These 400 smaller dealers only account for about 9 percent of Cadillac's U.S. sales.

Cadillac will implement strong standards for its dealers moving forward, as the company's Project Pinnacle kicks off in January. And in an effort to ensure that all of its stores are following these new directives, Cadillac is offering buyouts to 400 of its smaller dealers in the United States, according to Automotive News. Yes, that's 43 percent of the brand's dealer network in this country, but they only account for 9 percent of Cadillac's sales.

"Some people may choose to make life a little easier than what lies ahead," Cadillac boss Johan de Nysschen told Automotive News. "This is going to be a long, arduous and challenging journey and certainly not one for the faint-hearted."

The company will offer certain dealers as much as $180,000 to give up their franchise, instead of making a large number of expensive changes as part of Project Pinnacle. De Nysschen told Automotive News the offers start at $100,000 and have a median value of about $120,000. Franchise owners will have until November 21 to decide if they want to take the buyout and wind down by the end of 2017.

As of this week, 474 dealers – or about 83 percent of Cadillac’s sales volume – have enrolled in Project Pinnacle, including 80 stores that were originally eligible for the buyout.

Of course, not all folks are taking this news easily. Dealer associations in California and Virginia, as well as other states, disagree with this plan.

“Every single Cadillac dealer will have the potential to earn significantly higher profits than they do today,” de Nysschen told Automotive News. “I continue to be confident that we have a very feasible, dealer-friendly and customer-friendly program which certainly will be to the benefit of the brand.”


Source: Automotive News