what's with the DSR's all the time?

[sallen1]

We just got another DSR for our shop in west covina, it's the 2nd one since Jan 1. The interesting thing is that since 12/98 we've been UNDER the peer and national expense per vin. I was under the assumption that you had to have 'excess' expense over a period of time inorder to get on the _hit list. I did get the info that there are several self audits that happen before the police come in, so we have a little time. Our documentation is great, I just don't get it.

Have any of you been under this scrutiny lately? For this DSR, even our new service rep was suprised.

scott

[robc]

Scott, are you saying that your past two DSR's were dated Dec 31, 98 (received in Jan. 99) and Mar 31, 99 (recieved in April)-- or -- did you just get one dated April 30, 1999?

The reason why I ask is that I was told that the system is still using 3 month cycles and it began in Jan, therefore March 31, 99 is the first one that was released, next will be June 31 ... if your reports are dated differently I'd liked to know.

Now back to your question. DSR's are coming to more dealers now, but that's because GMis using them for all marketing divisions now. So, it is an indication of concern with your warranty expense. Based on the transactions I have seen it means you are quite a way off average, so I would take it fairly seriously.

Once you get one, it's very easy to get another, and then a third. It's just the way the numbers trend.

Finally, DSRs are not based on yout CPVS, they are based on your dealer's Differential Points. Ask your ASM for a Dealer Select Report showing your Differential Points. My experience (so far with this new 3 month old GM-wide system) is that it takes 30,000 plus points to tigger a DSR. Often times I see point totals in the 50,000 before a dealer gets a DSR.

-- Rob

[sallen1]

Here's an update on the DSR issue. Lot's has happened since my first post.

We were notified yesterday that the warranty machine back in Detroit will be recalibrated to 'understand' the differences between the cars lines. Specifically, the caller said that Cadillac has more expense per VIN than other lines and the system needs to be adjusted. Also, since the audit teams have been significantly reduced, everyone should expect a DSR in the future and its a check by GM that the DSMs and the dealers are authorizing the proper adjustments.

We got three DSRs since the beginning of the year, but the last one was only a couple of pages. Obviously, I've been educated that the 3rd DSR told us to clear some space for the auditors, but now the I've learned that the system has changed. The caller from Detroit said that our expense had dropped so significantly and that the 3rd DSR would be the last for a while and that under the new calibration, we would'nt have received it.

Make sure that if you get a DSR that you immediately contact your DSM and get that person involved. In fact, if you are doing a proper job, have the DSM do a quick random survey of the ROs listed. If everything looks good, the DSM can call off the sharks. DSRs are a pain but they are MUCH easier than entertaining the auditors...

scott

[robc]

I find the recalibration efforts semi-funny since I said these things from day one. I just sit in a office looking at DA reports and I could have told GM that some vehicles are more expense than others to repair. You would think they (GM) know these numbers as well as I do. Last December (Pre-VSSM changes) here is how division's national CPVS ranked and approximate CPVS.

1. GMC $300
2. Cadillac $295
3. Chevrolet $270
4. Pontiac $240
5. Oldsmobile $230
6. Buick $215

When the combined report took product mix into consideration I believe they began comparing high lines to high lines. In other words, Buick to Cadillac ... which clearly is not the case based on CPVS. I give them that a Pont/GMC store is the same thing as a Chevy store, but Cadillac has no comparative basis.

GM should do what Chrysler does and calculate a vehicle expense adjustment. After standardizing the parts and labor, the expense is recalculated (up or down) depending on the type of vehicle repaired. Cadillacs are 20% more expense on a CPVS basis than all other passenger cars, so their claims should be reduced by that amount.

Just my thoughts ...


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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[lovemotors]

Sallen1,
Watch out for that third DSR.The way I understand it is that the first one is to let you know you have a problem and give you a chance to address it. The second DSR means that you have not cleaned up your problem and you are on your way to big trouble. If you recieve a third DSR then that is your last chance to correct your problem(s) before a N.A.O. audit team comes in to clean your clock. May be things have changed since the reorganization to the VSSM system. Be carefull and good luck.................

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A single line Chevrolet Dealership on the Monterey Bay.

[sallen1]

an update on my DSR problem...

You may not be aware of a 'service' GM provides for you. It's called a 'warranty review' where the regional auditor comes into the store for a 'friendly' review of you warranty claims. Supposed to be 'no charge backs' but if they find something out-of-whack, they will whack you. However, the review was enlightening and so far our expense is much lower than the peer group average and we are promised that if the trend continues for a couple months, there will be no 4th DSR.

I like GM's promises, they are worth the paper they are not written on...

scott

[SWright]

My experience with DSR's and the regional audits,is that monthly review of your warranty expense report is crucial in avoiding a DSR. Chevrolet has been doing these for while. Anytime you see two months in a row of explanation marks or baseball bats on the first row,you better get on the phone to your DSM and ask for a report of that catagorie. Request a friendly visit if you get a DSR but take it serious. Look for trends and concentate on the pyrimid section of the DSR.We got one last year and we nipped in the bud. Called in the regional auditor and she was great. Its probably the same one you have Sallen. She is very helpfull and informative, just be up front with them and they can help!!