Chrysler Promotional Allowance Program - October, 2009

Chrysler Promotional Allowance
           Program

           October, 2009

Agenda

•   Program Overview
•   Program Processes
•   Advertising Rules and Examples
•   Getting Started
•   Program Headquarters

Program Overview

•   Program Administrator: NSI

    ƒ   Industry leader
    ƒ   Dedicated Chrysler program staff
    ƒ   Responsive, no-charge, pre-approval services
    ƒ   Robust automated claims processing
    ƒ   Comprehensive reporting
    ƒ   24/7 program web site documenting real-time claim activity

Program Overview

•   Enrollment
    ƒ   All active Chrysler Group Dealers are eligible for enrollment
    ƒ   Must complete and submit opt-in form prior to sending in a claim or a
        pre-approval.

•   Funds accrue based off of NEW (Type 1 or Type L) sales
    ƒ   PAP Fund: $160 per NEW vehicle sold
    ƒ   Bonus Fund: $90 per NEW vehicle sold

•   Reimbursement Rates
    ƒ   PAP Fund: 1:1 match (100%)
        o  Dealer spends $1,000 in approved claims, reimbursed $1,000
    ƒ   Bonus Fund: 2:1 match (50%)
        o  Dealer spends $1,000 in approved claims, reimbursed $500

Program Overview

•   Spending/Claim Period
    ƒ PAP Fund:
       o  Spend: 3 months following accrual month
       o  Claim and required documentation postmarked (or
          submitted online) no later than 2 months after the last day of
          the month in which the ad ran.

    ƒ   Bonus Fund:
        o  Spend: 1 month following accrual month
        o  All PAP Funds must be exhausted each month in order to
           receive Bonus Funds.
        o  Claim and required documentation postmarked (or
           submitted online) no later than 2 months after the last day of
           the month in which the ad ran.

PAP Funds Process Chart

Using the Funds—Example #1

•Sept.-- Dealer sells 100 vehicles
   ƒTotal Fund Balance available in Oct--
   $25,000
       o PAP Fund.--$16,000
       o Bonus Fund --$9,000

   ƒTotal Ad Expenditures in Oct.--$34,000
   ƒTotal Claimed in 1 month --$34,000

   ƒTotal Reimbursed--$25,000
       o PAP Fund --$16,000 (exhausted
       fund)
       o Bonus Fund --$9,000 (50% of
       $18,000)
   ƒRemaining Balance--$0
   ƒExpired Funds--$0

Using the Funds—Example #2

• Sept.-- Dealer sells 100 vehicles
    ƒTotal Fund Balance available in Oct-
    $25,000
        o PAP Fund--$16,000
        o Bonus Fund--$9,000

    ƒTotal Ad Expenditures in Oct.--
    $5,000
        o Remaining PAP balance--
        $11,000
    ƒTotal Claimed in 3 months -$16,000

    ƒTotal Reimbursed
        o PAP Fund--$16,000
        o Bonus Fund--$0
        o Remaining Balance--$0
    ƒ Expired Funds:
        o Bonus Funds--$9,000

Using the Funds—Example #3

• Same Dealer as in Example #2—next month
• Oct.-- Dealer sells 50 vehicles
   ƒ Total Fund Balance available in Nov.-$23,500
       o Total PAP funds -- $19,000
            – $11,000 of Sept. accrual unspent
            – $8,000 from Oct. accrual
       o Bonus Fund amount accrued in Oct--$4,500

   ƒTotal Ad Expenditures in Nov.--$28,000
   ƒTotal Claimed --$28,000

   ƒTotal Reimbursed--$23,500
       o PAP Fund --$19,000 (exhausted fund)
       o Bonus Fund --$4,500 (50% of $9,000)

   ƒ Remaining Balance--$0
   ƒ Expired Funds--$0

Using the Funds—Example #3

Claim Process
• Submit claims by mail, fax or online submission
    ƒ Utilize official claim form
    ƒ October advertising utilizing September budget is the first month of
    claim activity
• All claims will be processed within approximately 5 days of receipt
of all required documentation
• Claims will receive one of the following status types once
processed:
    ƒ   Approved
    ƒ   Missing Document
    ƒ   Declined (either for content or too late to submit).
    ƒ   Insufficient Funds
• A letter will be e-mailed to the Dealership if claim status is:
    ƒ Missing Document
    ƒ Declined
    ƒ Insufficient Funds
• Dealers will have an additional 30 days to submit missing
documentation

Reimbursement Process

• Chrysler will reimburse through the dealer Parts Account
    ƒ Normal reimbursement timing will be twice a month
    ƒ All “approved to pay” claims will be paid approximately the 2nd
    and 4th Tuesday of the month

• To increase the likelihood of a credit posting the same month as
the claim submission, claims and all required documentation should
be sent to Program Headquarters as early in the month as
possible

• Scenario 1
Claim sent to Headquarters:      Claim approved:        Claim reimbursed:
January 4                        January 11             January 26

 • Scenario 2
Claim sent to Headquarters:      Claim approved:        Claim reimbursed:
January 18                       January 25             February 9

Pre-Approval Process

•Advertising can be submitted to Program Headquarters prior to
publication or airing
   ƒ Dealer or agency can submit
• No-charge
• Unlimited use
• Ensures advertising content will be eligible for reimbursement
• Turnaround time – 24 hours or less

Eligible Media

•   Eligible Media
     ƒ TV & Cable
     ƒ Radio
     ƒ Newspapers
     ƒ Magazines
     ƒ Direct Mail / Circulars
     ƒ Billboards
     ƒ Internet Advertising
         o   Search engine marketing
         o   Banner ads
         o   Must be signed up for basic Chrysler Digital Website to
             receive reimbursement for Internet Advertising
         o   Not eligible: Dealer web sites and lead generators

•   Fees Not Eligible for Reimbursement
     ƒ Agency Fees and Commission
     ƒ Production Costs

Required Documentation

 Television:     The storyboard or script imprinted with the ANA/TVB or ANAS/CAB (cable) signed by a
                 station official and notarized by someone other than the official plus an original station invoice
                 reflecting dates, times, cost of each spot and any earned discounts or agency
                 commission (including the agency name).

 Radio:          The script imprinted with the ANA/RAB signed by the station official and notarized by
                 someone other than the official plus an original station invoice reflecting dates, times,
                 cost of each spot and any earned discounts or agency commission
                 (including the agency name).

 Newspapers: The actual newspaper advertisement bearing the publication name and ad date plus an
             original publisher’s invoice reflecting the ad size, cost

Direct Mail    An original mail piece, along with an original printer’s invoice reflecting quantity and cost
and Circulars: as well as postal receipts reflecting the quantity mailed and mailing cost.

 Internet:        For web banner advertising, the required documentation is the printout of the Internet
                 creative and an original invoice. For search engine marketing, the following documentation
                 is required: the invoice from the search engine company reflecting the costs incurred, a list
                 of the key words purchased on the search engine and a screen shot of the search engine
                 site showing a successful search using one of the key words.

 Billboard:      An onsite photograph of the installed billboard plus an original invoice reflecting the location,
                 number of billboards, posting dates and costs.

Advertising Rules

1. 100% of the ad or spot must be allocated to support NEW or
   CPOV Chrysler, Jeep or Dodge vehicle advertising. No
   combined ads with any other manufacturer will qualify.

2. At least 75% of the ad space (or running time) must be
   dedicated to NEW Chrysler, Jeep or Dodge vehicle
   advertising, and up to 25% of the ad space (or running
   time) can be dedicated to CPOV Chrysler, Jeep or
   Dodge vehicle advertising. Only dealers that have either
   completed a CPOV sale or retained CPOV inventory during
   the month that the advertising ran may advertise CPOV
   vehicles.

Advertising Rules

    1

1

        5   TV Spot with other
            manufacturers

Advertising Rules

1
    Direct mail piece
    with service offers

Advertising Rules

3. The NEW vehicle portion (or message)   4. The CPOV portion of
   of the ad or spot must be clearly         the ad or spot must
   separated from the CPOV portion,with      include the CPOV
   a solid, uninterrupted box or line.       logo.

       3                                                       4

                   Newspaper ad with no separation
                   and no CPOV logo

Advertising Rules

5. The ad or spot must include all Chrysler Group logos
   representing the dealership’s franchise(s) or a national or
   regional campaign logo.

  6

                                             5
           Newspaper ad with no logos and
           used vehicles.

Advertising Rules

6. No traditional used vehicles may be present in the advertising. If
    traditional used vehicles are present anywhere in the ad, the
    entire ad will be ineligible for reimbursement.

                                                       6

                                                           Newspaper
                                                           ad with
                                                           used
                                                           vehicles

Approved Advertising Examples

Getting Started

• Opt-In Form
    ƒ Dealers need to complete and submit opt-in form prior to sending in a
    claim or a pre-approval.

• Fact Sheet
    ƒ All program details in Fact Sheet

• October Budgets from Sept. sales
   ƒ Budget amounts for both funds will be/were mailed to each dealer
   principal at the beginning of October.

• Web Site
   ƒ www.chryslerpap.com
   ƒ Will be live very end of October/early November – you will be
   notified
   ƒ All forms and fact sheet,along with Program Headquarters
   contact information, are posted on the site.

Getting Started

• Program Headquarters Contact Information

     Chrysler PAP Headquarters
     c/o NSI
     2300 Locust Street
     St. Louis, MO 63103
     866-980-8665 (phone)
     866-803-0166 (fax)
     chryslercoop@nsi1919.com
     www.chryslerpap.com