Ford offers year-end incentives for licensees to meet sales targets

Posted on 11/8/2014 11:37:56 AM

Ford Motor factory, trying to hit sell targets year-end, launched a rewards program to export cash bonuses distributors to meet sells targets, any retailers criticized for cheapening the brand.

These distributors, incentive plans, often referred to as ladder prizes, including Ford distributors  pay more money for each model, as they pass through the sales threshold. Dividend Program sales growth that began on November 1 and ends on January 2, providing 100-600 yuan per car sold to dealers to pay on C-MAX, Fiesta, Focus, Fusion and output mode according to November 1 dealer memo obtained by Bloomberg News Ford.

Temptation these bonds might encourage dealers to sell cars at the lowest rates and offer generous discounts to lose any money because they know of the plans of automobile manufacturers agreed to compensate. While it may reduce the loss of market share, you can do business, you can depress with great discount benefits and resale value models sold less expensively. May also alter the clients who lost a generous deal.

"The product of Mitsubishi head rotor head rotor 149701-0520 is cheaper, it's just a shame," Jack Kain Ford dealer in Newyork, "Kentucky. If you look at our numbers in October, say they are not competitive. So they feel to do something drastic to change this photo ".

Sales of Ford cars and trucks in the US fell 1.8 percent last month, its market share has dropped to 15.1 percent so far this year, 16% last year. Accounting for auto sales in the US in October rose 6.1% to $ 128 million.

One year later

CEO Mark Fields said sales and earnings decline this year, the conversion of two Ford F-150 truck factory production, aluminum-bodied version of its best selling models. Ford began construction of the new F-150 plant in Michigan last month, the automaker has said it will not reach full production until the second quarter of 2015.

Dealer incentive bonus plan is not a ladder, Ford sales analyst Erich Merkel said in an interview.

"We call based on the number of growth plan," Merkel said. "We went to great lengths to solve many problems and we have modified the plan."

Merkel said he could not detail the changes as they are sellers who are not forged. He said it took "months" to develop and distributor incentive programs, it is not a "gut reaction" to lower sales.

Program "Benefits"

"We work with our distributors, including our National Dealer Council, to ensure that the program structure is appropriate, so that it will be mutually beneficial for us, our dealers and customers," Merkel said. "The aim is to produce from a sales perspective, advantageous results."

Call Bo Smith, President of the National Ford Dealer Council did not immediately respond. Texas Ford dealer Charles Gilchrist, a member of the commission, declined to comment, said: "I am not familiar with the specific circumstances of the program."

On behalf of Kain, Kentucky by the National Automobile Dealers Association, said he will try to convince Ford to stop the program.

"Ford Dealers are now under the gun, certainly are not in favor," Kane said. "This is not a fair process, especially for small retailers is a great market nearby, like many of us are."

A significant discount

Large retailers, has a rich inventory, you can work more quickly to $ 600 per vehicle incentives through the sale of high-capacity deep discounts incomparable models small distributors, Kain said.

"Great dealer can sell at a very low price of these cars - I can not afford the price - where to go, they went to make big money for the time," Kane said. "It confuses my clients who have problems that can not meet the price is one thousand US dollars cheaper 10 miles on the highway."

New plan for Ford, retailers receive a $ 100 bonus car reaches 60 to 79.99% of sales targets, 200 yuan car reaches 80 99.99% of our goal of $ 400 cars manufactured from 100 to 109.99% of the goals and 600 yuan or more cars for sale 110% target, according to the memo.

The memorandum states that the bonds "are paid to the dealer, and can not be passed to the customer."

Since gasoline prices in the US have fallen below $ 3 a gallon, sales of small cars from Ford fell sharply. C-MAX drop hybrid car sales this year by 23%, while the miniature carnival is 10 percent, while compact Fox fell 7 percent.

But Ford Fusion family sedan is a record pace, with sales growth of 6% this year, to October sold 263,431 models. Sales rose 1.8%, to escape the small

SUV, which has delivered 255,081 through October.

Ford dealership System includes all of these models, as they are part of a group call car "super sub" Merkel said.

"This is not just for falling sales vehicles," Merkel said. "There should be more flexible to our collaboration with some of our customers."

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