The program divides most dealerships into four tiers based on their sales volume, though dealers can choose to move to a higher tier, with more stringent standards, to qualify for larger incentive payments. Dealerships that sell fewer than about 100 vehicles a year can choose a fifth tier that carries the lowest standards but also bars them from stocking vehicles on site; customers of a Tier 5 dealership would place orders using "virtual showroom" technology instead.
Creed said some dealerships did choose Tier 5, which has an annual enrollment fee of $250. The fee for the other tiers ranges from $7,500 to $35,000, according to a program guide Cadillac distributed in June.
He said "significantly more than half" of enrollees chose to move to a higher tier than where their current sales volume would put them.
The program won't have financial implications for dealers until the start of 2017, but the rest of this year will offer them a "full simulation" of how it works, Creed said. Dealers can go online to get daily updates on the incentives they would be earning based on their performance.
He said Cadillac management is eager to address dealers' and state associations' concerns. "If there's a way for us to be able to work through them positively we're all for it," Creed said. "We have been listening and we'll continue to do so."
Meanwhile, Cadillac's 400 smallest dealerships still have until Nov. 21 to decide whether they want to cut ties with the brand in exchange for a payout of up to $180,000; those that already enrolled in Project Pinnacle can still elect a buyout and get their fee refunded.
Cadillac announced the buyout offers Sept. 23 and plans one-on-one discussions with each eligible dealership starting later this month.