DEALER MARKET INVESTMENT PROGRAM

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Fiat Chrysler Automobiles is seeking high-potential candidates for placement within our dealer network via a new Dealer Market Investment Program. Once qualified, entrepreneurial-minded candidates make a low capital investment for the opportunity, with key lenders delivering the necessary capital to support the venture.

FCA DEALER CANDIDATE QUALIFICATION CRITERIA

APTITUDE

Strong candidates have extensive retail automotive knowledge and experience, as well as a proven track record of satisfactory sales/marketshare performance and successful dealership operation. Candidates must submit the following dealership performance metrics for three (3) years: CYTD, plus two (2) prior years. These performance metrics must compare to the standards chosen by the manufacturer they represent.

  • Annual Sales Effectiveness figures over the last 3 years
  • Annual Registration Effectiveness figures over the last 3 years

The minimum standard is performance that is at or above 100% of sales expectancy (measured at state average).

CUSTOMER SATISFACTION

The candidate and proposed management team must demonstrate their total dedication to providing great customer experience. Dealership performance in customer experience must be verified by:

  • Two (2) years of sales customer experience index scores
  • Two (2) years of sales customer experience index scores

The minimum standard is performance that is at or above 100 percent of group average.

FINANCIALS

By submitting the information below, candidates will demonstrate their strong financial standing to support required dealership capitalization and subsequent loan paybacks.

  • Visible sales and profit forecast and comprehensive operating plan
  • Sufficient unencumbered capital to meet investment required
  • Excellent reputation among wholesale and retail finance sources
  • Access to funding resources for real estate and any necessary facility upgrades

Dealership Performance is verified by 100 percent of established Working Capital guides for two full years.

LEADERSHIP & CHARACTER

Candidates should have sound personal and financial reputations, as well as the respect of their community. Leadership and character will be verified by:

  • Independent background check
  • Affiliations, awards and activity in local community
  • Ethical merchandising, advertising, and trade practices
PROGRAM RULES & REQUIREMENTS

If a candidate meets qualification criteria, and an FCA dealership is purchased/established via this program, the following rules and requirements, among others, apply:

  • Sign a personal guarantee
  • Provide site option to FCA for 30 years Support FCA products and services
  • Submit evidence of dealership performance by 100 percent of established Working Capital guides for two full years
  • Not sell dealership assets or burden the dealership with additional debt, including mortgage, until both loans are paid in full
  • Agree to right of first refusal with FCA for sale of dealership
  • All prospective candidates must participate in candidate assessment programs offered by lending institutions and a dealer development program through FCA Performance Institute

Other terms and conditions apply.

INVESTMENT STRUCTURE

Low Capital/High Potential

DEALER EQUITY INVESTMENT

Candidates provide a minimum 15% of unencumbered liquid total investment, inclusive of goodwill. Real estate is seperately funded.

ALLY® OR CHRYSLER CAPITAL® INVESTMENT

Ally or Chrysler Capital contributes 85% of the dealership investment through two capital loans.

Primary Capital Loan (Ally or Chrysler Capital)
  • Secured by dealership assets
  • 5-year fixed interest rate term loan
  • Monthly principal and interest payments with no prepayment penalty
  • Must be paid off before principal payment of the subordinated loan can be processed
Subordinated Loan* (Ally or Chrysler Capital)
  • Interest-only payments while primary capital loan is outstanding
  • Once primary loan is paid off, principal and interest payments begin with no prepayment penalty
  • Refinance of the Ally or Chrysler Capital subordinated loan will be required when scaled dealership assets support refinancing to a standard capital loan
  • Guaranteed by FCA up to 35%
Dealer Equity/Working Capital infographic - investment(15% at $750 thousand)/contribution(85% at $4.25 million) of $5 million | Lower half conveys Real estate investment of $5 million split by Candidate(5% at $250 thousand), FCA (15% at $750 thousand) and Financial Insitution (80% at $4 million)
FREQUENTLY ASKED QUESTIONS
Is this program available to all market types in the USA?

A. This program is only available to active dealer candidates in US markets that have a 750 or more annual ales opportunity (CJDR), and 350 or more annual sales opportunity for Alfa Romeo/Maserati combined.

What if I meet most, but not all of the eligibility criteria, will I be able to qualify for the program?

A. No. Only candidates meeting or exceeding the requirements and performance measurements will qualify for this program.

Will I be able to choose which dealership I’d like to acquire, or which open point I’d like to establish in?

A. Opportunities in the US market are very limited. FCA encourages prospective candidates to become aware of potential buy/sell opportunities by building relationships with existing dealers in markets of interest. With regard to new establishments, since those opportunities are few across the US, candidates can choose whether they’d like to pursue one of these opportunities.

DISCLAIMER

The retail automotive business is a highly competitive, high-risk business; as such, Fiat Chrysler Automobiles cannot guarantee the profitability of the dealership corporation. Candidates must understand that actual success or failure in the cyclical retail automotive business depends primarily on the candidates’ ability to manage the business and that, if a candidate is accepted for participation in the FCA Dealer Market Investment Program, his or her investment is at risk. All candidate selection and placement within the network is solely at FCA’s discretion.