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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 ELR regen on demand brakes win 2014 Green Car Technology award

Just like the Oscars, Green Car Journal decided a few years ago to up the number of nominees for its annual award. For the annual "Green Car of the Year" award, given out at the Los Angeles Auto Show each year, there are five finalists. For the "Green Car Technology" award, there are a fantastic ten. At the 2014 Washington Auto Show today, the Cadillac ELR and its regen on demand brakes managed to beat out the nine other finalists to claim the second annual "Green Car Technology" award. What is the purpose of the "Green Car Technology" award? Green Car Journal says it wants to reward "technologies that enable significantly improved environmental performance in vehicles today," which is why only fuel-saving technologies that were "in use on American highways during the award year" can be considered. The Caddy's brakes beat out the Acura Sport Hybrid SH-AWD powertrain, the Audi 3.0-liter turbodiesel engine, the BMW carbon-fiber passenger shell from the i3, the 1.0-liter EcoBoost engine used by Ford, the plug-in hybrid powertrain in the Honda Accord, Hyundai's hydrogen fuel cell technology, the regenerative brakes in the Mazda i-ELOOP, the plug-in hybrid powertrain used in some Porsche models and, finally, the Ram 3.0-Liter EcoDiesel engine. Last year, Green Car Journal gave Mazda's Skyactiv technology the inaugural Green Car Technology award. Cadillac ELR Regen On Demand Wins 2014 Green Car Technology Award Green Car Journal Lauds Cadillac's Electric Car Tech at Washington Auto Show WASHINGTON, Jan. 22, 2014 /PRNewswire/ -- Cadillac's innovative Regen on Demand technology has taken top honors as the winner of Green Car Journal's 2014 Green Car Technology Award™. The prestigious award was presented at a Green Car Journal press conference during the Washington Auto Show's second Policy Day. "Cadillac has cleverly evolved a common electric-drive efficiency system into an intriguing feature that adds a new dimension to the driving experience," said Ron Cogan, editor and publisher of Green Car Journal and CarsOfChange.com. "Ever-increasing efficiency is crucial to our driving future, yet efficiency itself is not an attraction for a great many car buyers.

Cadillac recalls 120k examples of ATS for fire risk

Cadillac is recalling a total of 119,339 units (96,145 in the US alone) of the 2013-2016 ATS sedan, because the coil antenna module that powers the rear defogger can overheat. The problem has been linked to four fires, but there have been no injuries, fatalities, or crashes, according to the automaker. During manufacturing, the antenna might have been produced with "critically weak terminal connectivity." If being cycled on and off often or used continuously, these faulty examples can overheat, leading to a fire in the driver's side rear pillar. According to the company, "less than 1 percent of the recalled vehicles are expected to have the condition." According to the National Highway Traffic Safety Administration (in a PDF), the fix is a reflash for the ATS' Electronic Climate Control module that automatically turns on the rear defogger when the engine starts. In addition, 2013 models keep the system on continuously at low temperatures at highway speeds and this is also being disabled in the update. The changes are meant to cycle the coil less often, but owners can still turn it on manually. Related Video: GM Statement: General Motors is recalling approximately 96,145 2013-16 model year ATS sedans in the U.S. Some of these vehicles may have been manufactured with critically weak terminal connectivity in the coil antenna module, which powers the rear defogger system. If the module has the condition and is subjected to excessive cycling or continuous operation, it may overheat and a fire may develop inside the rear pillar on the driver's side of the vehicle. Less than 1 percent of the recalled vehicles are expected to have the condition. GM is aware of four fires but no injuries, fatalities or crashes. Including Canada, Mexico and exports, the total population of the recall is approximately 119,339. RECALL Subject : Rear Defogger Coil Antenna Module may Overheat Report Receipt Date: SEP 03, 2015 NHTSA Campaign Number: 15V558000 Component(s): VISIBILITY Potential Number of Units Affected: 96,145 All Products Associated with this Recall Vehicle Make Model Model Year(s) CADILLAC ATS 2013-2016 Details Manufacturer: General Motors LLC SUMMARY: General Motors LLC (GM) is recalling certain model year 2013-2016 Cadillac ATS sedan vehicles manufactured April 23, 2012, to September 2, 2015. In the affected vehicles, the coil antenna module that powers the rear defogger system may generate excessive heat due to excessive cycling or continuous operation.