Issue Date: Warranty Administrator for Ford Dealers July 15, 2009, Posted On: 7/15/2009
Behind the Ford changes
Since Ford is the lone Detroit Three member to
survive outside Chapter 11 and has not taken advantage of government funding,
Ford execs are feeling the financial pressure internally. In order to reduce
cash outlays, Ford looked at one of the biggest numbers on its income statement
and decided to cut the dealerships bonuses and advertising money.
Ford plans to cut $300 for
every car sold in the next five years, from both sales and marketing bonuses.
In all, the company's accountants say Ford will save up to $600 million a year,
at Ford's 2008 sales levels.
In addition, the time allowed
for filing warranty claims will be cut from 90 days to 30, starting September 1.
Hopefully, the impact will be minimal since Ford says over 94 percent of
warranty claims are already filed within 30 days of the repairs. Handling
charges on parts returned will also be increased after 45 days.
At a date yet to be
determined, Ford will also end the reimbursement for a full tank of fuel. The
charge will be moved from the Ford reimbursed wholesale price to the dealer
invoice.
