Automotive Industry Incentives

It's no secret that times are tough in the automotive industry — and now, the economy is affecting incentives. Disappointing first-quarter sales at Ford and General Motors have left both companies in the middle of restructuring efforts that will slash 45,000 jobs and close 16 plants at Ford and eliminate 34,000 jobs and 12 plants at GM. And with Japanese rival Toyota Motor Corp. surpassing GM in vehicle sales worldwide for the first time this quarter, GM has its work cut out for it.

As a result, automakers are operating “in defensive mode,” says Dick Fiala, account director in the automotive group at Minneapolis-based incentive house BI. “They're using an awful lot of cash for sales consultant and sales manager incentive programs.”

It's natural to see an uptick in cash incentives in rough times, says Ed Barclay, senior vice president, Mideast region, Carlson Marketing Worldwide, who is based in Troy, Mich. “Cash programs spike more when you have slower-moving models. They've always been a quick way for the factory to respond to a short-term market need.”

Other companies are tweaking existing programs to increase their effectiveness. “We have seen some companies that were previously running three 60-day programs a year cut that to two programs but run those for 90 days instead,” says Fiala. One challenge with these longer-running incentives, however, is making sure that participants are engaged from the start and results are apparent quickly.

“We are looking at 90-day programs and getting more creative with them to give them a quick start right out of the box,” says Barclay. For Barclay's automotive clients that offer travel incentives, this may mean offering first-class airfare or two extra days on the front end of a trip to qualifiers who meet their objectives in the first 30 days of the program.

While U.S. automakers are making adjustments to their programs, it's business as usual for the people who plan Toyota's incentives. “We're not the type of company that is constantly changing direction based on quarterly results,” says Louann Cashill, CMP, CMM, meeting services manager, Toyota Motor Sales, U.S.A. Inc., Torrance, Calif. A number of Toyota and Lexus offices sponsor awards for the top 10 sales-producing dealers within a particular region, and parts and service managers are rewarded based on customer satisfaction. The company also offers multiple trips each year for top sellers, with past destinations including Cabo San Lucas, Mexico, and Napa Valley, Calif.

Another company that has fared well in sales recently and is continuing its incentive programs is the GM-owned European brand Saab. “The company just took a group to Cabo San Lucas, where it was announced that Saab had sold its highest volume of vehicles this past year,” says Scott Siewert, divisional vice president of sales for Atlanta-based USMotivation. The company's incentive programs are focused on building brand loyalty and include an annual incentive trip for top sales managers as well as monthly merchandise awards for employees who meet sales and service targets.

While some automakers are scrutinizing their incentives, none appears to be scaling back on recognition. Says Fiala: “We don't see anybody pulling back from recognition programs. Because employee turnover is such a big issue, manufacturers do a lot to keep people in the fold and make sure that they feel appreciated.”

More on Motivation and Incentives: Incentives

RSS Share

Want to use this article? Click here for options!
© 2012 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

Search 125,000+ Venues

Search Meeting Space

Find Event Venues with Cvent

The Meeting Planning Blog

Face2Face Latest Posts

Sign Up for Our Free E-Newsletters

Meetings Collaborative

Rate your experience with meeting venues and suppliers.

Facility / Hotel

 
Powered by: Meetings Collaborative
Aega Awards

Latest Webinar

Global Meetings: Risk Management A to Z
February 28 | 2p.m. EST

Organizations take on more risk than usual when booking meetings outside the U.S. Join our expert panelists and learn how to assess your overall risk, write contracts that protect your organization, manage currency exchange rate fluctuations, keep your travelers safe, and much more. View it on-demand now!

VIEW ALL ARCHIVED WEBINARS

Recent Comments

Powered by Disqus

Back to Top

Explore Our Newsletters

On Corporate Meetings & Incentives


Meeting Planner Survival Guide

Whether you're a novice planner or a veteran, this compilation of must-read articles is your meeting planning resource.

Must-See Meeting Files

Visit the MeetingsNet expert-advice site, where we’ve got top meeting pros on camera answering a variety of your questions as well as a collection of educational—and sometimes offbeat—editors’ pick lists — from the top tech tools to the best books for meeting professionals.

Pharma Meeting Management Forum

8th Annual Pharmaceutical Meeting Management Forum
March 25-28, 2012 in Orlando, Fl
Register now!
Learn more about how healthcare reform will affect medical meetings.

Both forums are co-sponsored by Medical Meetings and The Center for Business Intelligence.

Suppliers/
Facilities/CVBs

MeetingsNet makes it easy to find the CVBs, tourist boards, and facilities you need for your next meeting.

Deal Finder

Special offers brought to you by MeetingsNet.

Find A Job

Targeted to all aspects of the hospitality and special events industry.

SMM PORTAL

Your source for Strategic Meetings Management info and intelligence

Facebook   Twitter   LinkedIn   RSS Feed

Inside Current Issue

February 2012

January 2012

December Cover 2011

December 2011

November 2011 CMI cover

November 2011

October 2011

September 2011

Browse Back Issues