Cadillac: Affordability a bigger concern than inventory

How have Cadillac’s sales incentives changed during this time of declining production and inventories?

We haven’t really needed it so far, but I think we’ll need it going forward as demand calms down a bit, production increases, and interest rates rise. We will definitely see more leasing support from manufacturers, not just Cadillac.

Is Cadillac properly advising and resourced dealers on how to prepare for the rollout of electric vehicles?

I think Cadillac and GM are doing a great job. We are far ahead of other manufacturers when it comes to charger installation and training. Lyriq’s training was great. Both the sales staff and the manager liked it. The training was great.

Is Cadillac currently or in the future imposing new requirements or sales standards related to the sale of electric vehicles? If so, how do dealers feel about having a different set of policies?

must be trained. you must have a charger.

One thing Cadillac did was very clear. Dealers unwilling to meet that demand were bought out. Dealers who belong to the brand know what the requirements are. I think it really helped the whole process that Cadillac showed us this kind of clarity from the beginning.

What is Cadillac’s position on subscription services for features that are built into the vehicle or that can be activated using software after purchase? do you

Just want to be clear on that, all of these conversations are in the very early stages.

Indeed, all indications we’ve gotten from manufacturers are that dealers are playing a role. These communications are very clear and very open with Cadillac and General Motors.

For example I [Chevrolet] Bolt, and the other day you said you could go to your radio and press this button to download the navigation system.

My Volt didn’t have a navigation system. Then I turned on the radio, sure, I had to press this button I agreed to everything. All of a sudden you have a navigation system. So I think it’s going to be a big one. General Motors really wants dealers to play a role in that.

What is Cadillac’s position on over-the-air updates for service vehicles?

I think it’s still early days.

What do Cadillac dealers think about potential changes to the traditional franchise model?

At this point, what we’re hearing from the manufacturers and their thought process is that they want to stick with the dealer network. Obviously some minor changes are planned. Margins and all that stuff. I don’t think dealers are too concerned at this point.

What are Cadillac’s plans to boost leasing in 2023 after leasing declines across the industry?

Leasing is a very important part for luxury brands. Yes, it is declining due to inventory shortages, but I think we have come to the point where some sort of leasing is absolutely necessary. And they already have some leasing support, but what level it has to go to is currently being decided as we speak. Between Dealer Council and the Cadillac team There is much discussion on. A lot of discussion and a lot of time is spent on it.

How are rising interest rates affecting new or used car sales and financing at Cadillac dealerships?

It hasn’t had much of an impact so far, but if interest rates continue to rise there will definitely be some impact.

What can Cadillac and General Motors’ lending arm do to help dealers sell cars in the face of rising interest rates?

I’m sure there’s support for leasing, support for interest rates if interest rates rise and cause concern. Cadillac offers fixed interest rate support on certain vehicles. This has been very, very, very closely monitored.

Will current used car market conditions require dealers to revise the strategies they used in 2021 when it comes to acquiring and selling used cars?

yes. And what that strategy is, no one knows yet. we’re trying to figure it out. These are the conversations we have every day.

If dealers reduced their reliance on wholesale auctions last year and prioritized other buying channels, are they now returning to auctions for cheaper inventory?

Yeah, I think auctions are always there. Auction sales have been turned off due to a slight shortage of inventory, but auctions are an important part of our overall business process.

We never left the auction.

Will dealers continue to maintain new procurement channels?

Yes definitely. Not only will they stick to it, but they will likely increase more.

What is Cadillac doing to promote used car sales, including the Certified Pre-Owned Vehicle Program? Has Cadillac launched or proposed an online platform for used car sales?

[CarBravo has] Piloted at select dealers. At this time, we are not part of Pilot Dealers. We are part of the next wave.

How do Cadillac and GM view digital retail platforms for private-brand electric vehicles powered by Tekion? How have brands approached dealer recruitment?

All stores that sell EVs are eligible.

It’s a really great experience for our customers. I doubt 100% of customers would want to buy online. Others will stick to traditional methods. Some customers start with DRP and then switch back to traditional methods along the way. There will also be certain customers who would like to complete their transactions with DRP. This tool allows you to do just that.

How are Cadillac dealers fixed operations? Are there concerns in specific areas, and how are dealers and Cadillac resolving concerns?

Our business has grown. As the average age of cars is rising, fixed work is increasing.

Finding a technician is always a concern.

Are there any changes to Cadillac’s facility image program? Given the shift to online retail, declining inventory levels, the upcoming EV era, or uncertainty about the future of your franchise model, should your facility size/equipment program requirements be reduced or changed?

This new image program is still being rolled out. It’s pretty digital. Walking in the store feels like an Apple store.

Beyond that, there was no real discussion [about] Reduced footprint, that sort of thing. Those discussions haven’t actually taken place yet.

What is missing from your product line?

We have such a hot product right now.The demand for the Escalade is incredible. There are other brands trying to compete with it.

The demand for CT5 is really good. Our CT5 Blackwing is great. The Lyriq is just — oh my god, the Lyriq is just an incredible car. I think it can attract a lot of Tesla buyers. And the future lineup, the electric lineup, is great. we are in the right place. Now is a good time to become a Cadillac dealer.

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