Cadillac’s New Dealer-Compensation Project Moves Onward

Why does Project Pinnacle worry auto dealers?

Cadillac is moving forward with its Project Pinnacle program, despite pushback from dealers. Pinnacle is scheduled to launch April 1, and many are worried that it is a way to eliminate dealers. Cadillac rejected these claims, stating that the intent of the system is to introduce brand standards to increase customer experience and compensate dealers who meet brand expectations.

Cadillac has taken into consideration the size of dealerships and developed tiers of standards. The standards will focus on the customer experience in both sales and service departments. Small dealers are encouraged to make an effort to comply with the Tier 1 standards, where they will have access to the full compensation bonus, but it will not be required. On the contrary, Cadillac will try to prevent Tier 1 dealerships from going the other way. This brings into question if the tiered compensation violates state franchise laws prohibiting discriminatory per car incentive programs. The alternative would be to make it mandatory for all dealers to follow the Tier 1 standards.

Read the full WardsAuto article.

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