Ford Reportedly Plans to Slash Dealer Bonuses

Ford Motor Co. plans to cut dealer bonuses by nearly 50% in a cost-saving move that will take effect in April, said a source familiar with the issue.

Under the new dealer incentive program, bonuses will be paid to all dealers meeting monthly sales targets. But dealerships meeting 75% of their year-earlier sales would receive only $75 per vehicle, and those that exceed year-earlier sales would receive $125 per vehicle.

Under the current program, Ford pays certified dealerships a flat 1.25% of the base sticker price for every vehicle they sell.