Chrysler to Reward Dealerships
03-08-2010, 01:20 PM
#1
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Chrysler to Reward Dealerships
Per allpar, Chrysler intends to reward its high-performing dealerships with $$$. Here are the details:
Chrysler dealers who live up to all corporate goals for customer service can get up to $200,000 per quarter, according to Bradford Wernie of Automotive News. The new plan is a departure from the existing Five Star in providing direct financial rewards, and, equally or more importantly, by being monitored through an outside auditor rather than zone reps.
The new system will measure dealerships on all aspects of the sales, leasing, and service processes, as well as their general operations and financials. The amount a dealership can earn is based partly on their size, with 11 categories based on annual sales. The maximum payout of $200,000 per quarter is for the largest dealers (1,800 units per year) achieving 600 of 1,000 points; dealers in the smallest class, under 50 sales per year, can only earn $4,500 per quarter for the same score.
The idea is to repay dealerships quickly for their investments, which in time should also increase sales and service. The third party audits should improve consistency and reduce politicking. Chrysler will use the same company Fiat has used since 2005, Swiss SGC, which also serves BMW, Toyota, and Volkswagen; Sergio Marchionne has somewhat of a conflict of interest, having been SGC’s CEO and serving now as nonexecutive chair of the company. The audits will include mystery shopping and official visits. Another company, Morpace, will evaluate facilities.
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Chrysler dealers who live up to all corporate goals for customer service can get up to $200,000 per quarter, according to Bradford Wernie of Automotive News. The new plan is a departure from the existing Five Star in providing direct financial rewards, and, equally or more importantly, by being monitored through an outside auditor rather than zone reps.
The new system will measure dealerships on all aspects of the sales, leasing, and service processes, as well as their general operations and financials. The amount a dealership can earn is based partly on their size, with 11 categories based on annual sales. The maximum payout of $200,000 per quarter is for the largest dealers (1,800 units per year) achieving 600 of 1,000 points; dealers in the smallest class, under 50 sales per year, can only earn $4,500 per quarter for the same score.
The idea is to repay dealerships quickly for their investments, which in time should also increase sales and service. The third party audits should improve consistency and reduce politicking. Chrysler will use the same company Fiat has used since 2005, Swiss SGC, which also serves BMW, Toyota, and Volkswagen; Sergio Marchionne has somewhat of a conflict of interest, having been SGC’s CEO and serving now as nonexecutive chair of the company. The audits will include mystery shopping and official visits. Another company, Morpace, will evaluate facilities.
03-08-2010, 05:05 PM
#3
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I think it's a hopeful sign for those of us who believe in Chyrsler and the cars they build. It's been a rough past 5 years, with a lot of low quality crap made. But if they are to right the ship, starting with the dealers, from how they sell the car to service afterwards, can help bring it around in greater customer loyalty from those who don't know Chrysler to even those of who do.
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