Warranty percentage - what is yours???

[Ichabod Farquar]

I attended a GM meeting last week. One of the topics was warranty audits and what can cause your dealership to "qualify" for one. One of the qualifiers was warranty sales to total sales percentage. GM wants to see less than 15% warranty labor as a whole.

I realize this is the parts section but it sees a lot more traffic than service and I believe a lot of you guys/gals look at both sides.

We are at 31% warranty labor YTD

Parts sales we are at 14% YTD. Of course wholesale & B/Shop helps drive that down.

Questions:

What is your labor percentage?

Have you heard this 15% figure before? With recalls it seems 15% is low. But I would really like to hear what your numbers are.

Thank you.

[partsguy99]

Everything that I'm hearing is that the General will auditing EVERY dealer's Fixed Ops Depts. Perhaps the warranty percentage
thingy you mention will trigger it sooner rather than later, but all GM fixed depts. will eventually be audited.

[Lutom]

They're definitely going around. We just had our audit last week. That was a fun 4 days

[KLINK]

I heard they brought the audit department back in house and hired and are training 12 new auditors (in the southeast) and plan on an across the board audit.