DealersEdge Professional Forums

what is recourse if factory rep turns down labor rate application? we recieved increase in april of this year we are applying because of union contract increase.

Generally Manufacturer's only allow a warranty rate review once every 12 months.
With my manufacturer the expection would be that something has significantly change in your market. Since your cost of sale has increase, can you prove that this has also happened at other local dealers, resulting in an overall market average change with selling labor prices?

I suggest you do a market survey of other dealer's effective repair labor rates and present these facts to your manufacturer.

Rick,

Take it from someone who knows.....In most cases the factory has good reason to turn you down. Either you're asking for too much or your not a top peerforming dealer. The factory only wants to pay a premium to dealers that are top of the line dealers. I know that GM has an arbitration process where you can appeal that denial. Call your District rep to find out more info. or better yest, check your Policy and Procedure manual. there shoul be info in there.