DealersEdge Professional Forums

Chrysler has just started with the Takada air bag mess. The dealer cost on the part is 7.00.
Not much profit for parts handling the part check in, dispatching to service and then shipping the hazardous part back.
What is the cost of part for the rest of the manufacturers? Is everyone getting the shaft on these? I do not expect to make $184.00 profit like I would on the replacement if it was a regular warranty repair, but fair is fair and this is not. A $20 handling fee wouldn't be right but I could live with. $2.80 is BS

The one for the Vibe costs $16.50 and it is a crock.

The Matrix/Vibe is $16.50 cost for that air bag. When I was with Mopar they always seemed to low ball recall parts so 7 bucks sounds about right.

Beat me to it TimK.......

It's still better than the $.08 per vehicle we're making on the stupid key inserts. Thats the profit on the 4 rings and 4 inserts per vehicle. It cost more than 8 cents to pay a counterperson to bill them, not including pulling them, ect....

Richard wrote:It's still better than the $.08 per vehicle we're making on the stupid key inserts. Thats the profit on the 4 rings and 4 inserts per vehicle. It cost more than 8 cents to pay a counterperson to bill them, not including pulling them, ect....

I checked their calculation, that $.21 material expense (rejects if it is marked up) we get doesn't cover the $.24 cost! Surprise!

BigGMan. I fell your pain. For each HONDA inflator we make either $8 or $11. It's a HUGE loss for the parts department. The counterman must make an order typing in the VIN#. The Ordering person must check availability 1st. Why, because if it is on B.O. it must be ordered 1 way and if not, it must be ordered another way (both orders require the VIN# entry). Once backordered, the order person then must upgrade to order in another screen by VIN# (again). Once it comes in, the shipper/receiver stores the inflator. Once the customer comes in for the install, the warranty clerk submits the claim (with the VIN#!). Lastly, the shipper/receiver then must repack the inflator by taping 7 items to the box & shipping out Fed-Ex ground.

Honda here.D/N for Driverside inflators are ~$28 and ~$20 for the Passenger. We make around $25 on a Left and $17 on the Right side, quite a bit of paperwork but still easy money. I'm running out of storage space though.

West coast DCJR parts manager here. Are you actually getting airbag parts, we're still locked out? Today FCA added another 250k Jeep Grand Cherokees to the list, and the heat is on again as soon as it hit the airwaves. We assume we'll be last on the rollout because of the lack of airborne moisture out here.

No chance of ever breaking even with FCA and their Recalls, process OR pricing wise, and after 20 years with Chrysler I've come to the realization that no matter how much Chrysler and the car market changes, Mopar never will. All my whineing, bitching, screaming and pleading have gotten me nothing more than high blood pressure.

The ONLY way to come close with recall break even, is a good solid process in service in parts, and minimizing the handling/repair times. Watch your scheduling and flow, and I assume these will all be ARO controlled, so be sure your warranty administrator is on top of processing claims immediatly to keep your replentishment at maximum.

I can certainly understand the logistics of this recall is a pain in the ass but the opportunity to be introduced to people who have never been to the dealership before is priceless. We are a Honda dealer and we are killing it right now ...love, love love these recalls. I would agree that you need to have a great process in place and wow the crap out of these people and try to make them yours for life. We make sure every customer gets a welcome kit with coupons and we make sure every employee knows we want these people treated like VIP. Best no cost advertising I have ever done.

btk, that is a great reply! I sure wish our service department saw things that way. It is killing me that we are just trying to run these people through and get finished. Sounds like a great dealership to work for!