Chapter 6: Manufacturer-Dealership Relationship | All About Lemon Law
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Chapter 6: Manufacturer-Dealership Relationship

An unpleasant consequence of part-swapping occurs when the problem shows up a second time. Many manufacturers will refuse to reimburse a dealership for repeated warranty repairs for the same complaint, citing inefficiency on the first attempt. For example, suppose a vehicle’s engine runs rough. The technician replaces the spark plugs, but the car comes back with the same complaint. If the dealership wrote it up on the repair order as the same complaint, then the manufacturer would assume correctly that the dealer hadn’t done a proper repair the first time. The manufacturer would reject the warranty claim, and the dealership would not be paid for the repair.

To avoid this, it is in the best interest of both the dealership and the technician to find something different to blame so that they can make it look like a different repair and get the manufacturer to pay for it. They certainly aren’t going to admit that they made a mistake the first time. Instead, this time the repair order may say that the engine hesitates and surges.

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Says one former technician: "Part of the reason I changed careers was because I was so frustrated by working in such a crooked environment. Bad technicians that lacked morals made the most money and honest ones lagged behind significantly."

Work Faster, Not Better

A fast technician flags 80 hours of work. His actual time to accomplish the work might be only 38 hours. Dealerships love these high-speed technicians, because they make the company a ton of money. These technicians are the dealer’s darlings. They will get bonuses, pats on the back, and "Best Technician of the Month" awards.

Nothing wrong with working fast, but how often have you seen good work proceed from fast work?

Some managers even base their technicians’ hourly rate on the number of hours flagged. Technicians flagging over 80 hours per week get a two-dollar-per-hour raise over a 40-hour technician. When honest technicians ask their managers for raises, they are told, "You want a raise? Flag more hours!"

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