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Why Cadillac is willing to lose 43 percent of its dealers

Cadillac is offering about 400 dealers in the United States a lump sum of money to close down. That represents over 40 percent of Cadillac dealers in America. Offers start at $100,000 and top out at $180,000. The average offering is around $120,000. According to Automotive News, Cadillac chief Johan De Nysschen estimates it will cost the automaker around $50 million to close these dealers. Any dealer that chooses to remain open will have to submit to Cadillac's ambitious Project Pinnacle, which will divide dealers into incentive categories based on how many units they sell. "Every single Cadillac dealer will have the potential to earn significantly higher profits than they do today," says De Nysschen. Dealers have until November 21 to decide if they want to take the cash or submit to Project Pinnacle. A logical question: Why is Cadillac willing to spend $50 million to close down 43 percent of its dealers? First, GM's luxury brand has way more dealerships than it needs. Second, the 400 dealers with offers to shutter each sold 50 or fewer vehicles in 2015, representing just 9 percent of its sales volume in America. So, while closing these smaller dealerships may have a small initial impact on sales, it's not going to be a major hit to Cadillac. Related Video: News Source: Automotive News - sub. req.Image Credit: Gary Cameron / Reuters Cadillac Car Dealers Luxury Performance

GM recalls 2014 Cadillac CTS recall

No, that headline isn't a typo - General Motors has reportedly issued a recall for one of its own recalls. The recall of a recall affects the recall of the 2014 Cadillac CTS, which wasn't supposed to be recalled. Except that the 2014 CTS was supposed to be recalled. Oh no, now we've gone cross-eyed.
Allow us to explain. The redesigned, third-generation CTS Sedan does not feature a faulty ignition switch, while the 2014 CTS Coupe and Wagon, which are based on the second-gen car, do. And as it turns out, there are only 264 of those vehicles included in last week's 8.2-million-unit, ignition-switch recall. Model year 2003 to 2013 CTS Sedans, Coupes and Wagons are still covered.
It's not entirely clear how this, frankly, colossal mistake was made, although we're betting GM is rapidly trying to get to the bottom of this embarrassing issue. Regardless, let's just take what solace we can in there being one less vehicle that GM has recalled this year.

2017 GMC Canyon steals Cadillac's V6 for a little more power

GMC is fortifying the Canyon with a new powertrain and two new trim levels for 2017. GMC will give the Canyon the 3.6-liter V6 found in the Cadillac ATS, CTS, CT6, and XT5 crossover. The engine will be matched to an eight-speed automatic transmission, which also can be found on Cadillacs, the new 2017 Colorado, and other General Motors vehicles. The new engine comes with variable valve timing, improved direct injection, and Active Fuel Management, which is a form of cylinder deactivation that shuts off two cylinders to increase fuel efficiency and performance. Power is up from 305 to 308 horsepower, while torque increases from 269 to 275 pound-feet of torque compared to the old 3.6-liter V6. With the new transmission, the Canyon benefits from a higher first gear ratio, which should help drivers get off the line more easily when towing large cargo, and lower overdrive ratios for improved fuel efficiency. The 2016 model had a six-speed automatic. The Colorado also gets the eight-speed transmission for '17. GMC previously announced the All Terrain X and Denali models. The All Terrain X trim is offered on the SLE model and comes with the new 3.6-liter V6 engine or the 2.8-liter Duramax turbo-diesel. The All Terrain X gets Goodyear Wrangler DuraTrac P225/65R17 all-terrain tires, a body-color grille surround and matching rear step bumper, bespoke 17-inch aluminum wheels, and a spray-on bedliner. The truck also is fortified with Hill Descent Control and an off-road suspension. The Denali carries the flag as the most luxurious Canyon model and gets a Bose seven-speaker audio system, more chrome, and interior upgrades. In addition to the new models and the powertrain, the 2017 Canyon will be offered with new colors – Dark Slate Metallic, Mineral Metallic, and Red Quartz Metallic – a new IntelliLink radio with a seven-inch touchscreen, a heated steering wheel as an optional extra, and Standard Teen Driver Mode. The 2017 Canyon, with all of its changes, will be available in the fourth quarter of the year. Related Video: Featured Gallery 2017 GMC Canyon Denali: LA 2015 View 14 Photos News Source: GMC Cadillac GMC Truck Luxury Off-Road Vehicles engine gmc canyon chevrolet colorado