Fixed Ops Magazine - 2023 Vol20 04 - 22

a dealer successfully submits for a parts markup rate
increase, and the new and approved increased rate is
established and implemented by the dealership.
Subsequently, a dealer decides to submit or resubmit
for a labor rate increase pursuant to the state statute.
As referenced above, a dealer is generally required to
submit one hundred (100) sequential qualified repair
orders in support of the requested rate increase. This
process must be precisely followed by dealers, or they
take the risk of having the submission rejected by the
manufacturer.
During the course of reviewing the 100 qualified repair
orders for the labor rate submission, the manufacturers
are conducting what is seemingly an unlawful audit
and recalculation of the existing parts markup rate. The
OEMs are analyzing the parts data from the qualified
repair orders to validate the previously approved parts
22
increases. When the manufacturer completes the submission
analysis and approves a labor rate increase, it
is thereby taking it upon itself to decrease the parts
markup rate even though there was not a pending
parts submission at that time.
This unfortunate trend is concerning for many reasons,
including, but not limited to, the OEM acting in derogation
of the spirit of the pertinent Retail Warranty Reimbursement
statutes, the double standard by which the
manufacturer is selectively using dealership repair
order data to support its misapplication of relevant
state laws, the apparent lack of authority by which the
OEM is conducting itself and its overall unfair business
practices relating to Retail Warranty Reimbursement.
As referenced above, the state Retail Warranty Reimbursement
states were enacted by state legislatures
to protect dealers and set forth the regulations and

Fixed Ops Magazine - 2023 Vol20 04

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2023 Vol20 04

Fixed Ops Magazine - 2023 Vol20 04 - 1
Fixed Ops Magazine - 2023 Vol20 04 - 2
Fixed Ops Magazine - 2023 Vol20 04 - 3
Fixed Ops Magazine - 2023 Vol20 04 - 4
Fixed Ops Magazine - 2023 Vol20 04 - 5
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Fixed Ops Magazine - 2023 Vol20 04 - 67
Fixed Ops Magazine - 2023 Vol20 04 - 68
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