Cadillac has created a new dealer incentive program entitled “Project Pinnacle” expected to roll out early 2017. The objective of Project Pinnacle is to create tiers of “effective pricing.” The initiative aims to assign dealers to one of five tiers based on volume and high adherence to brand standards. Critics of the project note that the plan is essentially trying to squeeze out smaller stores. GM has had a past history of pulling franchise agreements from dealerships; think back to post recession 2009 when GM declared bankruptcy. While dealers are no stranger to incentive programs created by the manufactures, could “Project Pinnacle” be in violation of state franchise agreements meant to protect dealers from unfair treatment by the factory?
More information on this topic was found in Automotive News.