Sales Incentives for May

[XDCX]

I just read that Chrysler's extending the April Incentives for one more day and they'll announce the May Incentives tomorrow.

An earlier D-Mail suggested that the incentives would be delayed due to a systems issue.

Any predictions for May's Incentive Program? Will Chrysler continue to be aggressive and allow their dealers to compete in the market, or will they get conservative and try to save cash?

[possum]

Maybe, they are going to reveal the 25% cut today.

[MUAlum92]

Others have said this, but I think they'll be scaled back. Also think it will be mostly dealer cash so we can't give the rebates to the customer since we all know they plan on not paying incentives to dealers who are on the death list.

[CL Pgh]

Not all incentives are extended... APR programs expired yesterday!!!

I understand they'll be targeting aged inventory units as well as current customers. The loyalty program will NOT be a galley list program... just current customers with valid vehicle registration.

Then again... WHO KNOWS???

[XDCX]

Originally Posted by MUAlum92

Also think it will be mostly dealer cash so we can't give the rebates to the customer since we all know they plan on not paying incentives to dealers who are on the death list.

While I'm certainly not an expert on bankruptcy law, I wonder if Incentive Claims for vehicles sold after the filing date will be paid to all dealers, regardless of whether they're chosen for a new dealer agreement?

I can understand how Chrysler could discharge an obligation that was made before the bankruptcy filing date, but can they still pick and choose who gets paid after the filing date? If so, why would any dealer sell a car or do warranty work until they knew they were on the "chosen" list?

[littleman]

If so, why would any dealer sell a car or do warranty work until they knew they were on the "chosen" list?

EXACTLY!

[possum]

Where is the leadership in this operation. Where is Mr. Sunshine, with our spin on this news?

[Kitfox]

Admitedly I am a small store but I have instructed the staff not to sell anything we don't have in stock, which is very little, and to postpone as much warranty work as possible, if we can't postpone it then refuse any if we did not sell the car. I must say I don't remember covering this method of doing business in my college marketing classes

[Kitfox]

This comes from a dealer in the Midwest BC:

Several dealers in my BC have received an e-mail notifying them that they have been selected to join the new company. Keep an eye on your e-mail!!!

[XDCX]

Originally Posted by Kitfox

This comes from a dealer in the Midwest BC:

Several dealers in my BC have received an e-mail notifying them that they have been selected to join the new company. Keep an eye on your e-mail!!!

Thanks for the information.

Who would have thought it would have come down to this - hitting the refresh button on your e-mail program hoping that you made the cut...?

[Txflyer]

Originally Posted by Kitfox

Admitedly I am a small store but I have instructed the staff not to sell anything we don't have in stock, which is very little, and to postpone as much warranty work as possible, if we can't postpone it then refuse any if we did not sell the car. I must say I don't remember covering this method of doing business in my college marketing classes

I suspect that this will be standard operating procedure at many stores until they find out whether or not receivables are to be paid.

[XDCX]

Originally Posted by Txflyer

I suspect that this will be standard operating procedure at many stores until they find out whether or not receivables are to be paid.

The part that's so incredible is when you review the Chryslerrestructuring.com website there are thousands of pages of documentation.

They've clearly been working on this for months, yet no one from Chrysler can offer any assurance that dealers will be paid for past or future Incentive and Warranty claims. It's insane.

[ssdd]

Originally Posted by Kitfox

This comes from a dealer in the Midwest BC:

Several dealers in my BC have received an e-mail notifying them that they have been selected to join the new company. Keep an eye on your e-mail!!!

Has any one gotten one of these emails, and if so, post said contents?

[Txflyer]

Originally Posted by XDCX

The part that's so incredible is when you review the Chryslerrestructuring.com website there are thousands of pages of documentation.

They've clearly been working on this for months, yet no one from Chrysler can offer any assurance that dealers will be paid for past or future Incentive and Warranty claims. It's insane.

Yet that document contains some "less than truths" itself. Take this question and answer in the dealer FAQ section:

Q16: How will the bankruptcy filing effect payments to dealers from Chrysler?
A16: Our plan is it will have no effect on eligible payments to dealers. We have
applied for permission from the court to pay virtually all of our dealers’ factory
receivables.

I guess it all depends on how you interpret the words eligible and virtually.

[ssdd]

means we are "eligible" for a "virtual" BK