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Dealers to get big payoffs for customer service

by David Zatz on

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.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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