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one month can take back 6k to 8k for car sales. not bad. the toyota brand alrdy sells for itself SINGAPORE - In what may be another sign that the motor trade is bracing for a tailspin, Toyota agent Borneo Motors is planning to cut commissions paid to its sales staff - the first time it is doing so. According to sales executives who spoke on condition of anonymity, the Inchcape company is proposing to cut commissions by $100 to $350 per car. At the same time, it is looking to raise sales targets. "Easily, our monthly income will fall by $2,000," said one salesman, noting that sales staff's income averaged between $6,000 and $8,000 a month. Another said the cut was supposed to have been taken effect last month, but "it did not". The Straits Times understands this is because of the union, which has asked the Ministry of Manpower (MOM) to intervene. An MOM spokesman said the ministry has "received a request from the Singapore Manual & Mercantile Workers' Union to conciliate a dispute involving its sales consultant members and Borneo Motors (Singapore) Pte Ltd over a proposed cut in commission and an increase in sales quota". "The conciliation process is ongoing," the spokesman added. "Both union and Borneo Motors' management are engaging actively in the conciliation process. Progress has been made on some issues but more work needs to be done on remaining issues where parties' positions differ." Borneo Motors' managing director Jasmmine Wong said: "We are in the midst of discussions which we have every two years. We have up to the end of the year to reach a conclusion. Nothing has been decided." Ms Wong - part of a new management team which replaced several veterans laid off two years ago - pointed out that the sales staff wanted "higher commissions and lower targets". She said this was not feasible in a market which is expected to shrink over the next two years on account of smaller certificate of entitlement quotas. On Monday (May 6), Nissan agent Tan Chong Motor decided to close its Bukit Timah showroom because of a shrinking number of walk-in customers. "My priority is to keep jobs," Ms Wong said. She added that the company had also put in a system which generates leads for its sales staff, as well as a car delivery division to relieve sales staff from non-sales duties. But a sales veteran said: "If the company is losing money, then we understand. But that is not the situation, and in any case, it is unfair to target sales staff alone." Borneo remains one of UK-listed Inchcape's top profit generators. Last year, it attained Toyota's Triple Crown award for industry-leading sales in passenger vehicle, commercial vehicle and taxi sales. According to two previous managing directors, Borneo has not had a sales commission cut before.
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