SECTION 5 – WARRANTY PERFORMANCE MEASUREMENT

5.3 THE WARRANTY CONSULTING AND AUDIT PROCESS STEPS

5.3.2 Step 2: Warranty Review

1. Nomination selection: Once the three (3) months PIP period has passed and the Dealership has not exited WCP, the dealership is nominated for Step 2.
2. Ford Consultant Engagement: A formal notification is sent to the dealer, and a Ford consultant is assigned to work directly with the dealer. The consultant conducts the review of the dealer's warranty process, identifies further areas for improvement, and provides more in-depth support and guidance. Subsequent actions are determined by the findings of the Step 2 Warranty Review and any associated financial implications, are applied based on the chargeback matrix (as applicable).
   • At the Ford Consultant's discretion, the review will proceed as a desktop review.
   • Misrepresented claims (as listed in the Unusual or False Claiming Practices) will trigger an Immediate Warranty Audit.
3. 3-Month PIP: A 3-month PIP is provided after the completion of the Ford consultant's review. PIP will start from the consecutive month after the Step 2 Warranty Review completion.
4. Step 2 Exit: Once the PIP starts, and the dealer's DAS Score is either “Green” or “Blue” (i.e., greater than or equal to 60 DAS) for two out of three months, the dealer shall exit WCP.

The focus of this action is to determine the root cause(s) of the adverse profile and provide assistance with developing a Dealership action plan. Where instances of non-compliance with the Warranty and Policy Manual are identified within the claim sample, these will be brought to the attention of the Dealership’s Management. Chargeback will occur where claims are within the scope of the WCP Chargeback Matrix. Dealership Management will also be alerted to any identified process weakness that is potentially impacting customer satisfaction and business growth.

Note: When the Step 2 Warranty Review identifies unusual or false claiming practices, the Dealer will be nominated for a mandatory Step 3 - Warranty Audit.

Follow-ups to Step 2 Warranty Reviews

• The warranty Consultant will schedule follow-ups (where the dealer’s DAS is “Red” (i.e., below 60 DAS) at around two months, then four months from the Step 2 Warranty Review completion.
1. Usually a phone/video call
2. Typically, less than two hours
3. Discuss questions regarding warranty claims since the Step 2 Warranty Review
4. Discuss any questions regarding the Dealer Dashboard
5. Review the implementation of the action plan the Dealer has made

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