Fixed Ops Magazine - 2023 Vol20 04 - 23

guidelines by which dealers can
receive warranty reimbursement at
retail rates for parts and labor. The
statutes set forth the procedures
by which dealers may apply for rate
increases and do not permit OEMs
to use the dealer's own submissions
to counter and walk back previously
approved parts markup rate
increases.
It is anticipated
that additional
manufacturers will
commence the same
practice to circumvent
and misconstrue
state statutes in an
In this situation, by cherry picking
and selectively using specific parts
data, manufacturers are creating a
fallacy as purported justification for
lowering a dealer's parts markup
rate that was previously approved by the same OEM.
More specifically, the dealer is submitting 100 sequential
qualified repair orders, as required by state statute,
yet the manufacturer is using a much smaller
and non-sequential sample size of the same data to
decrease the parts markup rates.
attempt to decrease
dealer profits.
audit or charge back warranty payments.
See e.g., NY CLS Veh & Tr §
465, Mass. Ann. Laws Ch. 93B § 9, Ky
Rev. Stat. § 190.046, Nev. Rev. Stat.
Ann. § 482.36385, A.R.S. § 28-4451.
However, it is vital to point out that
such " audit " or " chargeback " provisions
relate to individual warranty
claim payments on the basis of fraud
and not a warranty reimbursement
rate increase as discussed herein.
See, Aspen Ford v. Ford Motor Co.,
2006 US Dist. LEXIS 22419, citing NY
CLS Veh & Tr § 465. This is a further
indication of how the manufacturer
is attempting to misapply state statutes
to aid its misconduct, which has no valid basis or
authority and is contrary to all applicable laws.
The same state statutes that outline the Retail Warranty
Reimbursement process and procedures also,
in some respects, provide for a franchisor's right to
It is anticipated that additional manufacturers will
commence the same practice to circumvent and misconstrue
state statutes in an attempt to decrease
dealer profits. It is an unfortunate truth, but dealers
and their counsel must remain cognizant of OEM conduct
in response to Retail Warranty Reimbursement
submissions.
JULY AUGUST 2023 || FIXED OPS MAGAZINE
23

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
Fixed Ops Magazine - 2023 Vol20 04 - 6
Fixed Ops Magazine - 2023 Vol20 04 - 7
Fixed Ops Magazine - 2023 Vol20 04 - 8
Fixed Ops Magazine - 2023 Vol20 04 - 9
Fixed Ops Magazine - 2023 Vol20 04 - 10
Fixed Ops Magazine - 2023 Vol20 04 - 11
Fixed Ops Magazine - 2023 Vol20 04 - 12
Fixed Ops Magazine - 2023 Vol20 04 - 13
Fixed Ops Magazine - 2023 Vol20 04 - 14
Fixed Ops Magazine - 2023 Vol20 04 - 15
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Fixed Ops Magazine - 2023 Vol20 04 - 17
Fixed Ops Magazine - 2023 Vol20 04 - 18
Fixed Ops Magazine - 2023 Vol20 04 - 19
Fixed Ops Magazine - 2023 Vol20 04 - 20
Fixed Ops Magazine - 2023 Vol20 04 - 21
Fixed Ops Magazine - 2023 Vol20 04 - 22
Fixed Ops Magazine - 2023 Vol20 04 - 23
Fixed Ops Magazine - 2023 Vol20 04 - 24
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Fixed Ops Magazine - 2023 Vol20 04 - 27
Fixed Ops Magazine - 2023 Vol20 04 - 28
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Fixed Ops Magazine - 2023 Vol20 04 - 49
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Fixed Ops Magazine - 2023 Vol20 04 - 67
Fixed Ops Magazine - 2023 Vol20 04 - 68
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