FCA US is altering its employee/retiree discount plan to curb the practice of selling or giving away vehicle discounts to people who are not immediate family members.
Under new guidelines for FCA's Employee Advantage Program, eligible employees and retirees have until June 14 to register all eligible family members with the company.
Beginning June 14, the company will issue control numbers used for the discount program only to an FCA employee or retiree, who must personally deliver them to the eligible family member.
The Employee Advantage Program lets eligible FCA employees, retirees and their immediate family members buy FCA vehicles at a discount of up to 5 percent off the factory invoice price, depending on the vehicle.
The program limits the number of vehicles the family of each employee may buy in each year to six, according to program guidelines.
An FCA spokesman declined to comment on the change. But one Michigan FCA dealer, speaking on condition of anonymity, told Automotive News that the program was widely abused in the region, damaging dealer profitability. The dealer said he had seen employees selling employee pricing control numbers for as much as $300, and alleged that some dealers maintained a network of FCA employees to access discount numbers for otherwise ineligible customers.