Florida Service Departments

[scotstrong]

Has anyone contacted your state or local dealer association for their input? Has anyone forwarded the manufacturer's letter to the governing body that established the new regulation? If there is any enforcement teeth in the new law it would seem that the manufacturer is just asking to get "bitten". The letter sure sounds "coercive" in its overall tone. If the law forbids any "tit-for-tat" retaliative actions or fees, the letter itself may be viewed by the state as an act of non-compliance.

[Jim Lloyd]

I forwarded my copy up to our management company and they will take it from here. When I called the mgmt. co. this a.m. they were aware of the conditions GM was imposing via hearsay, but were questioning whether or not GM would actually put it in writing. I guess my faxed copy ended all of their speculation...LOL!

[sermgreby]

We overnighted our request and Ro surveys a few minutes ago. After 25 years in dealerships I guess I will find out what an audit is like.

[Jim Lloyd]

I can live with an audit. We watch our warranty claims closely and have good processes in place.

What irks me is the loss of self-authorization. That's a penalty or retaliation move in my book, plain and simple. We have 421% Training Standards, CSI consistently above the zone, region and national averages and warranty expense right down the middle of the road. But don't dare request what the state has allowed, or you risk a whole slew of Draconian rules.

GM's approach to this may very well blow up in their face.

[robc]

The dealerships I am working with are moving forward as well. They don't feel they have anything to fear from an audit and even if they take $20K, the difference on parts will pay that back in a few months. Nobody likes to be pushed around or threatened.

As far as the auth controls - no biggie, that just puts more work on their reps.

The thing is the law will likely be refined in a few months to be more specific on the issue. GM could get a ton of brownie points by looking to work within the confines of the hand they were dealt.

Here's the one question we are yet to find out - we aren't asking for the labor rate - just the parts because the stores are on Option C and really don't want the added hassle of the labor rate calculation. GM is threatening to reset the labor rate - but will they if it isn't asked for?

== Rob ==

[sermgreby]

The letter GM sent out does say that theyu will address labor also. They probably know most dealers effective rate is less than their warranty rate. Also a warranty specialist for Gm has told me the same thing.

That being said in the opinion of some lawyers, they feel that the fact the law says for "like work" and "to rectify the licensee's product or warranty defects" that it could be interpreted to mean the exclusion of maintenance. If you exclude maintenance the labor issue should not be a problem for anyone.

When we did our survey we used that interpretation. It will probably end up being decided by an administrative judge.

[This message has been edited by sermgreby (edited 08-14-2007).]

[STEVEH]

We were told that Volvo and Ford will pay list price as long as you can show them a invoice that you charged that same part to a customer for more than the warranty price.
If this is the case then this will be a
paperwork nightmare. Anyone heard any different?

[robc]

Yes that is what Ford has said - what I call the Maine defense - it is the exact same thing they tried in Maine until the court told them - get real. Clearly the intent of the law is to reimburse the dealer at retail. Just because the dealer never sold a part (how many steering wheels have you sold on a 2008 model at retail) doesn't mean the dealer isn't entitled to legal reimburement.

The factory will put out crap, knowing if it goes to court they will lose, hoping that dealers will back down and go away. I don't think that is going to happen in Florida but who knows.

I, of course, disagree in every possible way with Ford's reading of the law. Here is the nice thing about Florida. You submit and then the responsibility is on Ford to go before the motor vehicle board and has to "demonstrate and establish in a proceeding before the department that the dealer's retail charges for labor and parts are improper in light of all economic circumstances."

We haven't gotten to that point yet. I think a verifiable survey of what you charge on similar repairs should satisify the department ... we'll find out.

[GMFXDOPSMGR]

We too are in a wait and see mode. My owner is worried about the audit, loss of authorization, the added pressure, etc. Our warranty EPUR is $45.00 below national, training is above region, my manager checks the wro, then I check it. We want the $'s we are entitled to, but.....at what expense going in. You know if an audit group comes in they will look for the .'s and crossed t's. I will wait for word on how others faired.

------------------
Tom Edwards

[sermgreby]

I just got a phone call from our sales rep this morning. He e-mailed me 50 VIN's to pull the files on, all warranty, and informed me that the southeast region warranty manager, warranty specialist for this area and a third party to be named later will be here Monday at 8:00 a.m.

It is really disapointing that they are trying to intimidate the dealers this way. Our warranty expence is below peer, CSI is above average, our fixed right score is #2 out of 53 dealers in our zone and training is 216%. This is obcviously a witchhunt because we asked to be compensated under the law.