Chevrolet Ties Recalls to Dealer Incentive Program

Chevrolet has revamped its dealer incentive program.

The American automaker is boosting cash payments to dealers for selling more of its three core models: Cruze, Malibu and Silverado. Chevy is also adding a penalty to dealers that deliver a new vehicle that is subject to an open safety recall, a move that likely comes in light of GM’s massive ignition switch recall from last year.

For 2016, the company is adding a built-in monthly stair-step program that will pay up to $1,000 for Cruze, Malibu and Silverado sales that surpass the factory-set sales target by 20 percent or more. There will also be smaller per-vehicle bonuses for dealers that hit 10 to 19 percent of their objectives.

SEE ALSO: 2016 Chevrolet Malibu Review

The “recall compliance” element will reduce bonus payments to dealers that sell unrepaired new vehicles that are subject to a recall. Deductions from the incentive program will be calculated based on the share of recalled vehicles delivered to overall sales. For example, if a dealer sells two recalled vehicles from a total of 100, it would lose two percent of its bonus for the month.

The total pot of money that has been set aside for this year’s incentive program has not changed and Chevrolet did not reveal specific payout amounts.

[Source: Automotive News]

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