Florida Service Departments

[GreggB]

Our Chevy store sent a request for parts increase and are now getting a dealer self audit this week with the rep checking ro files. We have never had an audit or self audit in 15 years and have been high in CSI and low in expense per vehicle. Should be interesting.

[maddog]

FYI, You all have probably seen this!!

http://www.dealersedge.com/dailybriefin ... 821b.htm&2

[sermgreby]

We just finished with our GM audit.

Based on the results of the audit we feel that it is in our best interest to go forward with the request for retail reimbursement.

That being said they brought up some good points that we were lax in, mostly documentation and a
misunderstanding of a policy by our warranty administrator. All of which can be easily fixed.

[sermgreby]

After reviewing their audit it seems we have a good case to appeal a big part of it.

[jimmuntz]

Smergreby-

Based on the tone of the letter from GM, I think you should consider this the first shot in a long war. That might be overly alarmist at this point, but I have never witnessed a letter as heavy-handed and full of real or latent threats.

Just an opinion- but I believe they have every intent of making your life miserable as long as you seek retail reimbursement.

In other states, Ford took a similar stance, allthough a little more disguised and ultimately lost. But you could be in for a protracted battle.

And don't be too surprised if they show little interest in your appeal.

[This message has been edited by jimmuntz (edited 08-23-2007).]

[sermgreby]

Jim

We realize that this will be a ongoing battle. They literally debited items that had previously been approved by the avm and suggested by the parts rep as they could not provide parts through GM. Even if they do not listen to the appeal we feel in the long run we will be better off. They also put restrictions on our auth ability as they said they would. Just creates more work for their field staff.

From conversations with other dealers it seems like more and more are applying for proper reimbursement.

I still feel that it is unfortunate that they are making their dealers feel threatend by the tone they have taken. That being said, the audit they performed was not that bad.

As I said earlier there are some things we disagree with and feel we can make a strong case for even though they probably will not see it the same way. It was a learning experiance and not too painful financially.

I do understand that there is a lot of money on the table and they are trying to keep costs down but this law applies to all manufacturers not just GM so they are not at any disadvantage in comparison to Toyota or anyone else.

[This message has been edited by sermgreby (edited 08-23-2007).]

[This message has been edited by sermgreby (edited 08-23-2007).]

[wopigsooie]

Jim, I am a Fixed Ops Director in Arkansas, and the question continues to come up in what should be calculated in the Effective labor rate. It is my opinion that every repair I do is part of my rate. Your thoughts.

[David Henson]

wopigsooie, I'm not Jim, but do agree with you that you must consider everything you do to calculate the "true" ELR.

After reading the letter from GM, I am curious what they can actually do to Option C dealers regarding labor rate verification.

Option C removed dealers from their labor rate being tied to ELR and is more or less now tied to the prevailing and fair rate in the area.

I guess they could go after Option A dealers if they wanted to on this basis. Under the Option A provisions, "no service repairs can be excluded." They do allow you to throw out body shop repairs, state inspections and emission inspections.

BTW, Arkansas was in the process of passing a similar law in June that referenced a reasonable compensation warranty labor rate being "exclusive of routine maintenance."

It also was proposed that "... there shall be no requirement for part-by-part analysis in determining the retail rate for parts."

What ever came of that?

[STEVEH]

Infiniti and Nissan have complied with the law. We don't even have to apply for the new pricing. They also are going to credit us for the warranties from July 1st to date when the law took affect. I wonder what or if the other audit shoe will fall.

[wopigsooie]

SteveH, How did they arrive at the prices. Did they do a survey, or you just tell them what your C/P rates are. Did that include parts and labor, or just parts?
What are all the other Mfrs doing? We are trying to get that in our state.