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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

Cadillac won't replace XTS after 2019

Cadillac wouldn't be Cadillac without a large sedan, but the definition of just which model fits that bill changed last week. Before the New York Auto Show, that role fell to the XTS. After the New York Auto Show, though, the focus shifted to the CT6. So what's to become of the XTS now that the CT6 has emerged? According to the latest intel, it'll live out the rest of its lifecycle until around 2019, but then drive off to its own funeral like so many limousines and hearses that were built off its platform. This was learned based on comments made by Cadillac chief Johan de Nysschen at the closed-door unveiling of the CT6 in Manhattan: "Ultimately, a car like XTS when it reaches the end of its lifecycle, will not be replaced." That'll be bad news for the livery business that – in the post-Town Car era – has come to rely on the XTS as the basis for its stretch jobs. "We will not have a car that will lend itself to these kind of modifications and we will probably withdraw from those markets," de Nysschen told GM Inside News. That's not all the new Cadillac boss had to say, though: he also indicated that the replacements for the ATS and CTS will be positioned differently from the current models: "As we move into the future refining our sedan portfolio, there will be no direct successor to the CTS. There will be no direct successor to the ATS. There is no point to renaming those cars because in the future those cars will disappear." Based on Johan's comments and those we've heard until now, we'd expect the replacement for the ATS to move down a size to take on the likes of the Audi A3 and Mercedes CLA, and the CTS' successor to move down half a size class as well to give the new CT6 a bit more breathing room, and possibly an even larger flagship sedan to be positioned above them all. Related Video:

Lyft and Ghostbusters want to take you for a ride in Ecto 1

Part of the fun of using a service like Lyft is that you never know exactly what kind of car will pick you up. And if you're in select cities this weekend, it could be the Ghostbusters' Ecto 1. Lyft is picking riders up in a 1982 Cadillac DeVille wagon decked out in the livery of everyone's favorite ghost catchers as part of a promotional tie-in with the new Ghostbusters movie. Just select Ghost Mode when ordering a car, and a decked-out Ecto 1 should appear. Customers can't ride with Slimer, but Lyft is packing each car with Hi-C Ecto Cooler – the relaunched juice drink that most older millennials lived on during their childhood – and Twinkies. If you're questioning the Twinkies, we strongly recommend you go back and watch the 1984 original. Egon will educate you. Riders in New York, Los Angeles, San Francisco, Boston, and Washington can order a free ride in Ecto 1 on Friday, July 1 or Saturday, July 2, between 10 a.m. and 6 p.m. Ghostbusters, starring Kristen Wiig, Melissa McCarthy, Leslie Jones, and Kate McKinnon, hits theaters on July 15. Related Video: News Source: Lyft via YouTube Celebrities TV/Movies Cadillac Wagon Luxury Special and Limited Editions Videos Lyft ecto 1 1982 cadillac deville