Cadillac Delays Dealer Incentive Plan Again

General Motors Co.’s Cadillac unit has again delayed the launch of its controversial Project Pinnacle program for its U.S. dealers, this time from January to March, Automotive News reports. The plan originally was to launch last month.

Cadillac chief Johan De Nysschen says the rescheduled rollout will give dealers more time to understand the program and figure out how to capitalize on it. Project Pinnacle divides dealers into five groups based on their sales volume, with better-selling outlets receiving more benefits. Critics call the plan a possibly illegal scheme to force the brands smaller dealers out of business.

On Tuesday Cadillac ended an offer to its 400 smallest retailers to accept a payment of as much as $180,000 to relinquish their franchise. De Nysschen says only 20 dealers opted to accept the deal. AN suggests several considered the offer too low to be worth while.

De Nysschen insists Project Pinnacle isn’t intended to reduce Cadillac’s 925 dealer body in the U.S. But smaller dealers complain the program will do just that by rewarding high-volume sellers with lower prices and other benefits. The plan includes converting Cadillac’s smallest dealerships—generally located in small towns—into “virtual” stores where customers use 3-D video displays to choose cars, rather than perusing physical inventory.