In its continuing quest to cut costs, the Chrysler group last week chopped a number of factory subsidies to dealers:
Floorplan assistance on vehicles in transit or for the first 15 days in dealer inventory was eliminated.
Fuel allowance for filling the tank before the vehicle is delivered to the customer was eliminated.
$50 per vehicle marketing fee was eliminated; dealers still get 1 percent of sticker price.
$75 per vehicle marketing fee negotiated last fall as part of a plan to pay for rising technology costs was eliminated.
Dealer discount on vehicle options and accessories was reduced 3 percentage points, from a range of about 14 to 18 percent to 11 to 15 percent; dealer discount on vehicles was unchanged at about 9 to 11 percent, depending on the vehicle.
Reimbursement for new-vehicle preparation was cut from an average 1.4 hours to 0.9 to 1.1. hours.