One of the areas of losses that most people probably don’t realize is the warranty department. It’s not the fact that american cars need warranty repairs more often, but the fact that they are so lax in their enforcement policies that they lose money to crooked mechanics, which in my experience, are most of them. I’ve seen mechanics essentially steal. Granted, they will say they are only making a buck, and they aren’t ripping off the customer, so its no big deal. Example - customer brings in a 4 door sedan that the rear power window is sticking on. The technician gets paid for R&R of the power window motor under warranty, and the customer is happy as it is back and working. However, the tech never did the work, he simply slammed the door to free the motor.
Another problem the american automakers have, Ford in particular, is not claiming the old warranty parts. Think about it. You bring in your brand new mustang for some warranty work, say the rearend is making some noise. The technician replaces the gearset under warranty and you drive away happy. No big deal, and a $50 set of gears is no big deal if the tech takes them home and sells them to some poor soul on ebay. However, while the car was at the dealer, he also said there was a 3rd gear grind in the transmission and orders a new one under warranty. He swaps out the transmission, if he feels like it, but he has a nice new transmission to use or sell, along with the labor for swapping it out. He got paid for a transmission R&R and probably didn’t do it.
Ford at least, has a 30 day time period where they can pick up the old parts. If they don’t, it is supposedly destroyed. If by chance they do pick up the transmission, the tech simply pours some metal shavings into it, and there is no problem. If it isn’t picked up, then he gets a free transmission. I know plenty of techs that turn more than 100 hours of labor a week without breaking a sweat, and its usually due to this method.
The import makers are much more stringent on their warranty claims, even to the point of fasteners and gaskets. If you do replace a transmission, you can be sure it is going to be sent back, usually in the same box that the original was shipped in.
Some reasons for american automaker losses
Submitted by langsbr on Wed, 2007-08-01 22:33. automaker | chevrolet | dealerships | ford | GM| Similar entries |











