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Nearly Every Cadillac Dealership Agrees to the Automaker’s New Incentive Program

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Close to 100 percent of Cadillac dealerships agreed to the company’s new Project Pinnacle incentive program

Cadillac is still offering smaller dealerships the chance to opt out of the program by Nov. 21
Photo: © General Motors

Approximately two weeks ago, Cadillac made headlines when it offered to buy out 400 of its smallest dealerships if they didn’t want to sign up for the company’s new Project Pinnacle incentive program, but despite receiving some initial pushback from dealerships, almost every one of Cadillac’s 925 dealerships across the US signed up for the much-talked-about program.

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According to a report from Automotive News, dealerships that accounted for 98.7% of the automaker’s sales volume signed up for Project Pinnacle. Cadillac’s Vice President of Sales Operations Dan Creed characterized the dealerships that didn’t sign up for the program as “very small stores” that together only sell around 150 Cadillac models per month.

Project Pinnacle will divide dealerships into four unique tiers based on sales volume, with each tier being offered its own incentives for reaching distinct sales targets. The higher tiers are able to earn higher rewards from Cadillac, but they also face more rigid standards. In addition, dealerships that sell less than 100 vehicles a year can join a fifth tier, which would only cost $250 in enrollment fees compared to $35,000 for the highest level. However, the fifth tier would forbid dealerships from keeping Cadillac models on its lots. This means consumers could only order Cadillac cars, crossovers, and SUVs from these fifth tier dealerships via “virtual showroom” technology.

While Creed did tell Automotive News that some dealerships selected the fifth tier option, he also told the publication that more than half of the dealerships selected a tier that would place it at least one level above what its current sales numbers would suggest.

The Project Pinnacle incentive program goes into effect starting January 1st, but Cadillac is still giving its 400 smallest dealerships the chance to opt out of the program by November 21st. Those dealerships that decide to opt out will still be eligible for a buyout that could be as much as $180,000.

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