Ford Cuts Dealership Bonuses, Warranty...

... among other things. Being the single Detroit Three member to survive outside Chapter 11 and without government funding is no easy task, and Ford is beginning to feel the crisis' grip. In order to save more money, Ford decided to cut the dealerships' bonuses and advertising money, Autonews reported.

Ford plans to cut some $300 for every car in the next five years, from both sales and marketing bonuses. In all, the company's accountants say Ford will save up to $600 million a year, at Ford's 2008 sales levels.

"While these changes may not be fully endorsed by everyone, we recognize the need for shared sacrifice to support the independence and the long-term viability of Ford Motor Co. and the dealer body," Ken Czubay, Ford US sales and marketing vice president was quoted as saying by the aforementioned source.

According to the new policy, the company's Sales Drive Incentive program will be cut from $175 to $100/ vehicle, starting from July 1. Sales targets for the dealers will remain unchanged.

The time allowed for warranty claim will be cut from 90 days to only 30, starting September 1. This is not a malicious move, Ford says, as over 94 percent of warranty claims are already made within 30 days. Handling charges on parts returned will also be increased after 45 days.

At a date yet to be determined, Ford will also end the reimbursement for a full tank of fuel. The charge will be moved from the Ford reimbursed wholesale price to the dealer invoice.