Turning a blind eye

[robc]

Here's the situation. Customer buys an Goodwrench engine for his homemade street rod and installs it. Almost immediately there are problems with it (leaks, knock, etc.)

According to Goodwrench non-stock applications void the warranty, but this was clearly a bad engine to begin with. Whether it was in a stock application or not the engine would have knocked and leaked. Since the customer bought the engine on a counter ticket, no one knows what he put it into.

So do you:

(a) tell him sorry, and maybe he'd like to buy another engine from you.

(b) call Goodwrench CAC, DBC or your ASM and ask for assistance given the circumstances, knowing that if they turn him down you have no hope of getting the claim paid.

(c) tell him you don't even want to know what he's doing with the engine and just turn a blind eye to the problem to get paid for something that really is GM's responsibility.

Even though I am using Goodwrench as an example I am sure the same situation could hold true for Mopar or Motorcraft.

Let's throw in some other circumstances. Say the customer' business also buys three Cadillacs a year from you. Or, he is your ASM; or another factory employee. Would that make the difference?

I understand if you just want to e-mail me your reply I'll compile any e-mails I get and repost them anonymously under my name.

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

[This message has been edited by robc (edited 05-27-99).]

[sallen1]

Maybe you should think of it this way...

Option (c) seems to be the right answer.

Let's say that a customer buys an A/C compressor or a window motor on a counter ticket and installs it himself. After a couple of weeks, the part fails and the customer returns to the parts counter under the 12/12. Do you file a parts claim for that?

If you do, then why would that be any different than the street rod application. Let's just say that the customer took the 'part' home and found it to be defective and returned it for replacement.

This may be a dumb question: Is there any documentation for what the customer intends to do with the part? I could see where people might find other 'non-automotive' use for stuff that would void the warranty, but how are we supposed to know?

Finally, I don't think there should be a different policy for customers depending on who/what they are. As long a someone bought the item from us, we back it up.

scott

[slilly]

These are some good questions, but it sounds like a case by case situation. Like how modified? Unless he did something to this engine for what it's not intended for usually this would look like abuse. But the point is like you said the engine would have failed in any circumstance. The engines are advertised as "replacements" and as "repower" units for specific models of vehicles, wouldn't that be just as much a concern, if nothing says THEY HAVE TO to go in what?
The customer doesn't care, they bought an engine FROM YOU, therefore YOU can worry about all that stuff. It's YOU that owes them an engine.
Think about trying to prove it in court.
Sam

[David Henson]

I must agree with the last two posts. How about this one, I had an auditor attempt to chargeback a part failure on an OTC claim because the technician had installed it in his own garage.

His comments were "since the part was not installed under ideal conditions and without access to needed special tools (i.e. flusher, pressure test, etc.) the installation was most likely inadequate."!!

[Mike Davis]

I think that the only thing that you could do would be to replace the motor and call the factory with the facts. If you start lying and covering up it can only get you in trouble. If the manufacturer caught you lying to get it paid it could only cause you grief. The factory already looks at claims close, why give them additional reasons to scrutinize your claims. You have to believe that the factory rep is going to sign off on it and authorize the claim. If not write it off now and not with an entire stack of claims because they question your integrity and honesty. That isn't the type of relationship that I want with my reps!



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Mike

[robc]

I have three or four e-mail replies that I'll add to the board to continue the discussion, but in the meantime I have a question.

According to GM (and my experience) a VIN number is NOT required on claim types "B" and "N". The only time you have to put a VIN number is when you are requesting either net or labor. So, if it is an over-the-counter sale, and no labor/net is involved a VIN shouldn't be required....? Right????

If anyone has had a lot of experience with this please let me know.



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

[David S]

With 15 years of experience in Parts and Service this is how I feel. I want to be fair to everyone. The customer, the factory, and my dealer.

The scenario is that a customer returns shortly after he installs the engine. First, how shortly? If he has had any chance to drive the car with the new engine I would put it this way to him.

I will call my manufacturer's rep. I will advise him of the issue. The warranty states that the part is warranted against manufacturer's defects and workmanship. I will get authorization from the factory for teardown and inspection. If there is no evidence of abuse or misuse the cusotmers claim will be honored. If the techs find any evidence of abuse or misuse of the engine the customers claim will not be honored and the customer will also be liable for the teardown charges.

Either the customer will agree and you can take a good faith deposit against the teardown (to be refunded if warranted) or the customer knowing that he did something wrong (if this is the case), will argue and you can direct him to customer service at which point the rep can handle the situation as he sees fit.

I once had a similar situation. The customer didn't agree with the terms. He contacted the factory. The rep ended up authorizing payment of inspection. There was evidence of abuse. The customer went away and we collected 2 hours of labor time.

I hate when a customer goes away unhappy but I also feel that there are times when a customer is not "right".

On the other hand if we weren't talking about so much money as in this case you might be better off to "eat" the cost and keep a customer.

David S