A first-in-the-industry program that allows Fiat Chrysler dealership employees to earn a cost-free college education is expected to go nationwide within the next few weeks.
Officials with Fiat Chrysler Automobiles say the program, which was developed in collaboration with Strayer University, will help the company attract and retain top employees.
“Our business can be tough at times, and we struggle with retention. Some areas in the dealership are worse than others, but retention of good people is going to be critical for us to improve our volume year-over-year,” said John Fox, who leads dealer training for FCA.
The company first rolled out the program in May to about 350 dealers in the Southeast. Participation is voluntary for dealerships. About a third of those eligible to participate have signed on, the company said.
Among those who are participating is Ralph Mahalak, Jr., who co-owns four dealerships in Florida in addition to stores in Michigan and Ohio.
“It sets us apart from the crowd. We like the concept. We want to have people on board who want to move upward and onward,” he said. “You want to hire somebody that wants your job, that wants to grow and develop.”
Mr. Mahalak is eager to offer the program to employees in Ohio and Michigan. He said there’s considerable interest, particularly from employees at Buckeye Chrysler Dodge Jeep Ram in Shelby, Ohio. Among his six stores, he has about 200 employees.
Mr. Fox said the company hasn’t set a date for the nationwide rollout, but it will likely happen in the next 45 days. Fiat Chrysler has about 2,600 U.S. dealerships with nearly 120,000 employees.
Other local dealers say they haven’t yet received much information, but are interested in the program.
The company touts the program as completely tuition-free and debt-free. Participating dealers pay a set monthly fee that covers a portion of the tuition costs and the manufacturer covers the rest.
Officials didn’t disclose what dealers must pay to participate, but dealers say it’s reasonable.
Strayer is a fully accredited, for-profit university based in Virginia with 80 campuses across 15 states and the District of Columbia, though it also has a large online presence. FCA officials say it’s up to employees whether they do online classes or attend one of the campuses.
Strayer has no campuses in Ohio or Michigan; the closest to the Toledo area are in Pennsylvania near Pittsburgh and in West Virginia near the Ohio River.
Officials say employees can enroll in any of about 40 degree programs that Strayer offers. The university is working with FCA to build industry-focused courses that would fit within larger degree programs, such as marketing.
Beyond improving current employees, Mr. Fox said Fiat Chrysler believes the program may help lure in people who would never have thought about working at a dealership before.
“People are not aware of the career opportunities in our dealerships,” he said. “That might be an office manager, that might be working in our parts area, that could be in commercial sales. There are huge career opportunities and we need to work to uncover those and provide the tools for dealers to do it in their own market.”
One of the benefits Fiat Chrysler hopes to reap is better customer service.
“When employees work to improve themselves their on-the-job performance improves,” Mr. Fox said.
Officials said about 150 employees are signed up to begin classes this fall. They hope that number will increase significantly as the program is expanded and becomes more well-known.
Contact Tyrel Linkhorn at tlinkhorn@theblade.com or 419-724-6134 or on Twitter @BladeAutoWriter.
First Published September 1, 2015, 4:00 a.m.