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Manufacturer incentive programs have become increasingly controversial—the programs are overlapping, complex, and subject to confidentiality provisions. Therefore, the general public, lawmakers, and even some dealers are uncertain about their full extent.
Over at least the past six years, dealerships’ gross and operating margins have been on the decline. These declining margins have made manufacturers’ incentive program payments all the more important as dealerships try to maintain their profitability.
Anderson Economic Group has prepared this report to focus on the extent of manufacturer incentive programs, their potential effect on dealerships’ financials, and on certain problems associated with them.