Improve dealer profits
De Nysschen also has said that he wants to improve Cadillac dealers' profitability. He is exploring "a revised dealer margin and bonus system that encourages and rewards the right behaviors, which also includes investment in facilities and people."
He said he would like to improve new-vehicle margins and "do more indirect holdback support" to reward dealers who invest in facilities, boost marketing and expand their courtesy transportation fleets, for example.
Many Cadillac dealers have renovated or rebuilt their stores in recent years through a similar General Motors incentive program, Essential Brand Elements, which pays dealers for each new car they order from the factory. De Nysschen said that model won’t work for Cadillac. He has been slashing production in a bid to boost the exclusivity of Cadillac’s vehicles and reduce the incentives required to sell them