Auditing sales incentive contracts for a major manufacturer
Our client is an international car manufacturer with an extensive sales network in France which is almost exclusively composed of franchisees.
Our client was looking for an audit partner capable of ensuring that the terms of the sales incentive contracts, binding our client to its dealers, were correctly applied. The volume of control to perform and the special contractual features regarding the automotive dealers involved, required a collaborative approach and the modelling of a specific methodology. Based on a 20 year experience, Mazars was selected for its in-depth commercial means knowledge and capacity to provide customized added value.
A specific and innovative methodology was developed, relying in particular on dedicated IT tools, which allowed the Mazars team to scan several aspects of commercial actions, regardless of the automotive dealer involved. After identifying numerous misstatements and analyzing their origins, they were able to suggest improvements to limit risks related to the scope.
Mazars’ specific approach, combined with our own expertise and dedicated resources, led to the amendment of substantial bonuses granted to dealers based on incorrect self-statements, at a very low cost regarding savings for the car manufacturer.
All automotive groups possess a captive finance subsidiary enabling them to finance some of their business activities, including loans to customers. For example, PSA has bank PSA Finance and General Motors, GMAC. These financial entities can manage up to 30% of vehicle purchases, but this differs depending on manufacturers and the market situation.
Worldwide bribery risk assessment
Our client is a major automotive OEM. Although production largely takes place in the UK, the company has a presence in the majority of countries across the world either through purchasing activity, direct sales or through its franchise network of dealerships. Mazars was selected to review the company’s ethical processes and procedures with reference to new legislation introduced in the UK.
Reorganised, checked and certified inventory
Our client sells buses produced by the parent company and performs repairs and maintenance for the Group's buses. The service quality is of high importance as the brands serviced are premium brands. Mazars designed new procedures for stocktaking, staff training and warehouse organisation for the client.