Manufacturer
The manufacturer screams about being ripped off by the dealership for inflating warranty repair hours, and that the dealership is doing unnecessary warranty repairs. Both accusations are probably correct, but not necessarily for the reasons suggested by the manufacturer.
Dealership
The dealership moans and groans about how unfairly the manufacturer establishes and even reduces the hours allowed for each warranty repair. They also claim they have no say in how the hours were established in the first place. Both of these accusations are entirely correct. Manufacturers also have a policy of not paying for repeated warranty repairs to fix the same malfunction. How does the dealership respond to this? It’s not good. If the dealership sees a repeat problem, they must somehow make it appear to be different that the original malfunction. Charitably, this can lead to untruthfully describing a problem on the repair order. Remember, four repair attempts for the same problem is one of the criteria that defines what is and is not a lemon. Where’s the incentive to do honest, quality work?
Mechanic
The immediate effect of manufacturers cutting the flat rate (piece work) times is a reduction in the mechanics paycheck. In order to maintain the same pay rate the mechanic must work that much faster. Faster is not consistent with quality repairs, quite the contrary. At the same time the manufacturer is demanding higher quality repairs. It’s a Catch 22 wherein everyone loses. Add to this inadequate training at best and one has a recipe for the Lemon connection.
Consumer
The consumer has no idea about the complex business relationships that exist between manufacturers and dealers, nor do they have any interest. Why should they? The consumer’s needs are quite simple. Sell me a car for a decent price that does what the advertisements say it will. If it needs a repair, have someone competent and well trained do the work and for Pete’s sake get it right the first time.
Final Thoughts
There’s something seriously wrong with the system. It’s a system that rewards all the wrong things. Like many such systems in other parts of American business, this system rewards quantity, not quality.
There seems to be an inherent inability among business managers to draw a connection between quality and business success. The manufacturer sets up quality rewards systems, such as Ford’s Blue Oval, then turn around and cut the work/task hours arbitrarily, probably to allow a senior executive to look good by improving the bottom line of a quarterly report. The result is an immediate drop in quality work at the dealership. There are so many contentious viewpoints, and so little willingness among the players to correct the situation.
2007-02-21
15:28:37
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4 answers
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asked by
Anonymous
in
Cars & Transportation
➔ Maintenance & Repairs