Ford reduces warranty labor time

[sallen1]

Saw an article in Detroit News where Ford has reduced the labor hours for warranty repairs. One example was the change to 5.0 hrs from 7.0 hrs for transmission replacement (a 28% reduction). There was some discussion how upset technicians are, and I'd be VERY UPSET as a Ford dealer (which I am not). Where's the outrage here?

Consistent with the 'Blue Oval' certification program, I see a horrible trend occuring at Ford (and GM tends to follow Ford's lead...) Dealers are going to be forced to place the highest priority on warranty repair because of the certification/customer satisfaction portion of Blue Oval. However, the financial incentive of providing warranty repairs is diminishing, almost to the point where it's unprofitable.

So who benefits? The tech?, no. The dealer? no. How about Ford? No, because customers will find products that are reliable AND servicable.

scott

BTW, do these policies affect Lincoln, Jag, etc.?

[robc]

This story mirrored an article that appeared in USA Today a few weeks back. Certainly, techs are upset about the situation and I believe that they have a legitimate beef with Ford on this issue. Warranty was already unprofitable for the dealership and now it is even worse on techs who are seeing their pay drop with warranty times.

It seems incredible to me that a company that makes billions of dollars feels the need to balance their checkbook further on the backs of hard working techs, who are just trying to provide for their families.

The policy is true for Ford, Lincoln and Mercury, but I haven't heard if Jag, Mazda or Volvo has picked up on same theme. I would tend to believe that they haven't because my experience is that imports tend to be more generous in reimbursing techs for warranty work.

The major reductions in time took place last November and the situation is still a major cause for concern inside Ford. Master techs are leaving for jobs in other fields. I heard of one area where the local phone company was actively recruiting dealership technicians. I think this will be a move that haunts Ford and the industry for a long time. If techs can't make a living, or can make a much better living in other fields that they are qualified for, we are going to see a greater shortage of techs.




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

[mark vandersteeg]

you get what you pay for!!!

GM is trying to attract techs to the workplace by programs like GMYES and ASEP. the last time i checked with any techs (?!?!) it was the good pay and benefits that kept them from going into another industry. otherwise, why would a person who is expected to have as much knowledge about things like "serial data communications" and "strategy based diagnostic procedures" want to work a job where he has to get dirt under his fingernails and continue to receive covert pay cuts. GM is talking a different story from both sides of their mouth. no wonder the market share keeps dropping.

[Rob K]

So where are the new crop of techs going to come from? Is the product going to get so good and so simple that Pep Boys refugee parts changers are the only skill level needed? I don't think so. For all of the Blue Oval platitudes, it seems that Ford believes that being a franchised dealers is lucrative enough that they can force the dealers to absorb the additional expense of maintaining a high cost employee to chase low margin business. Sadly, many techs are voting with their feet, and discouraging interested youngsters from pursuing an automotive career.

I would however be interested in knowing what others are doing to attract talent in the face of adversity.

Rob