Chevrolet To Begin Punishing Dealers That Deliver New Cars With Outstanding Recalls

Chevrolet has revamped its dealer incentive program to boost cash payments for selling more of three core nameplates: Cruze, Malibu and Silverado.

The program also features another new wrinkle for 2016: a slap on the wrist for any dealer found to have delivered new vehicles that are subject to an open safety recall, according to a copy of the guidelines obtained by Automotive News.

Under Chevy's Standards for Excellence incentive program, dealers pay an upfront fee for the chance to receive a bonus for hitting certain sales and customer service targets. Most of the bonus money comes from selling at least one more vehicle in the quarter than they did a year earlier.

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MDarringer - 1/4/2016 7:33:53 PM

-5 Boost

To be fair to dealers, It is a gargantuan task to manage all of the recall flow. The manufacturers make their boo boos and they want to punish dealers who have to hire people and go out of pocket to manage the information flow? True, the manufacturers pay us to do recalls. They do not pay us ONE CENT to manage and bird dog whether every vehicle has been fixed. We do our level best, yes, but it's sucking off our profits and we're getting no happy ending. That bird-dogging comes out of OUR pockets and we did not cause the recalls.

skytop - 1/5/2016 4:07:43 AM

+1 Boost

GM will probably punish their dealers by forcing them to sell more defective cars.

MDarringer - 1/5/2016 8:35:47 AM

-5 Boost

No, that's how VW does it. VW pays dealers an incentive if the dealer makes the quota, but the dealer has to go out of pocket--selling at or below cost--to hit the target. Miss the target and not only do you not get the incentive, you're probably in the red as well.