Ford Motor Company. ***Updated*** The John Deere Independent Dealers
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1 Ford Motor Company 2014 Model Year Competitive Price Allowance Announcement ***Updated*** Exclusively For: The John Deere Independent Dealers
2 Martin Kopera Chicago Regional Office National Account Manager 3025 Highland Parkway North American Fleet Downers Grove, IL Lease and Remarketing Operations December 14, 2013 Dear John Deere Independent Dealer Principals and General Managers We are pleased to announce that Ford Motor Company and The John Deere Independent Dealers have successfully renewed the Ford Fleet Purchase Program for the 2014 program year. Due to the continued success of the program, the Competitive Price Allowances (CPA) on high volume model cars, trucks, and vans has once again been approved for 2014 model Ford and Lincoln products! As always, feel free to call with any questions or comments you might have. Eligible Vehicles New 2014 model year Ford and Lincoln vehicles that are sold by Ford or Lincoln dealers to John Deere Independent Dealers. The 2014 CPA season begins on July 1st, Must be registered in the United States. Must be registered to the John Deere Independent Dealer or the Dealer Principal (51% ownership of greater). Must remain in-service requirement for 12 months or 20,000 miles (whichever comes first). Customers who violate the minimum in-service requirements are subject to fleet incentive chargeback and/or cancellation of their FIN code. Must be reported sold fleet, using your Fleet Identification Number (FIN) LF018 and coded with 56A to count towards volume requirements and/or be eligible for program allowances. Ineligible Vehicles - The CPA program outlined in this letter is in lieu of customer retail programs and regional Preferred Equipment Package (PEP) package discounts. Payment of a retail incentive on a vehicle will make that vehicle ineligible for CPA (56A) and National Fleet Incentive payments. To ensure CPA payment eligibility, instruct your dealer NOT to utilize retail, commercial account programs, dealer cash or National Fleet Incentive on your vehicles. This restriction applies to both units ordered from production and out-ofstock purchases. Incentive Payments If the vehicle(s) are ordered from the factory (not taken from dealer inventory) the stated CPA incentives will be included on the invoice at time of delivery. For purchases taken from inventory (out of stock purchases), the stated CPA incentive will be applied after the vehicle price is agreed upon between the selling dealer and the customer. 2
3 Additional Program Benefits & Resources For additional information regarding this program, please contact Martin Kopera at or In addition to Martin Kopera, you can contact the Fleet Customer Information Center (FCIC) FLEET - Available 8:30 am to 5:00 pm CST Monday through Friday. Roadside Assistance is included on all 2014 Ford and Lincoln model year cars and light trucks by calling FORD, 24 hours a day, 365 days a year for three years or 36,000 miles (four years or unlimited miles for Lincoln). The following services are provided: spare tire mounting, fuel delivery, jump starts and lockout problems. Under this program, Ford will also cover towing (to the nearest Ford or Lincoln dealership). Warranty - a minimum three years or 36,000 miles, bumper to bumper warranty. Plus a no-deductible, fully transferable powertrain (engine, transmission, front and rear wheel drive components) limited warranty on 2014 Ford vehicles is five years or 60,000 miles. Lincoln s 2014 (4-year/50,000 mile bumper-to-bumper) powertrain limited warranty is six years or 70,000 miles. Ford X-Plan Program Allowance Ford Motor Company is also pleased to extend to the Independent John Deere Dealers the rights and privileges of the Ford X-Plan Program which allows any employees of said dealerships to receive the associated price concessions offered by the Ford X-Plan Program. This extended offer is bound by the rules and consideration contained within the Ford X-Plan program language and full compliance are required. What your EMPLOYEES can do at after logging in using your company's unique partner code (LF018) Research vehicle specific X-Plan pricing and incentives Review the latest vehicle product information View the complete X-Plan rules, as well as, helpful FAQ's Generate Personal Identification Numbers (PINs) for exclusive X-Plan vehicle pricing Employees can visit this site to see what exclusive pricing Ford has to offer! We look forward to providing vehicles that will service the needs of the John Deere Independent Dealers. Thank you for your business! Sincerely, Martin Kopera National Account Manager Chicago North 3
4 Attachment I Competitive Price Allowance Ford Motor Company will provide the following allowances for eligible vehicles purchased or leased by John Deere Independent Dealers for use in its operations. Please ensure that your FIN, LF018 and option code "56A" are placed on all units ordered for your fleet. CPA will be provided based upon delivery information provided to Ford Motor Company by your dealer or fleet management company. Complete ordering instructions are detailed on Attachment II and should be provided to your ordering dealer or fleet management company. Ford reserves the right to offset against and recoup any amount due to it, against any payments due to Ford under this program. Program Allowances Off-Invoice Once a CPA offer is established in the Ford system, the CPA will be shown as a credit on the initial dealer invoice. In the event this credit is missing, payment will be made directly to the selling dealer once the unit is reported sold. Ford Motor Company is pleased to present the following Competitive Price Allowance (CPA) for the 2014 Model Year: Eligible Vehicle Lines Body Model Incentive CMAX Energi P5C 2014 $1000 CMAX SE P5A 2014 $1200 CMAX SEL P5B 2014 $1900 Focus ALL 2014 $2500 Focus BEV BEV 2014 $0 Focus S 4DR Sedan P3E 2014 $1700 Fusion ALL 2014 $2300 Fusion ALL 2015 $2300 Fusion Hybrid HYB 2014 $1000 Fusion Hybrid HYB 2015 $1000 MKS ALL 2014 $3000 MKZ ALL 2014 $3100 MKZ Hybrid HYB 2014 $0 Taurus ALL 2014 $3300 Econoline ALL 2014 $4800 Edge ALL 2014 $2900 Escape ALL 2014 $1700 Expedition ALL 2014 $4700 Explorer ALL 2014 $3000 Explorer ALL 2015 $3000 F-Series Super Duty F250-F550 ALL 2014 $5700 F-Series Super Duty F250-F550 ALL 2015 $5700 F150 ALL 2014 $5000 F650 Diesel ALL 2015 $6700 F650 Gas 65G 2015 $5500 F750 Diesel ALL 2015 $7200 Flex ALL 2014 $3000 MKT ALL 2014 $2800 MKX ALL 2014 $3000 Motor Home ALL 2014 $300 Navigator ALL 2014 $5500 Transit Connect ALL 2014 $1100 4
5 Attachment II FORD DEALER/FLEET MANAGEMENT COMPANY ORDERING INSTRUCTIONS It is important to note that the ordering dealer or fleet management company should be instructed to take the following general actions to ensure prompt payment of eligible Ford Motor Company incentives: Use the proper Fleet Identification Number (FIN), LF018, on each order purchased by John Deere Dealers. All units must be reported sold fleet and coded "56A" 56A is not compatible with any Retail, Commercial Account, Dealer Cash, Retail Greater Than Fleet or National Fleet Incentive programs, unless otherwise stated in the specific program. ORDERED UNITS Once the CPA deal has been established in the Ford system, CONCEPS will automatically populate "56A" on all vehicle lines associated with the FIN LF018. If orders are placed before the CPA offer is established in the Ford system, the CPA credit will not be off-invoice. In this case, payment will be directed to the selling dealer, once the unit is reported sold. Ford Dealers/Fleet Management Companies will not be able to remove the "56A" code from an order. Dealers/Fleet Management Companies should contact the FCIC at Fleet ( ) pick #2 to request authorization to have "56A" removed. Ford Dealers/Fleet Management Companies must report the vehicle sold to the proper end user FIN, LF018 using the applicable fleet delivery type (i.e. Delivery type "7" for sale of unit from dealer to fleet customer. Delivery type "D" for sale of unit to a leasing company for subsequent lease to the fleet customer). OUT OF STOCK PURCHASES Dealers/Fleet Management Companies must add the code "56A" in CONCEPS to all stock units reported sold/reinvoiced to the independent John Deere Dealer. IMPORTANT! CHANGE IN DEALER SALES REPORTING TO FORD Fin Code LF018 will generate a corporate address for John Deere. While you are still in CONCEPS, repopulate the address section with the address of the local John Deere Dealer purchasing the vehicle AND insert the name of the John Deere Dealer as the name. Then press Enter and PF4 to submit and to retain the change. This is important to ensure the entry corresponds to the name and address on the vehicle title and allows vehicle warranty/recall information to go to the correct John Deere Dealer address. Ford Dealers/Fleet Management Companies must report the vehicle sold to the proper end user FIN, LF018 using the applicable fleet delivery type (i.e. Delivery type "7" for sale of unit from dealer to fleet customer. Delivery type "D" for sale of unit to a leasing company for subsequent lease to the fleet customer). Use of 56A on units previously paid Retail, Dealer Cash, Retail Greater Than Fleet, or National Fleet Incentive Program (56M) incentives could result in a dealer charge back. John Deere has elected to assign their CPA incentives to the selling dealer. CPA will be paid to the selling dealer, via the Fleet Integrated Marketing Payment Statement (FIMPS) in the form of a direct statement/check, on the last business day of each month (provided that the vehicle has been reported sold by the third Wednesday of the respective month). Ford dealers can confirm the Ford Fleet reimbursement of the CPA funds by calling FLEET ( ) and selecting 2 from the voice menu option. 5
6 FLEET PAYMENT AND ADJUSTMENT TIMING LIMITATIONS Automatic payments will be made to our CPA incentive fleet customers or assignee. Any issues related to automatic CPA payments must be claimed within two years of the date of sale or lease of a vehicle. CPA fleet account payment "adjustments" resulting from North American Sales Accounting audit reviews must occur within the latter of: - 2 years from the date the CPA incentive was paid -or- - 2 years from the latter of the sale date or the date the vehicle is reported sold. 6
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