SECTION 1 – DEALERSHIP ADMINISTRATION
1.4 SUBLET OF WARRANTY REPAIRS
1.4.3 Conditions of Sublet Repairs
The Dealership must ensure that all Warranty repairs are conducted in the most cost-effective manner, including Sublet repairs. Other sublet repair conditions include:
- Warranty repairs sublet to an outside repair facility that is owned (in part or entirely) by the subletting dealer (e.g., offsite body shop) may NOT be claimed as a sublet repair
- Ford dealers may sublet repairs to an outside repair facility that is owned (in part or entirely) by a different Ford dealership but not owned by the same Group or Holding Company
- The subletting Dealership is responsible for ensuring that competent repairers carry out the work, and where repeat concerns in the future may arise with the sublet repairs, the subletting dealership will bear all responsibility and liability for the customer.
- Customer concerns must be verified by the dealership Service Management prior to any repair work being initiated by an outside repair facility
- The Dealership should ensure that sublet repairers charge a competitive labour rate for any repairs conducted. Where no comparable information is available, the Dealership is responsible for ensuring that the work is carried out at a competitive cost. Reimbursement is to be based on actual cost. The amount claimed by the Dealership must include all discounts given by the repairer to the Dealership
- Where a comparable Ford Service Labour Time Standards (SLTS) Manual operation exists for the sublet repair, this must be used (for non-specialist sublet repairs)
- The actual OSL (or actual repair time) may be claimed (for specialist sublet repairs) but CANNOT exceed Ford’s allowable SLTS where one exists
- Actual time must be listed separately, and payment is based on actual cost where the cost is reasonable
- The sublet repairer’s labour time rate must not exceed the subletting dealer’s Warranty Labour Rate (for non-specialist sublet repairs)
- Sublet repairs must use new Ford parts or remanufactured/reconditioned parts authorized by Ford. If the part is out of stock nationally, or when the part used by the sublet facility is not offered by the Company, payment for the outside part is based on actual cost (not to exceed the Dealer Price of the comparable Ford or Ford authorized part) plus the applicable parts allowance, if the actual cost is reasonable.