incentive rules manual (gold book)...6 any vehicle purchased for resale. vehicles purchased for...

Incentive Rules Manual (Gold Book)

Revised

Date: August 1, 2018

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Contents POLICY STATEMENT ......................................................................................................................... 3

Consumer and Dealer Incentive Programs ...................................................................................... 4

Program Announcements & Official Program Rules ................................................................... 4

Program Modifications ............................................................................................................ 4

Required Incentive Disclosure / Documentation ........................................................................ 4

Eligible Vehicles ........................................................................................................................... 4

Ineligible Vehicles ........................................................................................................................ 5

Eligibility-Based Incentives .......................................................................................................... 6

Incentive Configuration and Electronic Validation ...................................................................... 7

Employee Advantage Program .................................................................................................... 8

Price Protection ........................................................................................................................... 8

Sold Order Consumer Incentive Protection ................................................................................ 9

Orders in Transit (KZ) ................................................................................................................... 9

Dealer Cash ................................................................................................................................ 10

Financing Incentives .................................................................................................................. 10

Qualifying the Customer................................................................................................................ 10

Qualifying the Type of Sale ............................................................................................................ 11

Retail Sales ................................................................................................................................. 11

Type of Sale 1: Direct Retail Sale ........................................................................................... 12

Type of Sale L: Retail Lease .................................................................................................... 12

Small Business Sales .................................................................................................................. 12

Type of Sale B: Business Sale ................................................................................................. 12

Type of Sale E: Business Lease ............................................................................................... 12

Fleet Sales .................................................................................................................................. 13

Type of Sale 2: Government Agency ..................................................................................... 13

Type of Sale 3: Fleet Commercial / Private Utility ................................................................. 13

Type of Sale 5: Fleet Commercial Lease ................................................................................ 13

Type of Sale 7: Fleet Rental ................................................................................................... 14

Type of Sale 8: 2nd Stage Manufacturer ................................................................................. 14

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Type of Sale 9: Dealer Rent-A-Car (DRAC) ............................................................................. 14

Miscellaneous ............................................................................................................................ 14

Type of Sale D: Dealer Demonstrator .................................................................................... 14

Type of Sale M: Unwind ........................................................................................................ 14

Type of Sale T: Transfers........................................................................................................ 15

Sales Reporting and Incentive Claims ............................................................................................ 15

Incentive Program Claim Submission ........................................................................................ 16

90-Day Incentive Claim Policy: .............................................................................................. 16

Incentive Program Claim Chargeback Processing ..................................................................... 16

Program Questions or Disputes ............................................................................................. 16

Record Retention Requirements ............................................................................................... 16

Sales Personnel Incentive General Rules ....................................................................................... 17

Description ................................................................................................................................ 17

Eligibility .................................................................................................................................... 17

Eligible Position Dealer Personnel Position Code .............................................................. 18

Payment ..................................................................................................................................... 18

GLOSSARY ...................................................................................................................................... 19

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POLICY STATEMENT REGARDING ADMINISTRATION OF SALES AND INCENTIVE REQUIREMENTS FCA US LLC (FCA US) is committed to providing the best possible products and support services to its Dealers (sometimes referred to in this manual as “you” or “your”) and customers and, likewise, requires the commitment of our dealers to conduct business in a reputable and ethical manner. Accordingly, if an audit reveals failure to comply with program rules or that false or fraudulent claims/information were submitted to FCA US, FCA US will charge back the dealer amounts improperly claimed and may take the action prescribed, in the applicable program rules, in the Dealer’s dealer agreement(s), or under the law. Therefore, this Incentive Rules Manual must be reviewed with all dealership employees. FCA US reserves the right and dealer agrees to subsequent audit. FCA US reserves the right to inspect and copy any and all records that it considers as pertaining to any sales incentive payment. Dealerships may be requested to submit claims and backup documents; failure to submit claims and backup documents when requested will result in a chargeback to the dealership. Vehicles with New Vehicle Delivery Report (NVDR) information and/or incentive claims submitted resulting in incentive payment(s) found by Audits to be inaccurate, ineligible or unsupported, will not be eligible for any further incentive payments. FCA US requires that all sales incentive programs are properly administered within your dealership. Most dealership claims have been found to be properly submitted. Some of the irregularities found result from misunderstandings of program rules, poor recordkeeping, or other administrative errors. In a few instances, however, audits have disclosed evidence that appeared to show deliberate misrepresentations by some dealership personnel resulting in unjustified payments from FCA US. Although some of these occurrences may be the result of mishandled claims by dealership employees or anyone acting on behalf of the dealer, with or without the knowledge of the dealer principal, the dealer is responsible for the acts of employees or anyone acting on behalf of the dealer. As a result of these incidents, FCA US wants to remind you that the submission of fraudulent claims is a basis for termination under FCA US’s dealer agreements, which set forth FCA US’s rights upon discovery of a dealership’s submission of a false or fraudulent claim.

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This Incentive Rules Manual applies to all sales transactions, retail/consumer incentives, fleet incentives, dealer cash payments and sales personnel incentives, unless specifically excluded or amended in the Official Program Rules for a specific program.

Consumer and Dealer Incentive Programs

Program Announcements & Official Program Rules When new programs are announced, FCA US provides your dealership with instructions and Official Program Rules with regard to those matters that are specific to each program via DealerCONNECT. The Official Program Rules are in addition to this Incentive Rules Manual. You are responsible for properly implementing these instructions and all applicable program rules. You must ensure that your employees understand and follow these rules. All incentive claims will be subject to eligibility review and may be denied. In some instances, edits are also applied to previously paid records and, if determined to be ineligible, may be subject to chargeback. Consumer Incentive Programs are designed to have the incentive benefit passed directly to the final consumer. Dealer must file claims through the Incentives Configurator and Exception Claim Entry Screen where applicable. Claims will be paid to the dealer and processed on a continuing basis, unless payment is required to be made to a third party pursuant to an assignment.

Program Modifications FCA US may at any time, upon written or electronic notice to dealers, cancel, amend or modify any incentive program and any section of the FCA US Incentive Rules Manual. Posting of new or revised program rules/forms on DealerCONNECT constitutes a form of electronic notice.

Required Incentive Disclosure / Documentation The total consumer incentive payment must be clearly shown as a separate line item reduction in the calculation of the purchase price on the signed FINAL buyer’s order / purchase contract or if a lease, on the FINAL end user lease contract on the “Rebates and Non-Cash Credits” line. This computation must be done at the time of sale or lease, and must be identified on the buyer’s order or purchase contract as a sales incentive/rebate.

Eligible Vehicles To be eligible for these programs, vehicles must be:

New vehicles acquired from FCA US or a franchised FCA US dealer

Listed in the Program Description and Model Eligibility section of the specific Official Program Rules

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Sold or leased, and delivered to an eligible customer during the program period

New and unused vehicles sold and delivered by an authorized FCA US dealer

Note: Eligible vehicles may be: Dealer-owned demonstrator vehicles subsequently re-reported via the

NVDR system as a retail sale New and unused vehicles sold or leased to any entity with a dealer

license. Examples of the purpose for these vehicle sales include: customer service shuttle parts delivery facility maintenance and plow service loaner (including vehicles under the Courtesy

Transportation Program)

Titling/In-Service Requirements: Vehicles Sold to a Dealer Entity not being claimed under the Courtesy Transportation Program 1. Report as Type B or E and Title Code 33 2. Vehicles must be titled within 30 days of the reported NVDR delivery date. 3. Title must be retained on these vehicles for a minimum of three (3) months

after the reported NVDR delivery date 4. There is no mileage requirement

Titling/In-Service Requirements: Vehicles being claimed under the Courtesy Transportation Program 1. Report as Type B and Title Code 22 2. Dealership must adhere to all applicable laws including without limitation

requirements for registration, fees, and applicable taxes 3. Vehicles must be in-service for a minimum of three (3) months after the

reported NVDR delivery date and 2,000 miles OR

Vehicles must accumulate a minimum of 3,000 miles regardless of the length in time

4. Must UVDR the vehicle upon selling as a used car

The selling dealership must ensure all of these requirements are fulfilled. Dealers should always review specific Program Rules for any potential variances to the above timeframes.

Ineligible Vehicles All ineligible vehicles must be reported as a Type of Sale 1, or L, or B, or E. The “ineligible” category must be selected in the drop down box of the incentive section. Ineligible vehicles are identified as:

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Any vehicle purchased for resale. Vehicles purchased for handicap conversion and resale are exempt from this policy – selling dealer must retain a copy of the purchase agreement between the customer and conversion company. The purchase agreement on a handicap conversion must document that vehicle was converted and show that the customer received all claimed consumer incentives as a line item deduction. Additionally, second stage manufactured vehicles (Type of Sale 8) are exempt from this resale clause

Unless exempted from the Courtesy Transportation Program and applicable laws, any vehicle not titled to the NVDR customer within 30 days of the reported NVDR delivery date or title is not held for a minimum of three (3) months from the time of sale o Vehicles purchased to be given away later as a prize are exempted from this

three (3) month title requirement – selling dealer must retain proof that it was originally purchased for this purpose, e.g. contest rules and prize list, and proof of the winner’s receipt of the vehicle). The selling dealer must NVDR the vehicle at time of sale (as evidenced by buyer’s order and payment) to the contest sponsor. When there is a contest winner, the dealer then must process a CNA update.

o All Employee Advantage (EP, Friends, CDI) and Dealer Employee Purchase Programs still require title to be held for a minimum of six months when vehicle is purchased and one year when vehicle is leased.

Vehicles sold or leased and exported from the United States (outside of the 50 United States or District of Columbia) are ineligible and are also subject to an additional $3,100 charge per unit; Vehicles sold or leased for export to US territories (except Guam) are ineligible and are also subject to an additional $3,100 charge per unit. This is to cover the cost of vehicle warranty, compliance with equipment requirement of local laws and other costs related to the legitimate export of FCA US vehicles

Replacement vehicles, as a result of an arbitration award, settlement agreement or judgment, for vehicles reacquired by FCA US. However, these vehicles may be eligible for Volume Growth Program (VGP) payments. Please check the VGP program rules for clarification.

Vehicles originally invoiced to a non-domestic dealership

Vehicles purchased or “dealer-traded” from sources that are not franchised to sell that brand. For example, auctions and finance sources

Any damaged, stolen or salvaged vehicle for which a dealership was compensated by an insurance company due to a total loss or loss of the ability to sell as a new vehicle

Eligibility-Based Incentives Proof of eligibility must meet the following criteria:

Eligibility must be based upon the person who is the primary driver, the insurer of the vehicle, and named on the title

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Eligibility must be based upon the primary buyer/lessee of the new vehicle or an immediate family member living in the same household. The primary buyer/lessee must be named on the title/registration of the new vehicle.

Co- buyers/lessee may be used to establish eligibility when they are a relative living in the same household or insured on the new vehicle.

When a customer is a sole proprietor or 100% owner of a company, they may use the company as a basis to qualify for an eligibility - based incentive for a vehicle they are purchasing as an individual.

When a customer is an owner/partner of a company, they may use the company as a basis to qualify for an eligibility-based incentive for a vehicle they are purchasing as an individual. A business may use the Owner/Partner as a basis to qualify for an eligibility-based incentive for a vehicle they are purchasing for the business. Owner / Partner / Business Name must be listed on a current IRS Tax Form or an Official State Government Website document verifying the business and the owner/partner name.

NOTE: Additional requirements/exceptions may apply as stated in individual program rules.

Incentive Configuration and Electronic Validation An incentives configuration, for each unique customer, is required on all type 1, L, B and E sales and can be created and saved at any time during or after the sales process but must be created prior to submitting incentive claims. Customer eligibility must be validated via the Incentives Configurator prior to claim submission and payment. Only incentive program validations deemed “eligible” will be processed for payment. The automated validation process entails input of key customer information required to qualify a customer for a program. In certain instances where an automated validation source is not available, documents will need to be collected, scanned and submitted for review/verification. See the Incentive Configurator Validation Screen and Program Rules for acceptable documentation types. Incentives configuration and validations are performed via “DealerCONNECT > Sales > Incentives > Incentives Configurator” NOTE: Dealership use of the electronic validation process requires adherence to the following:

Certify that the validation process is used only for legitimate prospects and/or customers

Consumer information entered into the system originated from a prospect and/or customer

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Dealer is solely responsible for the collection and management of consumer data

Obtain signed consumer consent to validate eligibility (if applicable)

Retain a copy of the final saved configuration in the deal jacket

Employee Advantage Program To be eligible for the Employee Purchase, Friends or CDI programs, the employee must obtain a control number through an approved channel (refer to official Program Rules). The dealer is responsible for completing the control number validation process via DealerCONNECT Incentives Configurator PRIOR to the sale of the vehicle and retaining the confirmation print out in the deal jacket, along with a completed Pricing & Acknowledgement form. Failure to comply will result in a chargeback. Inappropriate use or unauthorized procurement of the EP / CDI / FP control numbers will result in program chargeback and possible program suspension. An incentive configuration must be created in order to validate a control number. Control Number Validation Screen can be found on DealerCONNECT > Sales > Incentives Configurator > select the appropriate program and click validate.

Price Protection Price Protection is available on sold orders to protect the customer from price increases which occur between the vehicle order date and the KZ (invoice) date. A claim for Price Protection must meet the following criteria:

The sale must be documented by a signed and dated buyer’s order which details the agreed upon selling price at the time of order and secured by a customer’s deposit with receipts at time of order. Dealer must print and retain the Order Confirmation

Ordered new for immediate production, or selected from dealer stock orders not yet invoiced, and delivered to the original customer

Must be delivered within 14 days of the date the vehicle is received at the dealership (KZX date)

Must be delivered to the customer whose name is on the factory order and subsequent factory invoice at the documented agreed upon price at time of order

You must claim Price Protection by inserting the price protection program number on the Exception Claim Entry Screen when reporting the sale. Program numbers are in the Pricing Announcements and stored in DealerCONNECT on COMDASH which has replaced eFiles.

Price Protection claims are made via “DealerCONNECT > Sales > Incentives Claims Processing > Incentive Claim Entry > Exception Claim Entry”

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Sold Order Consumer Incentive Protection This program protection may be available when a vehicle is sold or ordered for a customer during an incentive program and that program has expired by the time the vehicle is physically delivered. This protection is available unless stated otherwise in the Official Program Rules. A claim for sold order consumer incentive protection must meet the following criteria:

The sale must be documented by a signed and dated buyer’s order, during the program period, which details the agreed upon selling price, and secured by a customer’s deposit with receipts, at time of order. Dealer must print and retain the Order Confirmation

Ordered new for immediate production, or selected from in-transit dealer stock, and delivered to the original customer

Must be delivered within 14 days of the date the vehicle is received at the dealership (known as X date)

Must be delivered to the customer for whom the order was placed and at the originally agreed upon price at the time of order

All consumer incentives must be documented as being passed on to the customer on the buyer’s order as described in the Required Incentive Disclosure/Documentation Section

If the vehicle is delivered after the end date of the eligible program, the customer will have the choice of either the consumer programs available at the time of customer order or consumer programs at the time of vehicle delivery, but not both

The qualification date is the date the dealership and customer agree on the purchase or lease of a vehicle. The purchase/lease terms, conditions, and price of the vehicle must be clearly documented via a completed signed buyer’s order and proof of deposit/payment on the date of sale. This date can override the delivery date for incentive payment. This date protects the customer and/or dealership for any eligible incentives available at the time of sale (excluding objective-based and stair step programs). Qualification Date is also known as Sale Date

The “Sold Order Protection” box must be selected when creating the incentive configuration

Orders in Transit (KZ) Dealerships have the ability to report an incoming sold order that has been invoiced to the dealership (KZ status), but is not yet in Dealer inventory (KZX status). To do so, Dealerships must meet all of the following conditions below:

Ordered vehicle must be in-transit (KZ status) in order to be eligible

The Dealer must secure full cash payment or a valid finance/lease contract from the customer which must be documented by a signed and dated buyer’s order

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which details the agreed upon selling price and is supported by receipts of payments received

Dates on all relevant paperwork must match the reporting date

Selling Dealer must possess proof of ownership of the vehicle at the time the vehicle is reported sold

Vehicle must be delivered within 14 days of the date the vehicle is received at the dealership (KZX date)

Vehicle must be delivered to the customer that initially consummated the sale and at the originally agreed upon price at the time of sale

As with all programs, the customer must qualify for the programs being claimed and the selling Dealer must adhere to any applicable State or Local laws governing the delivery of the vehicle. Additionally, please note that upon processing the NVDR, the vehicle warranty will commence.

Dealer Cash

Sold Order Protection is not available

Dealer Cash is paid based upon delivery date

Financing Incentives

A) Retail Lease Incentives

Lease incentives (lease cash, lease loyalty, subvented rates, residual enhancements, etc.) are only available on lease contracts. The vehicle may be leased in the individual’s name or in the individual’s company name. Vehicles must be leased for a minimum of twelve (12) months. A copy of the lease contract must be retained at the dealership. Retail leases must be reported on the NVDR as follows:

Type of Sale L or E

Lessee’s name and address must be reported

B) Special APR Financing

Special APR retail financing is available exclusively through designated lenders and participating dealers to qualified purchasers of eligible vehicles.

Qualifying the Customer It is the dealer’s responsibility to qualify all customers to determine the appropriate Type of Sale and incentive eligibility. Please review the qualifications below to determine the type of customer and how to report the sale.

An Individual (purchasing or leasing for personal use)

Business entity that does not possess or qualify for a registered Fleet Account Number (FAN)

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Government Agency

Tax Supported Entity

Publicly Held Utility

Private Utility Company

Daily Rental Company

Dealer Rent-A-Car (DRAC)

Registered Fleet Customer (without a VIP contract)

Qualifying Fleet Customer (qualifies as a Fleet Customer but does not possess a Fleet Account Number. Dealer should obtain a FAN for these customers)*

Fleet Volume Incentive Program (VIP) Account*

Fleet Management Company (Leasing)

Leasing Company (Dealer must also qualify the end use customer)**

2nd Stage Manufacturer A Fleet customer is defined as having:

Purchased and registered or leased five (5) or more vehicles (any make or model) during the current or preceding calendar year, current or preceding model year or preceding twelve (12) month period, or

Currently operates fifteen (15) or more vehicles (owned or leased, any make or model)

*Dealer is required to determine if the business customer has a FAN or VIP contract by accessing DealerCONNECT>Sales>Fleet>Fleet Account Number (FAN Lookup), or calling the Fleet Hotline at (800-999-FLEET). If the customer qualifies but does not possess a FAN, dealer should call the Fleet Hotline to obtain a new account on behalf of the customer or contact the local Fleet Regional Account Executive (RAE). **When selling to a Leasing company, it is the dealer’s responsibility to know who the end use customer is, in order to qualify the Type of Sale. ***As a reminder, the placing of a Retail Sold order should be used for Legitimate Retail Customers Only. Retail Sold should not be used to expedite Retail Stock or place Fleet Customer orders. If a unit is ordered as a Retail Sold and then delivered to a Fleet customer you may be subject to chargeback of incentive payments.

Qualifying the Type of Sale Refer to Official Program Rules for specific program eligibility requirements and Retail incentive compatibility.

Retail Sales A sale may not be reported as a Direct Retail or Retail Lease (Type 1 or L), if the customer qualifies under a Small Business or Fleet Type of Sale.

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Type of Sale 1: Direct Retail Sale

An Individual (purchasing for personal use) An individual purchasing with a Retail Balloon Contract should also be reported

as Type of Sale 1. (See Glossary)

Type of Sale L: Retail Lease

An Individual (leasing for personal use) Type of Sale L is used for a lease to an individual, where the title of the vehicle is

held by the financing entity and the vehicle is registered/co-registered to the financing entity. All leases must possess lender standard clause(s) whereby the lender guarantees the future residual value with mileage restrictions.

The lessee’s name and address must be reported on the New Vehicle Delivery Report (NVDR).

Small Business Sales

Type of Sale B: Business Sale


Type B reported vehicles to a dealership entity must be additionally designated with Title Code 33. All Courtesy Transportation Program (CTP) vehicles must be designated with Title Code 22.

For clarity, Fleet Commercial Non-VIP and VIP customers are eligible to receive the retail consumer and dealer cash incentives if the purchased vehicle is from a dealer’s retail ordered stock. These must be reported as Type of Sale B and Fleet incentives cannot be claimed. Refer to Program Rules for details.

Type of Sale E: Business Lease


Leasing Company with a FAN and an end use customer without a FAN

Leasing Company without a FAN with an end use customer without a FAN. Use Type of Sale E for a lease between a dealership and a Business, where the title of the vehicle is held by the financing entity and the vehicle is registered/co-registered to the financing entity

Type E reported vehicles to a dealership entity must be additionally designated with Title Code 33.

All leases must possess the lender standard clause(s) whereby the lender guarantees the future value with mileage restrictions.

All eligibility based incentives are qualified upon the end use lessee. All Required Incentive Disclosure/Documentation (see page 4) still applies.

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For clarity, Fleet Commercial Non-VIP and VIP customers are eligible to receive the retail consumer and dealer cash incentives if the leased vehicle is from a dealer’s retail ordered stock. These must be reported as Type of Sale E and Fleet incentives cannot be claimed. Refer to Program Rules for details.

Fleet Sales

Type of Sale 2: Government Agency

Government Agency

Tax Supported Entity

Publicly Held Utility Company Type of Sale 2 sales from Retail ordered stock do qualify for the better of BID or

Retail Incentives, but not both. Vehicle should be reported as a Type of Sale 2. Refer to Program Rules for eligibility. Contact the Fleet Information Center for assistance.

Type of Sale 2 with BID concessions are not eligible for Retail Incentives and must be reported as a Type of Sale 2.

Type of Sale 3: Fleet Commercial / Private Utility

Registered Fleet Account

Fleet VIP Customer

Private Utility Company If the customer qualifies for a Fleet Account number but does not possess a FAN,

the dealer should obtain a FAN on behalf of the customer. Fleet sales claiming Fleet Incentives must be reported as a Type of Sale 3 and

requires the customer to have a FAN. Fleet VIP sales ordered Fleet are not eligible for Retail Incentives.

For clarity, Fleet Commercial Non-VIP and VIP customers are eligible to receive the retail consumer and dealer cash incentives if the purchased vehicle is from a dealer’s retail ordered stock. These must be reported as Type of Sale B and Fleet Incentives cannot be claimed. Refer to Program Rules for details.

Type of Sale 5: Fleet Commercial Lease

Fleet Management Company

Fleet VIP Customer

Leasing Company with a Fleet account and an end use customer with a Fleet account

The leasing company and its customer must each have a Fleet Account Number (FAN).

If the customer qualifies for a Fleet Account number but does not possess a FAN, the dealer should obtain a FAN on behalf of the customer.

All eligibility based incentives are qualified upon the end use lessee.

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Type of Sale 5 Fleet end use customers (excluding VIP) are eligible for the better of Fleet or Retail Incentives, but not both. Refer to Program Rules for eligibility.

Fleet Leases claiming Fleet Incentives must be reported as a Type of Sale 5 and requires the customer to have a FAN.

Fleet VIP sales ordered Fleet are not eligible for Retail Incentives.

For clarity, Fleet Commercial Non-VIP and VIP customers are eligible to receive the retail consumer and dealer cash incentives if the leased vehicle is from a dealer’s retail ordered stock. These must be reported as Type of Sale E and Fleet incentives cannot be claimed. Refer to Program Rules for details.

Type of Sale 7: Fleet Rental

Rental Car Company

Registered Fleet Account If the customer qualifies for a Fleet Account number but does not possess a FAN,

the dealer should obtain a FAN on behalf of the customer. Use Type of Sale 7 for sales or leases to Rental Companies that are eligible to

receive Rental Incentive discounts.

Type of Sale 8: 2nd Stage Manufacturer

2nd Stage Manufacturer (see Glossary for definition) Vehicles sold to 2nd Stage Manufacturers cannot be re-reported as any other Type

of Sale. Type of Sale 8 is not eligible for any additional Fleet or Retail Incentives. Must be an FCA US qualified 2nd Stage Manufacturer (refer to Program Rules.)

Type of Sale 9: Dealer Rent-A-Car (DRAC)

Vehicles placed into rental service under the terms of the DRAC Program Type of Sale 9 is not available for Retail ordered out of stock sales.

Miscellaneous

Type of Sale D: Dealer Demonstrator

Dealership owned vehicle placed into service for promotional purposes Report a demo transaction via “DealerCONNECT > Sales > Sales Reporting > Time

of Sale Reporting > Trade/Demo > Dealer Demo Entry”. When a ‘Demo’ vehicle is sold or leased at Retail, a subsequent NVDR is

completed using the date the Retail customer takes delivery.

Type of Sale M: Unwind

An ‘unwind’ MUST be reported if a vehicle was previously reported sold in error or the sale was voided.

Report an unwind transaction via "DealerCONNECT > Sales > Sales Reporting > Time of Sale Reporting > Additional Options > Unwind Sale (NVDR Only)".

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When an ‘unwind’ vehicle is sold or leased at Retail, a subsequent NVDR must be completed using the date the Retail customer takes delivery.

Type of Sale T: Transfers

A transfer must be used for vehicles transferred / traded to another authorized FCA US dealership’s inventory.

Report a transfer transaction via “DealerCONNECT > Sales > Sales Reporting > Time of Sale Reporting > Trade/Demo > Dealer Trade Entry”. Transaction must be completed by the Dealer who is transferring vehicle to the other Dealer’s inventory.

When a ‘transfer’ vehicle is sold or leased at Retail, a subsequent NVDR is completed using the date the Retail customer takes delivery.

Sales Reporting and Incentive Claims To report sales, the NVDR is input via “DealerCONNECT > Sales > Sales Reporting > Time of Sale Reporting” screens OR if a saved incentive configuration exists, the NVDR screen may be accessed to report the sale from the Incentives Configurator. Incentives are claimed via “DealerCONNECT > Sales > Incentives> Incentives Configurator. Price protection, CTP, and sold order protection claims are submitted via “DealerConnect > Sales Reporting > Incentives Claims Processing > Exception Claim Entry screens. Sales are to be transmitted to FCA US within two (2) working days following the vehicle delivery. Sale and customer information must be reported accurately. NVDR submissions with incorrect customer information are subject to an additional $500 surcharge per incident. NOTE: Changing key NVDR fields (customer name and address, type of sale, and delivery date) will void saved incentive configurations and chargeback any paid claims. A new incentive configuration will need to be created to resubmit claims. Reported vehicle sales that did not finalize or were reported in error must be re-reported through NVDR as an Unwind – Type of Sale M. Using this function will chargeback incentives to your dealership, make the vehicle eligible for future incentives and make the vehicle visible to dealerships potentially performing vehicle locates. Dealers are solely responsible for the complete and accurate reporting of their sales and claims for payment. Any payment by FCA US resulting from inaccurate reporting of vehicle sales and/or Incentive payment claims will be charged back to the dealership.

The customer’s bill of sale and buyer’s order must clearly show:

Customer’s name and address

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Date of sale

Vehicle identification number

Selling price of the vehicle

Dealer-installed optional equipment and the price of the equipment

Consumer incentive amount and as applicable, discount amount for any no-charge equipment incentive programs (per the Required Incentive Disclosure/Documentation section)

Incentive Program Claim Submission

90-Day Incentive Claim Policy:

All claims for incentives must be submitted electronically to FCA US within ninety (90) days following the NVDR delivery date. Electronic claims submitted ninety-one (91) days or more after the NVDR delivery date will receive an ineligible code and may not be paid.

Incentive Program Claim Chargeback Processing

Program Questions or Disputes

All questions or disputes relating to the eligibility of customers, vehicles, payments or other elements of a program will be disposed of at the sole discretion of FCA US whose decision in such matters will be final. Claims and inquiries concerning sales and incentive programs must include customer name, validation number (if applicable), VIN, vehicle delivery date, and Program ID. In the event of an incentive payment system chargeback (not related to Audit), the dealer may submit a dispute to FCA US Incentive Assistance Center within ninety (90) days of the initial chargeback. FCA US reserves the right not to consider incentive claim disputes submitted more than ninety (90) days after the initial chargeback. Incentives Assistance Center Hotline: 800-227-0757 FAX: 855-409-0473 eMail: [email protected]

Record Retention Requirements All documents/records pertaining to the acquisition, sale/lease and delivery of a vehicle must be retained by the selling dealership for a minimum of two (2) years from the date of incentive payment, or end of the program, whichever is later. At a minimum, retain the following documents:

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Customer’s Bill of Sale/Dealership Invoice Lease Agreement/Contract (if applicable) Title and Registration Documents including a copy of the actual title and/or official state confirmation thereof Signed Buyer’s Order/Purchase Contract Customer Certificate/Coupon (if applicable) Program specific Purchase & Lease Pricing Acknowledgment form (Employee Purchase / Friends / Certain Designated Individual / Affiliate Fleet / Affiliate Supplier / Affiliate Designated Corporate Customer / Dealer Employee Purchase, if applicable Program specific forms/documents (On-the Job, Target Direct Mailings, etc.) All proof of customer eligibility documentation sent to FCA for validation All Customer Payment Documents including copies of checks and all receipts Factory Vehicle Invoice Finance Contract (if applicable) Lease/Short-term Finance Worksheets (if applicable) Odometer Statement Insurance Verification Carrier/Shipper Receipt (proof of vehicle delivery to dealership = ‘X’ Date) Customer Dealership Delivery Document Vehicle Order Confirmation Final Saved Incentive Configuration

Sales Personnel Incentive General Rules

Description Incentive payments are awarded to eligible dealership personnel for delivering qualified vehicles within the program period. Refer to Program Rules.

Eligibility To be eligible for reward payments, qualified sales personnel must be employed at the dealership and listed in DealerCONNECT at the time of sale and payment. Payments will not be split and may vary based on individual Certification/Training level. Payments are only eligible for sales professionals whose name is listed on the original sales documents as the sales professional of record. General Managers, General Sales Managers, New Vehicle Sales Managers, Truck Sales Managers, Used Vehicle Managers and Business Link Account Managers are qualified to receive applicable incentive payment overrides. Should the General Manager, General Sales Manager, New Vehicle Sales Manager, Truck Sales Manager, Used Vehicle Manager or Business Link Account Manager be the sole dealership representative in the sale, he/she will qualify for the Sales Consultant payment as well as any applicable Sales Manager Override or Flat Pay payments.

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See official Program Rules for customer and Type of Sale eligibility requirements.

Eligible Position Dealer Personnel Position Code General Manager (Fiat – Studio Director) 02 General Sales Manager 03 New Vehicle Sales Manager (Fiat – Studio Lead) 04 Truck Sales Manager 05 Assistant New Vehicle Sales Manager 25 Used Vehicle Manager 07 New Vehicle Sales Consultant (Fiat – Specialist) 12 Used Vehicle Sales Consultant 34 Business Link Account Manager 41 Business Link Sales Consultant 42 Fleet Manager 30 Dealer Lease Manager 38 Dealership Sales Administrator (Affiliated Competitive Brand Sales Consultants) 15 Internet Sales Manager IM

Payment Incentive payments will be paid via debit card system that requires accurate Social Security number, S-ID, home address and home phone number on file via “DealerCONNECT > My Dealership > My Personnel”. If qualified sales are retracted at any time for any reason, the participant’s debit card may be charged-back. Salesperson/Manager payments found by audit to be ineligible due to inaccurate or misrepresented NVDR submissions are subject to chargeback to the dealership. All incentive awards are considered income for tax purposes. FCA US is required to issue a U.S. Information Return Form 1099 covering the value of awards issued. FCA US assumes no legal or financial responsibility for any such taxes.

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GLOSSARY

APR INCENTIVE

An Annual Percentage Rate incentive provides a special financing rate through a designated lender as defined in the Official Program Rules.

AUTHORIZED DEALER

Individual or company who is a party to a dealer agreement with FCA US for the sale and service of the specific FCA US vehicle line.

CONSUMER INCENTIVE

Payment of money, goods, or services intended to benefit the new vehicle consumer.

DEALER INCENTIVE

Payment of money, goods or services directly to the dealership (excludes consumer incentives).

DELIVERY DATE

The date that the customer takes physical possession of the vehicle.

END USER

The individual or company that uses the vehicle (purchased or leased) in its normal daily activity.

EXPORT

Vehicles sold or leased and used outside the United States (50 States or District of Columbia) or to the U.S. territories. Exports are ineligible for incentives and may be subject to an additional $3100 surcharge.

FLEET ACCOUNT NUMBER (FAN)

The number assigned by FCA US to a Registered Fleet Account.

FLEET MANAGEMENT COMPANY

Companies that offer leasing and financing and a variety of other Fleet Management Services to Commercial Fleet customers.

FLEET PURCHASE PROGRAM (FPP)

A fleet purchase incentive is designated on the vehicle invoice as a line item credit.

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GOVERNMENT AGENCY

Any entity that receives its primary source of funding from taxes or a government branch. For example: public schools or universities, local or municipal authorities, libraries, and parks and recreation departments.

IMMEDIATE FAMILY MEMBER

Generally defined as a spouse, parent, child, sibling or same sex domestic partner. Refer to official program rules for eligibility for each program.

LEASING COMPANY

A company that is engaged in the business of vehicle leasing.

NVDR SYSTEM

New Vehicle Delivery Report (NVDR) system by which authorized dealerships electronically report vehicle sales to FCA US “DealerCONNECT> Sales > Sales Reporting > Time of Sale Reporting”.

ORDERED FLEET

Any vehicle ordered with Fleet coding will receive invoice credits for the applicable Fleet Program.

OUT OF STOCK – Fleet rules definition

Any Vehicle ordered for dealer retail stock inventory and thereafter sold. Registered Fleet customers may opt to take delivery of a vehicle out of stock from a dealer’s retail inventory. Vehicle is to be reported as a Retail Type B or E sale if retail incentives are claimed.

OVER ALLOWANCE

The difference between the trade allowance on the signed buyer’s order and the dealership wholesale book value/actual cash value.

PRIMARY LESSEE

The primary lessee must be listed first on the lease agreement. The primary lessee must:

Be primarily responsible for the terms of the lease agreement

Have possession of the vehicle the majority of the time

Have the insurance policy in his or her name to cover the leased vehicle

RETAIL BALLOON

A Retail Balloon finance contract is one where the final payment is at least 10% of the MSRP of the vehicle. These sales must be reported as Type of Sale 1 or Type of Sale B.

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SALE DATE (Qualification date)

The date the dealership and customer agree on the purchase or lease of a vehicle. The purchase/lease terms, conditions, and price of the vehicle must be clearly documented via a signed buyer’s order and proof of deposit/payment on the date of sale. This date may override the delivery date for consumer incentive payment programs. This date protects the customer for any eligible incentives available at the time of sale (refer to Program Rules for eligibility).

2ND STAGE MANUFACTURER

A specialty body manufacturer that develops & builds a body designed for a unique industry or commercial market. Completed units (body & chassis) are distributed through specialized channels in order to service the specific market. Bids/proposals and or VIP allowances for the support of 2nd Stage Manufactures are completed through an approved FCA US dealer. 2nd Second Stage Manufacturer body cost must exceed $10,000 with a minimum annual volume of 100 units. 2nd Stage Manufacture must be NTEA approved to make a chassis cab alteration. Examples of 2nd Stage chassis alterations are: Ambulance & Rescue, Electric Utility, Tree Service, and Tow & Recovery vehicles, non-cab chassis models (with prior approval) may be included if all other eligibility criteria is met. Dealers that have potential 2nd Stage Manufacturers are to contact the Fleet Truck Regional Account Manager for review.

VIP (VOLUME INCENTIVE PROGRAM)

Incentive negotiated between a specific Fleet commercial customer and an FCA US Fleet Regional Account Sales Representative.