If you have been entered into Ford’s Warranty Counseling Process, we can help. Make no mistake, this is a serious matter. As you may know, this multi-step process begins as follows:
Step 1: Dealer Self-Review – Dealership is allowed to self-review warranty issues and compliance from a computer generated list of claims. Although Ford suggests “two thirds of all dealers who enter this process exit at this stage,” our experience has shown this only to be true if the dealership can isolate the cause(s) and implement corrective action immediately.
Step 2: Warranty Root Cause Review – Actually a low-level audit, this step usually lasts less than a week. Depending on your situation, this audit may be conducted by either Regional Auditors, or Select Dealer Region Auditors. Because chargebacks are limited to the Standard Charge-back List, debits are typically less than $10,000.
Step 3: By this point the dealership has been under probation for at least a year without showing significant improvement on the GWMS report. This is a full-blown audit and chargebacks are not limited in scope. Any deviation from guidelines in the Warranty & Policy Manual are subject to chargeback. This audit may consist of either a face-value audit or an extrapolation audit. In an extrapolation audit, each debit is multiplied by eight. For example, a missing hard copy of a $1,000.00 repair will cost the dealership $8,000.00. These audits can easily top $40,000 – $100,000 and usually last at least 2 weeks and, on occasion—more than 6 weeks.
Step 4: Once you’ve made your way through Step 3, FMC will schedule a follow-up audit—with all claim deviations subject to debit—to the store within 6 to 12 months. This is to insure the dealership is following guidelines.
Don’t fall victim to the Warranty Counseling Process. Many managers fail to recognize the factors that can drive out-of-line conditions on the GWMS report. We have the experience and knowledge to isolate these conditions and implement changes while insuring you are being paid for every legitimate warranty dollar.