Repair vs. Replace and Related damage claims

[Drew]

My warranty administrator brought up an interesting question and I thought I'd ask the group for some opinion regarding it. When we are performing the ever-present head-gasket recall on Ford vehicles, we routinely end up doing an engine under related damage coverage. Here is where the question comes in: are we required to prepare a repair vs. replacement sheet in regards to the engine we are replacing? I contend that because the block is the only fix as determined by our techs, and no repair is a viable fix, no sheet is necessary. I may be assuming something that voids the question altogether, so I'd appreciate some comment here. Thanks.

[robc]

It's my understanding that when operating under the direct instructions of a recall or ONP, dealers are not required to justify the replacement of components. Afterall, in a real sense that's not an option. The very specific ONP instructions normally state if "x-" and "y-" exist, then do repair "z." So I think you'll be safe without them.



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** Rob, Editor WD&S **
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robc@dealersedge.com