Rich Reinicke’s article in Fixed Ops Magazine (pp. 22-25) offers several important insights into service department business processes as they relate to warranty repairs. First, Reinicke notes that about 30% of all service department revenue is from warranty repairs. Equally important, he cites a Ford Motor Company source as saying that 30% of all dealers are in Ford’s “Warranty Counseling Process.”
Second, Reinicke points out that warranty audits can be costly for dealers. A $60,000 fine resulting from inadequate paperwork and subpar processes is apparently not uncommon after audits.
Finally, the article notes that every document touched by technicians and service advisors has legal ramifications during warranty audits. Whether notes are scribbled out, whether RO’s are time stamped, whether consumer approvals are properly documented…these are all issues that factory heavily into the outcome of a warranty audit.
Given the financial status of OEMs, it’s not surprising that warranty audits and other cost-cutting measures are receiving more attention. In this light, we often emphasize ClearMechanic’s ability to create first-class documentation of additional repair approvals (and declines).