REIMBURSEMENT OF LABOR
The labor reimbursement is based on the dealer's approved labor rate in effect on the date of the
repair and the time associated with the repair/replacement. For most repair operations, Volkswagen
has specified flat rate times for labor operations published on ElsaPro, which must be used, except
where otherwise stated in written Volkswagen policy. For exceptional conditions, the actual punched
time (A-time) may be used.
REIMBURSEMENT OF LABOR
Reimbursed labor

=

Repair time x

2.4.2.1

REPAIR TIME

2.4.2.1.1

FLAT RATE TIMES FOR LABOR OPERATIONS

Labor rate

Flat rate times for labor operations are based on the repair procedures approved by Volkswagen and
are provided for each model on ElsaPro. They determine the labor portion of a repair and contain the
average time for set-up, standard diagnosis, and repair procedures.
Claimed labor operations must be consistent with the customer concern and repair work performed.
Dealers are allowed the flat rate times that are current at the time the repair/replacement is performed.
Re-evaluation and establishment of a labor operation: Dealers may request re-evaluation of an
existing labor operation perceived as incorrect. Dealers may also request the establishment of a new
labor operation if the labor operation is warrantable but not listed on ElsaPro.
 Note: All concerns or requests regarding SRT discrepancies or revision requests, must be
submitted by using the ElsaPro Feedback Button. When submitting feedback, the dealer must
follow-up the request by checking the ElsaPro Feedback Button for a response. To read a
response, choose the View option. A response will be provided when the status of your original
Feedback Form is Closed.

2.4.2.1.2

ACTUAL CLOCKED TIME (A-TIME) AND DIAGNOSIS TIME
A-TIME
A-time is the total clocked time a technician works on a repair. It must be realistic and fair. Examples
of conditions when A-time may apply are listed in the table Actual clocked time.

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ACTUAL CLOCKED TIME
Additional repair steps

Necessary repair steps are not included in labor operation, e.g.
a stud breaks while removing a water pump.

Missing labor operation

The labor operation for the repair is not published in ElsaPro.

Less time needed than
labor operation

The repair is not carried out to the full extent or requires less
time than described in labor operation

Overlapping labor
operations

The repair shows common procedures with one or more repairs
being performed on the same vehicle

Diagnosis time

Diagnostic procedures are required to investigate the source of
the problem and there is no diagnosis labor operation

DIAGNOSIS TIME ASSOCIATED WITH A REPAIR FOR A DEFECT IN MATERIAL AND/OR WORKMANSHIP
Diagnosis time may be required to substantiate a customer complaint or to verify that a repair
corrected the failure. Diagnosis time is not included in repair SRTs with the exception of visual
diagnosis.
The following diagnostic labor operations must be utilized:
 01500000: Guided Fault Finding or Guided Functions (applicable to MY 2004 and newer models
unless otherwise instructed in Volkswagen publications such as Technical Bulletins, Updates,
Campaign Circulars, etc. In some cases the procedures in these documents may instruct the
technician to specifically use Self Diagnosis.)
 01320000: Technical Diagnosis
Diagnosis time may be claimed starting after the vehicle is brought into the work bay and before any
repairs or services are performed.
DIAGNOSIS TIME WITH MIL ON AND NO REPAIR REQUIRED
When there is a MIL on and there is no defect associated, only the time to interrogate the control
modules and clear DTC codes will be reimbursed (based on the time expenditure identified on the
GFF diagnosis log). The GFF time should be claimed using labor operation 01500000.
A-TIME OR DIAGNOSIS TIME OVER 1 HOUR
The Service Manager/Service Director is responsible for repairs requiring A-time or diagnosis time
over 1 hour and must approve the extra time by:
 signing and dating the approval on the repair order
 clearly and legibly recording any technical information on the repair order to validate the extra
time, including a road test
DIAGNOSIS TO IMPROVE THE CUSTOMER EXPERIENCE (DICE)
Under certain conditions and criteria, the DICE warranty policy will allow dealers to claim up to 50 time
units (1/2 hour) of techinical diagnosis when a customer concern cannot be duplicated and/or when
the vehicle is found to be operating normally when compared to the same or a similar vehicle.

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Actual DICE time expenditure (maximum 50 time units) may be utilized once per customer visit (repair
order). All DICE claims must be substantiated with appropriate documentation. All DICE time requires
the full signature of the Service Manager/Service Director or designate. The authorization signature
must be placed next to the technician notes describing the diagnosis steps on the repair order hard
copy.
Only diagnosis time which can be influenced at the technician level is included in this policy such as:
 time used to investigate customer concerns, such as noises, fluid leaks, etc.
 Guided Functions or scan tool diagnosis when no MIL is on
 road test
 time used when a customer concern cannot be duplicated or when the vehicle is found to be
operating normally when compared to the same or a similar type vehicle
The DICE warranty policy is only applicable while the vehicle is covered under the New Vehicle
Limited Warranty or the Powertrain Limited Warranty.
The DICE labor operation (01329599) is the only line item allowable on a DICE claim.
The DICE claim comments must include the following:
 The statement: "DICE: Vehicle is found to be operating normally when compared to same or
similar type vehicle"
 The customer concern
 Applicable technician notes
DICE time is not claimable for customer concerns involving simple visual inspections or when basic
component function may be verified by the Service Consultant during write-up and does not involve
technical diagnosis (e.g. wiper blades are streaking or right rear speaker is inoperable).
Every Volkswagen dealer is eligible to participate in the DICE policy; however, Volkswagen of
America, Inc. reserves the right to cancel participation for any dealer if the policy is not used
appropriately for the purpose intended.
DIAGNOSIS REQUIRING ROAD TESTS
The repair order must clearly show the vehicle mileage "before" and "after" the road test as well as
detailed technician notes explaining the customer complaint, cause, and correction to justify and
support the claim. Road tests may not be claimed more than one time per repair order.
PUNCH TIME/DOCUMENTATION REQUIREMENTS FOR A-TIME AND DIAGNOSIS TIME
Detailed technician notes (including Dealer Technician Helpline recommendations, date of contact and
case number, when applicable) must be recorded on the repair order to support the A-time and/or
diagnosis time. The Dealer Technician Helpline case number (when applicable) must be entered in the
claim comments. (See section 3.57 Technician Helpline/VTA Case Number for conditions when a
Technician Helpline case number is required.)
A-time and diagnosis time must be supported with actual punch time (do not round up or down, if the
punch time is 27 time units, then enter 27 time units, not 25 or 30).

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A-time and diagnosis time require a separate "on" and "off" punch time unless used in combination
with a SRT operation, in which case punch "on" when the repair is started and "off" when completed.
The technician may also punch individually for A-time and/or diagnosis time if used in combination with
a SRT operation in order to preserve the technician's efficiency on the SRT operation.
DIAGNOSIS EXCLUSIONS/RESTRICTIONS
 Diagnosis time may not be claimed when the technician does not have sufficient technical training
or experience for the system or model of vehicle being repaired. The Service Manager/Service
Director is responsible to assign work based on the technician's training and experience.
 Do not claim diagnosis time while on hold or obtaining information from the Volkswagen
Technician's Helpline.

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LABOR RATE INCREASE OPTIONS
Two options are available for dealership warranty labor rate increase requests
 Option 1 is an automatic increase process based on changes in the U.S. Consumer Price Index
(CPI).
 Option 2 compensates dealerships at an individual labor rate that takes into consideration the
rate the dealership is charging their retail customers as well as the competitive market situation.
The warranty labor rate reimbursement does not relieve dealerships from the obligation to comply with
applicable Federal, State or local laws. All Warranty Labor Rate Increase forms are available on
WISE under Resource Center > Forms > Labor Rate. Mail completed forms and supporting
documentation to the following address:
Volkswagen of America, Inc.
Attn: Warranty Process and Labor Rate Specialist
3800 Hamlin Road
Auburn Hills, MI 48326

CHANGING THE WARRANTY LABOR RATE
Common to both options below:
A sign with the following inscription must be prominently displayed in the customer reception area,
stating the posted hourly labor rate: “Customer labor charges are based on a rate of $… per hour (or
flat rate hour) based on … (identify the system chosen by the dealership)”. The sign must not be less
than 20"x20" with 1¼" high letters in dark bold print on a suitable light background. Contact
State/Local Agencies to determine if this requirement complies with your local requirements.

OPTION 1 (CONSUMER PRICE INDEX BASED RATE)
This option is a three-year enrollment commitment, which provides an automatic warranty labor rate
increase based on the change in the U.S. Consumer Price Index for the previous 12 month period
ending in February. Note: The official CPI will be determined from the US Government website
www.bls.gov (CPI-U).
Guidelines
 A dealership can choose the Option 1 program by completing and submitting an enrollment form
to the Warranty Process and Labor Rate Specialist from March 15th through April 30th.
 When enrolling under this option, the increase may be prorated based on the number of months
since the dealership’s last increase.

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 While enrolled in the Option 1 plan, the dealership will receive a Warranty Labor Rate Increase
each June 1, during the three-year enrollment period. Once enrolled, you cannot go back to
Option 2 until the three year term ends.
 Once the three year enrollment term ends, dealership must re-enroll if they choose to continue in
the CPI program.
 The amount of the annual CPI increase will be capped at 4%. If the CPI change is negative, the
dealership’s warranty labor rate will not decrease and the rate will continue at the current warranty
rate.
 For new dealerships, please refer to the procedure outlined on page 59 of this Policy.

OPTION 2 (EFFECTIVE RETAIL/MARKET RATE)
The dealership may make a written request to the Volkswagen Warranty Process and Labor Rate
Specialist for a re-evaluation of the labor rate based on the dealership’s current retail rate charged to
customers as well as the competitive labor rate survey, except where otherwise specified by State law.
Changes to the dealership’s labor rate are effective for repairs made on or after the effective date.
Repairs made prior to the effective date of the new labor rate will be reimbursed at the previous
warranty labor rate.
Guidelines
 Requests for re-evaluation are limited to once per 12-month period from the effective date of the
last warranty labor rate increase.
 Increase requests will be limited to the months of June through March.
 The requested warranty rate may not exceed the effective retail rate. In the event the retail rate
for customer-pay is reduced, the Volkswagen Warranty Labor Rate Specialist must be notified
within 10 days.
 Volkswagen may deny a labor rate increase request if documentation submitted does not support
amount requested. In case of a denial, no further request may be made within a 90-day period
from the date the original request was denied.
 Volkswagen reserves the right to request additional supporting information at any time. If the
dealership is not in compliance with Volkswagen Warranty policies for labor rate increase
requests, the former rate will be re-implemented, and the dealership will be debited retroactively
for any warranty over-payment.
 The Dealer Request for Warranty Labor Rate Increase form must be completed concurrently,
signed by the Dealer Principal, and forwarded to the Volkswagen Warranty Labor Rate Specialist
together with all required documentation.
 The increase amount offered to Dealers under this option will be derived by using the calculated
effective labor rate not to exceed the average market labor rate.
 Volkswagen may or may not grant the request for change based on the information provided.
 To appeal the warranty labor rate increase decision, please submit your calculation concerns in
writing. Submit your letter, along with a copy of the decision letter received from the Warranty
Process and Labor Rate Specialist to the following address:

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Volkswagen of America, Inc.
Attn: Volkswagen Warranty Compliance and Cost Manager
3800 Hamlin Road
Auburn Hills, MI 48326
Instructions for Completing the Warranty Labor Rate Increase Request Forms
 Repair Order Analysis
1. Enter dealership name, dealer number, address, and survey completion date.
2.
3.

Dealerships may use labor operations published on ElsaPro or use their own customer labor
time charges. Whichever system is used, it must be used consistently.
Obtain a sufficient quantity of numerically consecutive repair orders from the past 12 months
of business to provide 30 Volkswagen customer-pay repair orders for use in completing the
Repair Order Analysis. Repair orders that are not eligible for calculation must also be listed.
Do not include time units and labor from these repair orders.
Assign consecutive numbers starting with 1 to customer-pay repair orders and fill in the
number in column "#" until 30 Volkswagen customer-pay repair orders are listed. For noneligible repair orders, assign the abbreviations below from the list Non-eligible repair orders
for labor rate calculation in column "#".
NON-ELIGIBLE REPAIR ORDERS FOR LABOR RATE CALCULATION
ABBREVIATION

REPAIR

ABBREVIATION

REPAIR

B

Body

O

Other Make

C

Campaign

P

Paint

F

No Charge Scheduled Maintenance

V

Void

I

Internal

W

Warranty

S

State Inspection

EM

Exempt Menu Items*

* Exempt Menu Items are limited to the following: Lube, Oil & Filter Changes, Battery
Replacement, Brake Replacement (pads, rotors, shoes and drums), Wheel/ Tire repair or
replacement (including Alignment, Balancing, and Rotation) and Scheduled Manufacturer
Maintenances. This does not include Dealer suggested services that are not consistent with
the Owner’s Manual.
4.

Fill in other columns with
− Repair orders in numerical sequence
−
−
−

5.
6.

Labor operation (from repair order), indicate type of work
Time units charged (from repair order)
Labor charged in $ after any discounts (from repair order)

Add the "time units charged" and the “labor charged" from each repair order and list in the
appropriate column.
Highlight the eligible 30 Volkswagen customer-pay repair orders and the corresponding time
units charged, labor charged, including applicable discounts.

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To calculate the "average labor rate" for the analysis, divide the "total labor charged" by the
"total time units charged".

Photocopies of all Volkswagen repair orders listed in the analysis must be included with the
request. Repair orders must include the time units and dollars charged listed in the analysis.
Handwritten changes to repair orders will not be accepted.
 Labor Rate Survey
1.

2.

Survey local dealerships of competitive makes listed on the Labor Rate Survey form by
telephone and enter the dealership’s name, address, telephone number, warranty and retail
labor rates. This survey may not include information from any dealership in which the
Volkswagen Dealer Principal holds a business interest.
The dealership should list competitive dealers within a "Geographical Area". The dealership
may select any/all manufacturers listed on the Labor Rate Survey within 10 miles. If the
dealership does not have at least 8 of the listed manufacturers on the Labor Rate Survey
within 10 miles, then the dealership must select the closest manufacturer listed, within 25
miles of the Dealer. When manufacturers listed on the Labor Rate Survey form are not in the

3.
4.

Geographical Area, please leave the line blank and indicate “not in area”.
Total the "warranty labor rates" and divide by the number of surveyed dealerships to