I will answer it, MR2048. I work at several dealers. One, I have parts adjust the parts, and I change the labor sale amount. So, if the oil change cost $25 bucks, and the factory reimburses $20, we have a negative labor sale.
Another dealer, they close out wrong, for, say $38.00, and if they pay $20, I write $9 off to parts, $9 off to service. 50/50 split.
I also dislike the oil change programs. At the one dealer that I do the split, I encourage the service advisors to sell ones that pay more than the minimum. I work for Chrysler dealers, and the loser plans are Essential Care plans. I try to have them sell the ones that pay more.
The worst is diesel plans. We really take losses on those.
The bad thing is that two of my dealers sell the s$%*t out of them. And are encouraged to do so. It keeps me, as an administrator busy, and a a lot of the people that come in get oilchanges only.
Dealers need to come together and confront the factory on these loser plans, to delete them altogether. Oh, one thing that hasn't been mentioned. Service managers encourage selling the plans because they get kickbacks from the factory. Like trips to nice locations(Orlando, FL, Hawaii) and if they don't want that, they can cash out.