Cadillac is offering over 40 per cent of its U.S. dealerships pay outs to close down.
Automotive News reports that the brand’s 400 smallest U.S. dealers are being offered up to $180,000 each before Cadillac imposes a selection of new standards across its sales network.
The dealerships being offered these pay outs all sold fewer than 50 vehicles throughout 2015, meaning that while they represent 43 per cent of all U.S. Cadillac dealerships, they only accounted for around 9 per cent of 2015’s sales.
The move comes as Cadillac prepares to implement ‘Project Pinnacle’ on January 1, 2017. The program will drastically alter how the brand distributes incentives to its dealer network based largely around sales volume. The most successful dealers will have to meet strict new guidelines while smaller outlets will have more relaxed guidelines but won’t be able to stock Cadillac vehicles on-site.
Speaking of the move, Cadillac president Johan de Nysschen said “This is going to be a long, arduous and challenging journey and certainly not one for the faint-hearted. Some people may choose to make life a little easier than what lies ahead.”