president Johan de Nysschen:

If we want to have a strong brand, we need to have a strong franchise. To do that, it means the dealers are profitable and that they’re able to invest in the business and to build the customer experience.

The program, set to be announced at Cadillac’s national dealers meeting in February 2016, will emphasize performance over volume, encouraging greater investment in new technology, store overhauls, and other consumer-focused actions. It will also replace two current dealer incentive programs, which pay quarterly bonuses for boosting sales and meeting customer-service targets. The program will also help with the cost defrayment for dealership renovations.

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39 Comments on “Cadillac Drafting New Dealer Incentive Program...”

  • avatar

    That Serbian hit man is chasing the poor skinny chick again!

  • avatar

    Bring on that $35,000 XT5 and let the dealers line up.

  • avatar

    Nice work Cameron. I’m starting to wonder if Cadillac has finally taken its head from its rear and is embracing a volume focused strategy as opposed to the half-assed one where we sell so so volume models at high prices.

  • avatar

    Can they incentivize the service end of Cadillac? I was considering a CTS earlier this year but read numerous stories of bad experiences at the other end of the dealerships.

  • avatar

    “Stack ’em deep & move ’em cheap!”

    New, real, non-figure head boss of Cadillac (who remains anonymous) brought in by The Bobs to oversee and try to salvage the FUBAR mess that is called the Cadillac brand/badge/division in the wake of Johann’s, Uwe “Pen Boy’s,” and Melody CT-Lee’s tortuous tenure.

    All ATSs $249/month

    All CTSs $289/month

    All SRXs $299/month

    All XTSs $309/month

    The All New CT5 $319/month

    The All New CT6 $329/month

    No credit denied. Everyone approved. You drive?, you RIDE!

    *Any future “The Arena” speech commercial narrated by anonymous millennial chick have been scrubbed from history as will any record of ad firm Public School House rigging up & flying a XT5 by helicopter & bungee cords across Manhattan.

    • 0 avatar

      That commercial will still be better than The Hunger Games RAM commercials I sat thru while watching football on Saturday.

      • 0 avatar

        Aw geez, there’s Ram commercials too? My family and I saw a Dodge Hunger Games tie-in commercial on our way home yesterday (no TV over the weekend at the cabin, only DVDs), and after seeing the last movie on Friday, we all agreed that there were few tie-ins that could be worse.

        • 0 avatar

          Yep. It was terrible. FCA also “collaborated” with hip artists from the American Music Awards last week. The FCA CMO said that he did it because, “It’s a way to return the favor, to fuel music, because music fuels our brands with relevance, freshness, and coolness.” Terrible. No amount of autotune will make a 500X cool.

      • 0 avatar

        Those commercials make me less interested in FCA products. It screams “We couldn’t pay for a 30 second spot by ourselves, so we split the bill”

        Not inspiring confidence in the least….

    • 0 avatar

      A CT6 for $329? I might even be interested myself.

  • avatar

    Panther FTW!

  • avatar
    Steve Lynch

    Until Caddy cuts its current number of dealers from 928 down to 300 – 400 like the competition and make them 100% exclusive – no more Escalades parked next to Volts – then no amount of trunk money/incentive money/performance money will fix their brand image issue.

    Perhaps some of this dough needs to go to pay off some dealers to go away, as state laws basically prohibit manufacturers from terminating dealers.

    • 0 avatar
      SCE to AUX

      +1. That really shows how little GM respects Cadillac and its customers.

      • 0 avatar

        “BMW or Mercedes-Benz, which have two-thirds fewer stores, mostly in urban locales, outsell the average Cadillac store by nearly 5-to-1.”

        Johann is a huge con man. It’s incredible (or maybe not, given GM’s incompetence) that he has the incompetent Mary Barra agreeing to give him 12 billion for Cadillac, which equals 33% of GM’s total development budget across all brands, yet Cadillac vehicles represent 1 in 20 GM vehicles sold (5% of GM total units), through 2020.

        And now each fraudulent utterance/claim by Johann is revealed for the fraud it is and was when made:

        1) We can price like Audi, BMW and Mercedes!

        No…no, you can’t, and this was just conceded.

        2) We can move more units by emulating what used to be sporty, smaller BMWs and Audis, and charge higher prices for them, while matching their prestige and quality!

        No. No. And no.

        3) We will whittle down Cadillac’s dealerships from just under 1,000 to closer to 350, and sell 3x the Cadillacs per dealership (matching Audi, BMW and Audi sales volume per dealer) as we do now!

        No. You can’t. And this volume push based on dealer incentives to move more metal as a basis to earn more incentive dollars reverses yet another former Johann mission statement bulletin point.

        4) Cadillac will quickly catch up to Audi, BMW, and Mercedes on the desirability scale if they implement the Johann vision!

        Nope. Cadillac can’t even match Lexus, Infinity, or – Yikes!, Acura, on the desirability scale.

        Cadillac under Johann, Pen Boy Uwe, and Millennial Melody CT-Lee is in worse shape now than ever, with Escalade sales literally keeping the lights on.

        • 0 avatar

          So what can Cadillac do, other than resign itself to being a distaff counterpart of Buick (which seemed to be Lincoln’s game plan until recently)?

          • 0 avatar

            Break off Escalade as its own brand and create a range of CUVs and SUVs people will actually buy. A Cadillac answer to the Evoque, Q5/X3 and Range Rover Sport/X5 would handily and much more profitably outsell Caddy’s 20 year late answer to the Germans. Cadillac itself could consolidate and hone its focus on tech and prestige… some loss leading halo cars like a real S Class fighter, a sports car and a return to the old CTS mission would probably be enough.

            Anyone with a brain can see that sedans are dying a slow death. The whole midsize luxury sedan segment is down 18% in the US over last year and the small/compact luxury segment is buoyed by new releases (A3, TLX, C Class). By contrast small and midsize luxury SUVs are up by a good clip almost across the board. If Cadillac wants to make money it has to move into the segments of growth QUICKLY….

          • 0 avatar

            1)Ignore BMW and Audi.Mercedes Benz is the German company they should have as their target.
            The Cadillac brand used to mean luxury,a ‘you’ve made it” attitude. Trying to re-brand as an American Ultimate Driving Machine is doomed to failure no matter how good their cars actually are on the road.No one besides auto journalists believe in Cadillac as a sports car brand.
            Return to what brung ya and go back to being a luxury,status brand.

            2)EVERY Caddy should sit 4 normal Americans in total comfort. Everyone who sits in one should be impressed by ride quality.Quality interior w/no bin parts to mar the interior.
            Easy to use info system,that can be upgraded,re-programmed either over air or at dealership.

            3)Split GM into 3 manufacturing Divisions.
            Chevy,Trucks and Cadillac/Buick.
            Chevy’s target should be Toyota/Honda for reliability.
            Cadillac and Buick share platforms for scale,w/Caddy getting smooth ride,luxurious interiors and opulent seating,while Buick benchmarks Audi and BMW.

  • avatar
    Kyree S. Williams

    That’s fine and all, but automakers should realize that it’s worthwhile to just engineer thoughtful user experiences from the start, and to make infotainment systems that can be updated if they turn out to be software nightmares. So before the company adds all of this “new technology,” Cadilac needs to truly consider how to integrate it in a manner that won’t make it cumbersome and lower customer satisfaction.

  • avatar

    is this an advertisement for Cadillac or an advertisement for women to get their CCL and a Glock? Because that guy has stalker written all over him.

  • avatar

    cut sales executives and costs, get the hell out of retail and let the dealers do what they do best. then Caddy has a chance…oh and go back to real names, no one aspires to alpha numerics.

    • 0 avatar

      And Cadillac returns to its reason to exist; producing bold, plush, roomy, V8 powered LUXURY VEHICLES (not facsimiles of BMWs or other such nonsense).

      • 0 avatar

        No one cares about having named models or about having V8s in a non-performance luxury car, despite what the people stuck in the past among this commentary think.

        Mercedes just killed off their non-AMG V8 E-class sedan for 2016.

  • avatar

    In case we haven’t beaten the dead or dying horse quite enough in previous Cadillac threads, Cadillac needs to make cars for customers who want Cadillacs, not Audis/Benzes/Lexi. That means a solid, comfortable car with lots of passenger and cargo room, and please make it FEEL like a big car when you drive it. That does not necessarily mean it has to BE big, just DRIVE big.
    Add to this the dealer service that Toyota gives its customers in downtown Tokyo. And charge what you have to for it.
    Formula for SUCCESS !

  • avatar

    Does she come with the Cadillac and does she like her hair pulled?

    (sorry couldn’t help myself)

  • avatar

    Nice headlights.

  • avatar

    Paging “edgy urban hipsters”!

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