LAS VEGAS -- Cadillac's annual make meeting with dealers and brand President Johan de Nysschen was more hospitable than in recent years, according to several dealers who attended the meeting.
Concerns continued to be raised about product plans and standards under Project Pinnacle, Cadillac's ambitious and contentious program to overhaul its dealership operations. But dealers said the concerns were more about tweaking Pinnacle rather than changing its core principles.
"There were some congratulations going on in the meeting, which hasn't happened in a bit," Will Churchill, head of the Cadillac National Dealer Council, told Automotive News. "There's this little bit of optimism that's creeping into the Cadillac dealer body. A lot of work to do, the victory flag by no means is even out of the wrapper yet, but it's nice to have a little bit of wind forming at your back."
Pinnacle, following several delays and changes, launched in April 2017. De Nysschen's willingness to alter the annual program, including revisions for 2018 to better help dealers meet goals, is one of the main reasons dealers appear to be settling into Pinnacle.
The 2018 changes, which followed many dealers missing targets in 2017, covered such areas as the weighting of CSI scores, retail sales objectives and roadside assistance requirement.
Dealers described the meeting as "productive" and going "very well" and "pretty good." A smaller dealer -- initially the loudest opposed to the program -- said he particularly appreciated de Nysschen's transparency.
De Nysschen described the tone of the meeting as "very positive and encouraging."
"Now that we are almost one year into the roll out of Project Pinnacle, it's clear that the dealers who have engaged with the program are understanding and receiving its intended benefits," de Nysschen said in an emailed statement.
Despite the optimism, 2018 still is expected to be a challenging year for Cadillac's more than 900 dealers, as it remains a car-heavy luxury brand in a crossover-crazy market.
Cadillac is scheduled to unveil the XT4 compact crossover at the New York auto show; however, that vehicle isn't expected to arrive until the tail end of the year, leaving dealers with a lineup that's another year older.
Cadillac's U.S. sales dropped 8 percent in 2017 -- the second straight year of decline.
The XT4 is expected to be the beginning of an influx of crossovers and new products for Cadillac.
Cadillac's lineup currently comprises the Escalade large SUV and four sedan nameplates but only one crossover, the midsize XT5. The XT5, introduced in early 2016, has outsold the four sedans combined this year. By 2022, Cadillac is expected to have four crossovers and only three sedans, plus the next-generation Escalade.
You can reach Michael Wayland at mwayland@crain.com -- Follow Michael on Twitter: @MikeWayland
