Cadillac is delaying for a second time the start of a controversial new retail strategy for its 925 dealerships, the latest setback in brand chief Johan de Nysschen’s bid to refashion General Motors Co.’s luxury brand to take on BMW and other luxury players.
Cadillac is pushing back the implementation of the plan, named Project Pinnacle, until April, from Jan. 1, amid criticism from dealers who say the program is tedious and costly for big-volume operators and could compel smaller dealers to give up their Cadillac franchises.
The program overhauls the way Cadillac dealers get paid by GM for new vehicle sales. To receive maximum profit margins, dealers must follow a set of “brand standards” that dictate everything from use of tablet computers by service advisers to offering complimentary roadside assistance.