2013/03/13 Council Agenda Packet

12 Conditions For New Vehide Pre -Delivery. Maintenance and Storage • The Warranty Service Provider agrees: • To perform a vehicle inspection upon carrier delivery per Ford Motor Company Warranty and Policy Guidelines, noting any damage or mis-built conditions on the Bill of Lading. Any concerns must be reported per Warranty and Policy guidelines within 48 hours of vehide delivery. • Vehides must be stored and maintained per Ford Motor Company Warranty and Policy guidelines (Section 2). • To perform new vehide preparation and conditioning in accordance with published Ford Motor Company procedures, including, but not limited to, the "Pre -delivery service Record." • To maintain a copy of the completed "Pre -delivery Service Record" for each vehide upon which new vehide preparation and conditioning was performed. • To provide a copy of the completed "Pre -delivery Service Record" to selling Ford /Lincoln Dealership within 30 days of pre -delivery completion. That reimbursement for pre -delivery inspection will be made by Ford Motor Company to the selling Ford/Lincoln Dealership and payment to the Warranty Service Provider for such work will be the responsibility of the selling Dealer as agreed by the two parties outside of this agreement with Ford Motor Company. • To maintain a copy of the service records for each vehide upon which a pre -delivery inspection and/or warranty work was performed for a period of one year from date of payment. Warranty Claim Auditing and Assessment: • Ford Motor Company may audit all Warranty Service Provider records pertaining in any way to new vehicle preparation and conditioning, warranty or policy repairs, induding the repair orders (hard copy), the technicians' payroll records and any applicable outside sublet parts and/or labor invoices. Such records must be retained by the Warranty Service Provider for a period of at least one year from date of payment. Where such records are not available for at least one year or are incomplete for related repairs for which the Warranty Service Provider has previously been reimbursed, appropriate chargeback action may be taken by Ford Motor Company. Ford Motor Company reserves the right to review, assess and potentially charge back (partially or in full) any daim submitted for warranty payment that does not meet the requirements of Ford Motor Company Warranty Policy. Any payment for a warranty, policy, Field Service Action, Customer Satisfaction Program, Spedal Service Instrud9on, or service contract repair can later be charged back if the payment is not justified. These chargeback's are made for daims which are duplicated, unsubstantiated, or which do not meet the requirements of Ford Warranty Policy. • In addition, the Warranty Service Provider shall allow persons designated by Ford Motor Company, at reasonable times and intervals and during normal business hours, to examine the Warranty Service Provider's fadlities, operations and records, the Warranty Service Provider's stocks of vehides at the Warranty Service Provider's facilities for service or repair, to test the Warranty Service Provider's equipment, and to check and inspect the Warranty Service Provider's records and documents. Ford Motor Company may charge back to the Warranty Service Provider all payments or credits made by Ford Motor Company pursuant to such daims or otherwise which were improperly daimed or paid. For example, reimbursement will not be made for shop comeback (repeat) repairs resulting from improperly performed warranty repairs, or for failures resulting from the use of non -Ford parts, or vehide modifications, or for work not accomplished and daimed in accordance with the Warranty and Policy Manual. • The Warranty Service Provider understands that submission of any improper daim, induding but not limited to false or fraudulent daims, shall result in chargeback and, at Ford Motor Company's sole discretion and option (and without waiving Ford Motor Company's right to terminate or cancel with or without cause), result in termination/cancellation of this Agreement. Fleet Warranty Counseling Process: • Ford Motor Company reserves the right to conduct Warranty Counseling actions at Ford Motor Company's discretion. • Warranty Counseling actions may include: • A telephone based warranty repair process claims review. • An on -site Warranty Review conducted by a Ford Warranty Operations Representative. • An on -site Warranty Audit conducted by a Ford Warranty Auditor inspecting up to 12 months of warranty claim submissions. • Follow-up Warranty Audits if determined necessary from previous Warranty Actions - 4-20-12 v.8 Page 2 of 5 51