Mopar® Dealer RewardsA COMPREHENSIVE GUIDE TO BUILDING BUSINESS AND PURCHASE DISCOUNTS

I N T R O D U C T I O N

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Mopar® is committed to assisting you in achieving your goals – that’s why

we offer the comprehensive Dealer Rewards Program and supplemental

initiatives focused on specific areas of the business. In the following

pages, we’ll detail how you can leverage Dealer Rewards to increase

customer loyalty and retention, improve the customer experience and,

ultimately, boost your bottom line.

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REWARDING GROWTH ACROSS THE DEALERSHIP.

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OUR INCENTIVE PHILOSOPHY

Dealer Rewards recognizes and rewards those dealers that take a holistic

approach to business growth, participating in many programs across departments

to achieve incremental sales. As the Mopar® Brand’s flagship incentive program,

the organization invests half of its overall incentive funding into Dealer Rewards –

because it is proven that engaged dealers realize widespread growth for mutual

benefit. The focus for this guide is to provide a walkthrough of the Dealer Rewards

incentive structure, program participation requirements and online tracking through

DealerCONNECT so you may maximize your business and discount potential.

It is worth noting that the other half of the Mopar Brand’s incentive investment

supports programs that celebrate unique dealership priorities, since we

understand that some dealers focus on different areas of the business. Collision

Rewards, Service Advisor Incentives, Accessory Excellence, Wholesale Rewards

and other programs fall into this group of eight total programs. These various

initiatives are provided to help each dealer pursue areas of specialty within the

dealership, both supporting the pursuit and rewarding successes with additional

incentives.

Learn more about Mopar programs through the Mopar Dealer Site,

available through DealerCONNECT, or call Mopar Program Headquarters

at (800) 356-3490.

For Dealer Rewards assistance, contact the call center at (800) 521-3186.

50%50%Dealer Rewards

Program- specific incentive programs

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In many ways, earning substantial discounts on your Mopar® Parts purchases couldn’t be easier.

Dealers must remain loyal to Mopar and be ARO compliant. Then, all it takes is a proactive

engagement in programs and initiatives proven to make dealerships successful across channels,

plus sales growth.

• Dealers can earn up to 9% in Dealer Rewards

• To maximize discount, dealers need to be Loyal, ARO Compliant and participating in at least four of the eight program qualifiers

• Purchase discounts are reduced to one-half if dealers are either Disloyal or Non-ARO Compliant

• Dealers can start with a base discount of 4% or 5% by earning the Hit & Win bonus discount. Dealers then have the opportunity to earn up to a 9% discount

• A dealer’s discount will be moved up to 8% if they reach six or seven of the eight qualifiers, they reach 100% of their sales objective and they are Customer First Award for Excellence (CFAFE) certified

• A dealer’s discount will be moved up to 9% from 8% if they reach all 10 qualifiers (eight program qualifiers plus Loyal and ARO Compliance) and if they reach 110% of their sales objective

METRICS MAKE THE DIFFERENCE.

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Below outlines an example scenario to provide an overview on how the Dealer Rewards discount is calculated. The

following pages will detail metrics, qualifications and bonus exceptions.

Metric Qualification

Oil PenetrationAchieve Oil Penetration target of at least $12.00 per unique FCA US LLC VIN, based on a rolling three-month period.

Total Service Hours Service Department open greater than 58 hours a week.

Express Lane OperationsObtain a validated Express Lane program status with qualified Express Lane signage.

Tire Penetration Achieve at least 10% Tire Penetration, based on a rolling three-month period.

Accessory Outbound Sales Penetration

Participate in the Mopar® Accessory Excellence Program and achieve Accessory and Custom Shop Outbound Sales PNUR of at least $300, based on a rolling three-month period.

Wholesale CertificationComply with wholesale certification requirements for either collision or mechanical and maintain certification.

wiADVISOR UtilizationSign up for wiADVISOR and achieve at least 70% utilization rate, based on a rolling three-month period.

MVP Service Lane Sales Penetration

Achieve service lane MVP sales (lube, oil and filter contracts considered only) per unique FCA US LLC VIN of at least $2.50, based on a rolling three-month period.

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PUT YOUR CUSTOMERS IN THE DRIVER’S SEAT.DEALER REWARDS METRICS THAT IMPROVE THE CUSTOMER EXPERIENCE.

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Mopar® Express LaneIt’s no secret that everyone leads busy lives. For

years, the aftermarket has made in-roads with OEM

customers by providing fast oil changes. That’s why

Mopar® has invested heavily in its own Express

Lane program – so that dealerships can seamlessly

integrate new processes to provide quick and

convenient oil changes and maintenance services.

Mopar Express Lane drives service opportunities from

both FCA and non-FCA vehicles, which allows you to

create strong relationships beyond the oil change –

keeping customers in-house.

Dealer Rewards Metric: Obtain a validated Express Lane program status with qualified Express Lane signage.

Enroll or track your Express Lane success

through the Mopar Dealer Site dashboard.

Total Service HoursAdding service hours to your week can go a long

way to ensuring customer loyalty. Late nights and

weekend service are common among competitive

repair shops and create a great opportunity for

your dealership to both keep up with customer

expectations and increase profits. Convenient hours

benefit your customers with busy weekday schedules

and allow for scheduling flexibility across the board

for dealership operations. Dealer Rewards Metric:

Service Department open greater than 58 hours a week.

Browse available sales support for your Saturday

Hours through the Service Drive Store.

wiADVISOR UtilizationDid you know dealers that leverage wiADVISOR

consistently achieve better customer satisfaction

scores, additional MVP contract sales, increased

customer retention and improved recall completions?

wiADVISOR provides a better customer experience,

allowing dealers to take care of customers directly

on the service lane with intuitive tablets. It also helps

establish consistent, successful processes throughout

the service department to boost profitability.

Dealer Rewards Metric: Sign up for wiADVISOR and achieve at least 70% utilization rate, based on a rolling three-month period.

View a wiADVISOR demo and see average

improvement stats on the program web page.

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DEALER REWARDS METRICS THAT INCREASE RETENTION AND LOYALTY.

THERE’S NOTHING AS REWARDING AS A RETURN CUSTOMER.

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Tire Penetration

It’s a fact: Tire purchase customers contribute double the

average profit, make twice as many lifetime visits and

purchase twice as many lifetime services. The benefits

stretch beyond your service department, too. These

customers are also 10% more likely to buy or lease

another vehicle from your dealership and stay with their

dealership 70% longer! The Mopar® TireWorks program

amplifies your tire sales efforts, with competitive pricing

(and price match guarantee), broad distribution with

multiple daily deliveries, sales training and more.

Dealer Rewards Metric: Achieve at least 10% Tire Penetration, based on a rolling three-month period.

For more information on the benefits of

Mopar TireWorks, visit here.

Oil Penetration

Oil is the lifeblood of your customers’ vehicles, and often

for service departments. The Mopar Bulk Oil program is

the easiest way to both purchase the product you need

to service oil change traffic and earn additional cash back

rewards for your dealership. Plus, the Mopar Dealer Site

features a dynamic dashboard that makes it

easy to track progress toward goals and see your cash

back performance at-a-glance, plus it offers quick links to

marketing and communications resources.

Dealer Rewards Metric: Achieve Oil Penetration target of at least $12.00 per unique FCA US LLC VIN, based on a rolling three-month period.

Learn more and track progress on the

Mopar Bulk Oil Program dashboard .

Mopar Vehicle Protection® (MVP) Service Lane Sales Penetration

The key to strengthening your customer relationships is

to have contact with your customers. Providing service

contracts for your customers typically leads to a service

retention increase. Lube, oil, filters — these are all great

areas of focus that are important to your customers and

can lead to regular traffic, increasing loyalty and profits.

Mopar offers a variety of contracts both in terms of

service and length of agreement, so you can help guide

customers to the MVP contract that’s the best fit.

Dealer Rewards Metric: Achieve MVP service lane sales (lube, oil and filter contracts considered only) per unique FCA US LLC VIN of at least $2.50, based on a rolling three-month period.

View MVP contracts, get marketing support and

capitalize on MSER incentives here.

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Dealer Rewards Metrics That Generate Revenue Growth.

THE BOTTOM LINE... IS THE BOTTOM LINE.

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THE BOTTOM LINE... IS THE BOTTOM LINE.

Accessory Outbound Sales Penetration

In order for the Accessory Outbound Sales Penetration metric to qualify, you must participate in the Accessory Excellence Program and achieve PNUR of at least $300 based on a rolling three-month period. Participation impacts broad earnings potential for Dealer Rewards, as well as additional parts discounts and program eligibility.

The Accessory Excellence Program was created to support the sales efforts of dealers who are actively engaged in selling Mopar® Accessories, and reward those efforts through a number of benefits — including individual incentive payouts.

Dealer Rewards Metric: Participate in the Mopar Accessory Excellence Program and achieve Accessory and Custom Shop Outbound Sales PNUR of at least $300, based on a rolling three-month period.

Visit the Accessory Excellence Program Headquarters here.

Wholesale Certification

The Wholesale Certified Dealer Program is designed to reward and support dealers that are focused on growing their wholesale mechanical and collision parts business.

Qualified enrolled dealers can earn Dealer Rewards qualifiers, Wholesale Rewards, Mopar One funds and Wholesale Compensation on select parts, plus direct mail and email parts offers in your dealership’s trade area. You will need to comply with the wholesale certification requirements for either mechanical or collision, or both.

Dealer Rewards Metric: Comply with wholesale certification requirements for either collision or mechanical and maintain certification.

Learn more about getting certified.

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MARKET WITH MOPAR® ONE.

HIGHLIGHTS AT A GLANCE Dealers can earn up to 1% of their outbound sales to help fund Mopar® service and parts marketing. Mopar One funds will only be awarded to dealers who remain at least 90% loyal.

MAXIMIZE YOUR MARKETING FUNDS Dealers earn Mopar One funds by qualifying for up to four metrics every month. Each metric rewards dealers 0.25%. These rewards can be used to help fund your retail, wholesale and accessory marketing initiatives. In summary, your dealership can earn up to 1 percent on outbound sales to support your service and parts marketing. Active marketing can grow your business as well as increase future Dealer Rewards earnings.

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Qualifier Earns Participation Requirement

Wholesale Certification 0.25% Comply with wholesale certification requirements for either collision or mechanical and maintain certification.

Customer First Award for Excellence (CFAFE) Certification

0.25% Must be certified by J.D. Power for the Customer First Award For Excellence (CFAFE) Program AND eligible for that quarter’s CFAFE quarterly incentive payments (“Certified CFAFE dealer”) to be eligible for the 0.25% Mopar One qualification.

Mopar One earning eligibility is determined once the previous quarter’s CFAFE winners are announced (typically 30 days beyond the quarter to address the appeals process).

Example: If a dealer qualifies for certification in the 1st quarter, they would become Mopar One Incentive eligible for that quarter in May based on the published Dealer List for the 1st quarter plus the following month after the 1st quarter has ended, once the appeals process closes.

Outbound (Dealer Rewards) Sales Target

0.25% Hit at least 100% of your sales objectives.

BONUS: If ALL of the above are met

0.25% If all of the above metrics are met, you will receive another 0.25%, bringing your total to 1%.

Be sure to stay engaged. We are committed to rewarding your involvement. Together, we can give our customers a great ownership experience.

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Purchase discounts are reduced to one-half if dealers are not Loyal or are not ARO Compliant. Dealers can start with a base discount of 4% or 5% by earning the Hit & Win bonus discount. Dealers then have the opportunity to earn up to a 9% discount.

A dealer’s discount will be moved up to 8% if they reach six or seven of the eight qualifiers, they reach 100% of their sales objective and they are Customer First Award for Excellence (CFAFE) certified. A dealer’s discount will be moved up to 9% from 8% if they reach all 10 qualifiers (eight program qualifiers plus Loyal and ARO Compliance) and if they reach 110% of their sales objective.

All reporting can be found on DealerCONNECT > Parts Tab > Mopar Dealer Rewards

PROGRAM QUALIFIERS

1. Oil Penetration

2. Total Service Hours

3. Express Lane Operations

4. Tire Penetration

5. Accessory Outbound Sales Penetration

6. Wholesale Certified

7. wiADVISOR Utilization

8. MVP Service Lane Sales Penetration

The Dealer Rewards Program allows dealers to earn up to 9% on parts purchases. Dealers are required to be Loyal, ARO Compliant and participating in at least four of the eight program qualifiers to earn a discount.

For more details about Loyalty, ARO and Hit & Win, please see the respective sections in FAQs.

SUMMING IT UP.

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Monthly Summary

This Monthly Summary depicts an example of dealer standing in the Dealer Rewards Program.

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Summarized Retail Invoices

This example report lists all retail and internal invoices for any given month.

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Summarized Wholesale Invoices

This report is a list of all wholesale invoices for any given month.

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Purchase/Discount Details

This report provides day-by-day detail of purchases and discounts for any given month.

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Qualification

The top left of the qualifications report displays the Loyalty calculation for the previous month. The bottom left of the report provides a daily status of achievement on the following three-month average. For this example, the report uses these five qualifiers:

1. Oil Penetration 2. Tire Penetration 3. Accessory Excellence and Outbound

Sales PNUR 4. wiADVISOR Utilization 5. MVP Service Lane Sales Penetration

The top right of the report is a static table that provides criteria on how much can be earned (up to 9% percent) based on the number of qualifiers reached and the sales level achieved. The bottom right lists all 10 qualifiers (eight program qualifiers plus Loyal and ARO Compliance), their applicable time periods and the program description.

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Summarized Loyalty Invoices

This report shows the loyalty calculation at the top, followed by non-Mopar® parts sold by invoice and repair order number. The bottom of the report lists all Loyalty invoices for any given month.

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ARO Compliance Summary ReportThis report lists ARO Compliance by week for the past five months.

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Growth Factor

This report shows the growth factor expected based on the market share percentage achieved.

Objective

This report shows the objective calculation by month for the current quarter.

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Potential Report

This report shows the dealer parts market potential based on assigned vehicles in operation (VIO).

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VIO Details

This report shows assigned VIOs by model year and top 10 ZIP codes.

* ZIP codes shown above are for example only

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Dealer Errors

This report lists transactions that have various errors (e.g., invoice number left blank or return quantity greater than 1,000). Dealers have the opportunity to correct errors and resend the data through DMS within that month and five days after month end.

Error Matrix

This error table describes the types of possible errors.

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To be eligible for Mopar® Parts incentive programs, parts must be:

• Applicable new or remanufactured FCA parts purchased from FCA, an authorized FCA dealer or a Mopar distributor • Sold as a retail, wholesale or internal transaction • Reported under the appropriate transaction type • Reported under the appropriate payment type • Purchased or sold during the specified program period • Shipped by close of the month or end of the specified program period • Invoiced by FCA by close of the month or end of the specified program period • Valued at Dealer Net at the time of the transaction • Accessory Custom Shop Package sales are reflected at the time reported via the New Vehicle Delivery Receipt (NVDR) system • FCA/Mopar Vehicle Protection® (MVP) service contracts

• Warranty part sales• Campaign part sales• Dealer-to-dealer (D2D) part sales• Used part sales• Non-Mopar/aftermarket part and accessory sales• Fraudulent or misrepresented Mopar Part sales• Drag Pak vehicles• Jeep® Wrangler JK8 kits• Merchandising materials• Third-party service contracts or Non-FCA/Mopar Vehicle Protection (MVP) service contracts • Miscellaneous parts as specified under a particular incentive program

Eligible Parts/Accessories/Service Contracts Sales and Purchases

Ineligible Parts/Accessories/Service Contracts Sales and Purchases

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SALES

Q. What is the definition of eligible Total Sales?

A. Eligible Total Sales is the sum of Retail, Wholesale and Internal sales of Mopar® Parts. The calculation is evaluated at Dealer Net at time of transaction. Warranty sales are excluded. Dealers also receive credit for Custom Shop and in-plant installed accessories (when the vehicle is sold - NVDR) and for Mopar Parts sold on FCA/MVP service contract repair orders.

Q. At what time is a sale calculated in the Dealer Rewards program?

A. Program calculations are based on the close date of your invoices/repair orders. It is imperative to close all outstanding invoices/repair orders within the calendar month.

DEALER REWARDS FAQSThese Frequently Asked Questions (FAQs) are designed to help you understand the programs.

Q. Am I able to view all repair order and invoice detail considered when calculating my sales?

A. Yes. Sales detail can be viewed on DealerCONNECT > Parts > Reports > Incentive Reporting > Mopar Dealer Rewards > Summarized Retail Invoices, or Summarized Wholesale Invoices.

Q. How are customer returns of Mopar Parts handled?

A. These returns are an offset to your total sales.

Q. Are my reported sales based on the calendar month?

A. Yes. All reported sales are based on closed invoices and repair orders during the calendar month.

Q. Will I “lose” sales if there is a delay between when an invoice is closed and when Mopar receives the record?

A. Mopar will allow dealers five days to submit all invoices, counter tickets and repair orders that were closed during the previous month. Calculations for final incentive payments are performed on the 6th day of every month.

Q. Since final reports are not available until the 6th of every month, when will I start to receive the discount rate earned?

A. The discount rate earned from the prior month’s performance is applied to eligible purchases beginning the 7th of the next month. For example, if you earned a 6% discount in March, that 6% discount will be applied to all eligible purchases from April 7 through May 6.

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Sales Objective

Q. How is my monthly objective calculated?

A. Sales from the same month prior year (with pricing factor applied) are used to calculate your base sales rate. The monthly sales objective is calculated by applying a growth factor to your base sales rate, then multiplying the rate by the number of selling days in the month. In the absence of sales from the same month last year, prior quarter sales will be used to calculate your objective.

Q. How is my sales day rate calculated?

A. Your sales day rate is calculated by taking the total sales during a period of time and dividing by the number of sales days during that period. For example, if you sold $315,000 worth of parts during the previous three months, and there were 63 selling days, then your average sales day rate is $5,000 per day (or $315,000 divided by 63 days).

Q. Does the sales day rate include weekend selling days?

A. No. The sales day rate is calculated based on five-day weeks (excluding holidays); however, all your weekend and holiday sales count in achieving your objective.

Q. How are vehicles in operation (VIOs) utilized in the Dealer Rewards program?

A. VIOs within your Area of Responsibility (also known as Trade Zone) for the prior 10 model years are used to determine your annual parts sales potential. Your sales are then compared against your potential to determine market share. Your market share dictates the growth factor that is used to set the monthly sales objective. The higher your market share, the lower the growth expectation.

Loyalty

Q. How is Loyalty calculated?

A. The Loyalty metric is the percentage of Mopar® Parts vs. total parts used in the repair of FCA US LLC vehicles. All customer pay and internal repair orders are considered. A Loyalty score of 90% or higher is currently required to qualify for maximum rewards.

Q. Why are oil kits recognized as Non-Mopar parts for the Dealer Rewards Loyalty calculation?

A. Mopar relies on official Mopar part numbers, which are contained in the Mopar Parts Master File. Although the oil kits may contain Genuine Mopar Parts, the oil kit itself gets identified as a Non-Mopar part number in the Loyalty calculation.

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ARO

Q. How is ARO Compliance calculated?

A. ARO Compliance is calculated by dividing the number of ARO BSL (Best Stocking Level) proposals accepted by the number of total proposals sent to the dealership. Additional compliance credit is given for accepting recommendations for the ARO Essentials program. Dealers must be enrolled in 5300’s ARO program and have a compliance score above 90% in order to receive maximum program rewards.

Q. Why is ARO Compliance required to receive maximum rewards?

A. 5300’s ARO application has proven to be a very successful tool in managing dealership inventory. ARO-compliant dealers enjoy a leaner inventory with lower obsolescence, a higher turn rate and better off-the-shelf fill.

Q. How do I enroll in the ARO program?

A. Contact a dealer advisor at email: 5300ARO@fcagroup.com.

Q. Are the Loyalty and ARO Compliance qualifiers based on my current or historical performance?

A. Your Loyalty and ARO Compliance from the prior month, together with the other Dealer Rewards Metrics, will be used to determine if you are qualified to earn maximum rewards.

Q. Since last month’s ARO Compliance score dictates my reward potential, how long will it take me to qualify for maximum rewards if I just enrolled in ARO?

A. Mopar® will provide all new ARO dealers a grace period from the date of enrollment. The dealer is considered compliant in the month of enrollment and the following month. For the purposes of Dealer Rewards, the dealer will also be considered compliant for the previous month as well. For example, if the dealership enrolls in ARO in January, the dealer is considered compliant for December, January and February. After the end of that grace period, the dealership must maintain 90% compliance to earn maximum rewards.

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Miscellaneous

Q. Are all orders eligible for Dealer Rewards discounts?

A. The discount rate is applied to every part you purchase (except promotional orders – order types P & G). Details will appear on your weekly parts invoice (similar to the way stock order discounts were traditionally reported). Part exceptions include Drag Pak vehicle and parts, Jeep® Wrangler JK8 kit, campaign parts, merchandising materials and other miscellaneous parts.

Q. How are part returns to Mopar® handled?

A. Eligible parts sales and purchases are reduced by parts returns. Cycle, ARO, MRA and Dealer Generated return reimbursements will be discounted by the rewards earned at time of purchase. Guaranteed Returns and Return Allowance Returns will be discounted at your current reward rate.

Q. How do I record an Inventory Adjustment, or remove the parts from the system inventory for an MRA transaction, without creating a Sale or Return transaction affecting Dealer Rewards?

A. Do not create an RO or Invoice to make an Inventory Adjustment or to remove the inventory being returned back to Mopar. If you need to make an Inventory Adjustment, you also need to remove the inventory from your Dealer Service Provider (DSP) using the DSP Adjustment line function. This function usually allows for a Memo Line description to account for the reason the adjustment is being made. (Note: Items lost, stolen, damaged or broken would fall into the waste category.)

After an MRA is processed in DealerCONNECT, you need to remove the inventory from the DSP using the DSP MRA Process. Please follow your DSP MRA Process to ensure your inventory is properly removed. If you have any questions, or if your DSP does not have this capability, please contact your ARO Dealer Advisor.

Q. What are the minimum requirements to receive the 2% Guarantee based on Participation Discount?

A. In order to qualify for the 2% Guarantee based on Participation Discount, dealers must meet all of the following criteria:

• At least 90% Loyal • At least 90% ARO Compliant • Qualify in at least four of the remaining eight Dealer Rewards metrics • Earned discount must be less than 2%

Q. How does the “Hit & Win” Bonus Discount work?

A. To be eligible for the “Hit & Win” Bonus, you must have a Loyalty Score of at least 90%, ARO Score of at least 90% and at least four of the eight Dealer Rewards metrics. The table below illustrates how the “Hit & Win” Bonus Discount is determined:

A dealer will receive the greater of the Sales or the Market Share Bonus Discount for which they qualified.

Prior Month’s Total Monthly SalesPrior Month’s Market Share

Bonus Discount %

Total Monthly Sales of $750,000 or more Not Applicable 5%

Total Monthly Sales between $400,000 and $749,999

Not Applicable 4%

Not Applicable 100% or Greater 4%

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©2019 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep and Mopar are registered trademarks of FCA US LLC.

For Dealer Rewards assistance, contact the call center at: (800) 521-3186.

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