Tensions are rising in the Toyota retail network after the carmaker announced a new bonus structure that seriously impacts on dealers’ ability to make money.

The effect of the new scheme, which now centres on volume bonus payouts of 1.5% instead of standards-based bonuses of 4.4%, has been immediate, according to composites seen by AM.

They show that in January, traditionally the Toyota network’s third strongest financial trading month, dealers only averaged breakeven.

"This is the first time we have ever been as low as breakeven in January," one Toyota retail boss said. "It says to me that the network will lose money this year."

  • This story can be seen in full in the March 7 issue of AM. To subscribe to AM magazine click here or call 01733 468659.