confirmation of the new rate and effective date via email.
Establishing a warranty labour rate for new dealers:
New dealerships are required to conduct the Market Warranty Labour Rate Survey in the Labour Rate Increase Request Form as
described in section “Changing the warranty labour rate”. The dealership will assume the relevant market average until the
dealership is able to provide the Repair Order Analysis. The Market Warranty Labour Rate established for the new dealer cannot,
at any time, be greater than the customer-pay effective rate at the dealership. When the first 30 Volkswagen Group Canada Inc.
customerpay repair orders can be provided, the Repair Order Analysis in the Labour Rate Increase Request Form must be
completed as described in section “Changing the warranty labour rate”. In the event the Effective Repair Labour Rate is lower
than the Average Market Warranty Labour Rate granted to the dealer, the Effective Repair Labour Rate will be used for Warranty
reimbursement. The dealership will be debited retroactively for any Warranty over-payment claims that have already been
reimbursed at the Average Market Warranty Labour Rate.
Taking over an existing dealership
The dealership will assume the warranty labour rate of the previous dealer. When able to comply with the conditions in section
“Changing the warranty labour rate” the dealership may submit a request for a labour rate increase.
See Warranty Field Specialist Contact Information published on ServiceNet under Warranty Information / Canada /
Contact Information for mailing address of your respective Warranty Field Specialist.

Volkswgen Group Canada, Inc.

BACK

182

FORWARD

Warranty Policies and Procedures

6.5.5 Reimbursement for Sublet Repairs
Certain repairs may require specialized tools, parts, equipment, and skills not directly available to an authorized Volkswagen
repair facility. These repairs can be delegated to an external business location having the certified expertise to perform such
repairs. Sublet repairs are only reimbursed under warranty for those which require one of the following tasks if, and only if, they
cannot be performed at the dealership:
•
•
•
•
•

Welding
Painting
Repairing seat covers
Installing convertible tops
Replacing glass

The dealer must ensure that the sublet repair meets Volkswagen quality and safety standards. Only Volkswagen Genuine Parts
are to be used except when a special part not offered through VGCA's Parts Program is required. A part not offered in the VGCA
Parts Program is one that is obtained from an outside vendor that meets all Volkswagen standards of quality and safety and is
approved by your Warranty Claim Specialist.
The supplier's repair invoice must be cross-referenced to the customer's repair order and VIN, have a full description of the
customer complaint, technician's written notes explaining the cause for a sublet warranty repair, and why an outside service was
required to correct the defect.
Labour Reimbursement
It is the dealer's responsibility to determine the most economical method of sublet repair meeting Volkswagen's quality and safety
standards. Claims submitted using the outside vendor’s invoice amount are to be submitted for payment in the exact amount
billed to the dealer. There is no allowance for additional “mark-up” of the invoice. Sales tax must be excluded from claims
submitted using outside vendor’s invoiced amount.
Dealerships conducting sublet warranty repairs to be submitted for reimbursement will comply with the following:
•

Repairs claimed in SAGA as “Outside Labour” will NOT be accepted if the total sublet charge is greater than the amount
calculated by multiplying ElsaWeb’s Suggested Repair Times (SRTs) with the dealer’s Warranty Labour reimbursement
rate. Refer to the example below:
Sublet Charge

$300.00

SRTs for Operation

200 TUs

Warranty Labour rate

•

x $100.00/hr

Maximum Allowable Amount

$200.00

TOTAL Eligible to be Claimed

$200.00

Repair amounts claimed in SAGA as “Outside Labour” are NOT to exceed the amount charged to the dealer by the
outside vendor. This applies even if the amount billed to the dealer is less than the amount calculated by
multiplying ElsaWeb’s SRTs with the dealer’s Warranty Labour reimbursement rate. Refer to the example below:
Sublet Charge

$150.00

SRTs for Operation

200 TUs

Warranty Labour rate

x $100.00/hr

Maximum Allowable Amount

$200.00

TOTAL Eligible to be Claimed

$150.00

Parts Reimbursement
The following are the reimbursable amounts on the sublet invoice:

Volkswgen Group Canada, Inc.

BACK

183

FORWARD

Warranty Policies and Procedures

•
•
•

If the part is a genuine Volkswagen part and supplied to the sublet shop by the dealer, reimbursement will be at normal
warranty parts prices.
If the part is bought from an outside supplier and is not in the Volkswagen Parts Program, reimbursement will be at actual
Dealer cost with no handling reimbursement.
If the part is bought from an outside supplier and the part is in the Volkswagen Parts Program, then no parts
reimbursement will be made. Documentation of the sublet parts purchase must be retained and made available upon
request.

All copies of sublet invoices must be filed with and attached to the warranty repair order.
All claims will be reviewed by a Warranty Claims Specialist.

Volkswgen Group Canada, Inc.

BACK

184

FORWARD

Warranty Policies and Procedures

6.6 Exclusions and Additional Information
6.6.1 Tow-Ins, Claim Coding
If a vehicle has been towed to a dealership due to a matter that is covered under warranty, the claim must be clearly coded to
indicate the tow-in. It is important to stress that tow-ins cause high customer dissatisfaction. To ensure that we can identify and
accurately count these cases in our warranty system, code them in SAGA as follows.
•
•

In the “Damage” area of the Manual Claim Entry screen, there is a separate “Tow in” check-box that must be selected if
the vehicle was towed to the dealer (see below).
In cases where multiplied repairs are done, only repair that fixed the vehicle should have “Tow in” checked.

Volkswgen Group Canada, Inc.

BACK

185

FORWARD

Warranty Policies and Procedures

6.6.2 Repairs Completed At or Near Warranty Expiry Date
Repair Completion Date Policy
If a vehicle is still within warranty after eligible repairs were completed, dealers are to use the last punch date of repair on the RO
when claiming in SAGA. Failure to use the last punch date may result in charge-back unless the vehicle falls out of warranty, as
described below.
In the event where a vehicle surpasses the warranty period (in mileage and / or time) before the repair(s) can be completed,
supporting documentation (i.e., punch times, diagnostic prints, etc.) is required to show that the concern was diagnosed while the
car was still covered under a related Volkswagen Warranty. In this case, the date of repair entered into SAGA should be that of
the date of diagnosis.
Volkswagen Parts Back-Order
If the delay in completing the repair was due to a Volkswagen parts back-order, contact your Warranty Claims Specialist (WCS)
and provide verification of the parts back-order. Dealers must follow proper ordering procedures and contact the PDC for any
ordering questions.
Repairs delayed due to parts availability must be justified in SAGA under the “Claim Comments” field by providing the appropriate
Doc Flow information.
In order to support your claim, several documents must be retained and made available upon request. These include, but are not
limited to:
•
•
•
•

Local special order form (if used)
Print of the screen supplying sales documentation number
Packing slip
Any document supporting the backorder

Volkswgen Group Canada, Inc.

BACK

186

FORWARD

Warranty Policies and Procedures

6.6.3 Address or Ownership Change
Dealers must ensure that correct customer contact data is available to the manufacturer at all times. Volkswagen must be notified
of any change of address or vehicle ownership. Please change the address of the new owner in SAGA. A customer may use the
prepaid "Notice of address change/used car purchase" post card, which is located inside the Warranty Booklet.

Volkswgen Group Canada, Inc.

BACK

187

FORWARD

Warranty Policies and Procedures

7 Repair Order Administration
7.1 Add-On Repairs
An add-on repair to a warranty claim requires the date and the signature of the Service Manager or designate (first and last name)
before the work is performed. A Service Manager designate is defined as an administrative employee knowledgeable in
automotive repairs, selected by the Service Manager, and approved by the Area Team. Technicians do not have the authority to
approve add-on repairs.
Several provincial Motor Vehicle Dealer Acts regulate in-dealership practices whereby add-on repairs be authorized in the
following manner:
Customer Add-On – In-dealership
•

Client must sign & date each add-on line on the repair order hardcopy prior to repairs being undertaken.

Customer Add-On – Phone-in
•
•
•
•

Name of individual phoning in add-on repair(s) must be noted beside each repair line added onto Repair Order hardcopy.
The time & date when add-on(s) are phoned in must be noted beside each repair line added onto Repair Order hardcopy.
Add-on line(s) must be signed & dated by Service Manager or designate at the time of call-in.
Client must sign each line added onto the repair order hardcopy prior to vehicle release once the repairs are completed.

Dealer Add-on – Lacking Customer Complaint
•
•
•

Add-on line(s) must be signed & dated on repair order hardcopy by Service Manager or designate prior to repair(s) being
undertaken; but only after the new concern has been inspected / verified.
Client must sign each add-on line on repair order hardcopy prior to vehicle release once the repairs are completed.
Note: Add-on repairs lacking a customer complaint can only be performed for safety items or for a repair that - if not
completed now - will result in a more costly repair soon after.

Please contact the assigned Warranty Claim Specialist (WCS) directly or the VGCA Warranty Group at vwgcwarranty@vw.ca with
any specific questions or concerns with regard to the criteria for add-on repairs.

Volkswgen Group Canada, Inc.

BACK

188

FORWARD

Warranty Policies and Procedures

7.2 Technician Efficiency and Productivity
Technician Efficiency
Understanding a technician’s repair efficiency is a valuable way of determining the technician’s capabilities of performing a quality
repair in a timely manner. Low repair shop efficiency can result in the loss of available hours that could have been sold by your
service department.
Calculating Technician Efficiency
Divide the total SRT by the actual clocked time (A-time) for a repair and then multiply the results by 100.
(Total SRT ÷ A-time) x 100 = Technician’s Efficiency %
Factors and Guidelines
Dispatching repair work to technicians who are not trained in the repairs or services to be performed, or with a service department
not using an effective time control system correctly are just a few examples that can cause low technician repair efficiencies.
Conversely, excessively high efficiencies may attribute to improper or incomplete repairs resulting in workshop comebacks and
dissatisfied customers, and may affect your Customer Satisfaction Index (CSI).
A good benchmark for repair efficiency is between 115 - 135%.
In VGCA’s experience, technicians who routinely complete warranty repairs with efficiencies greater than 150% of the SRTs for
single or multiple repairs on a repair order may not be following the prescribed step-by-step procedures outlined in ElsaWeb or
Technical Bulletins.
Claims from technicians performing warranty repairs on Volkswagen vehicles with efficiencies greater than 150% may be subject
to debit if the documentation to support the repair does not justify the time spent. Each repair will be judged individually based on
the merits of the available documentation. This includes, but is not limited to, a technician’s training certification and detailed
repair notes that explain each step of the repair in a clear, technically sound manner. The repair must have been performed using
the latest edition of ElsaWeb or Technical Bulletins.
IMPORTANT! Efficiency cannot be gained when claiming for "A" time, diagnosis or road tests.
Technician Productivity
Measuring productivity is a method of determining how available time is being utilized in the Service Department repair shop. Low
productivity means that “Time Control” is lacking and, therefore, may result in unnecessary losses in parts and labour sales. A
well-prepared Service Manager utilizing the time control process outlined here has a better opportunity to continuously monitor
and increase the Service Department’s productivity.
Calculating Technician Productivity
To accurately calculate your shop’s productivity, all technicians must punch “on” at the start of the day and punch “off” when
finished with work for the day. The same process of punching “on” and “off” applies prior to and after any W-Times (coffee and
lunch breaks, performing shop repairs, training or idle time, etc.), and must also be punched in the required areas on the Daily
Time & Payroll Record. This time is called “Daily Available Time” (time available for work). ERO Dealers can use the same
productivity guidelines noted above.
Productivity is measured by taking the total actual clocked time (A-time) for a given time period (a week, 2 weeks, a month,
quarterly, etc.) and dividing the total clocked time by the total available technician time during the same time period multiplied by
100. Shop Productivity can never surpass 100%, but the higher the percentage, the more “Daily Available Time” is being sold for
services and repairs, resulting in a more profitable Service Department.
(Total A-time ÷ Total Available Time) x 100 = Technician Productivity %
A good benchmark for productivity is between 90% and 95%.

Volkswgen Group Canada, Inc.

BACK

189

FORWARD

Warranty Policies and Procedures

7.3 Technical Helpline, VTA Access Codes, and VTA Case Codes
The Technical Helpline is not authorized to approve warranty repairs. The helpline should be contacted in every situation where
the technician cannot determine the cause of a concern after using the available diagnosis tools and/or published repair
procedure information. The helpline should also be contacted for additional considerations (see below).
When a repair is initiated at the Volkswagen repair shop, the technician can create a Volkswagen Technical Assistance (VTA)
Access Code if they expect to contact the Technical Helpline for assistance with the repair. Once the technician calls the helpline,
a case code can be created to validate that a call has been made. If the technician does not call the Technical Helpline within 24
hours of creating the VTA access code, the ticket will be closed out marked “invalid.”
Volkswagen Technical Assistance (VTA) case code requirements
A VTA case code is required when the following conditions occur:
•
•
•
•

Vehicle down for 2 days or more
Diagnostic time exceeds three (3) hours
Repeat repairs (vehicle returning for same or similar complaint) within 90 days of the original repair being completed
Prior to the replacement of any of the following components (even if replacement is the result of consequential damage):
o Any engine
o Any automatic transmission (Including DSG and Routan Transmission)
o Main wiring harness
o Convertible Tops - Mechanical defects only.

Note: VTA case codes are NOT required from the Volkswagen Technical Helpline before replacing a Valve Body and / or
Mechatronic Unit under warranty. As a substitute, technicians will be required to fill out a “VW Mechantronic Unit/Valve Body
Replacement Form.” This form must be attached to the repair order and any other related documentation. It must also be
combined with paperwork requested by the Warranty Parts Return Centre (WPRC). The form can be found by logging onto
ServiceNet under VGCA Warranty > Forms and selecting “Mechatronic Valve Body Replacement Form.”
The Volkswagen Technical Helpline must be contacted for authorization prior to each replacement. The VTA case code must be
documented on the repair order and in the “Claim Comments” section of the warranty claim.
Specific cases which require VTA case codes
A VTA case code and phone call is required before attempting a repair when any of the following conditions occur:
•
•
•
•
•
•

Thermal event
Airbag deployment
Unexplained acceleration, deceleration, and stalling while driving
Fuel leaks
Loss of braking ability verified
Shattered glass

The VTA case code must be documented on the repair order and in the “Claim Comments” section of the warranty claim.
New Vehicle Launch 90 Day Reporting
A VTA Case code and phone call is required prior to repair, for the first 90 days of a new vehicle/engine launch.
VTA Ticket requirements
The VTA ticket must be attached to the repair order with all fields completed.
Technician preparation
The following list indicates the required items the technician must have on hand when calling the Technical Helpline:

Volkswgen Group Canada, Inc.

BACK

190

FORWARD

Warranty Policies and Procedures

•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

VTA Access Code
Dealer number
Correct Technician’s name on the ticket
Attach 5051B/5052A/6150 GFF log from ODIS (if applicable)
Attach photos (if applicable)
Detailed customer complaint in VTA ticket
Dealer phone and fax numbers
Vehicle Identification Number
Vehicle MUST be present in Workshop
Condition must be verified/duplicated (if applicable)
ElsaWeb must have been consulted for pertinent repair information, including Technical Bulletins etc.
ODIS Guided Fault Finding (GFF), Guided Functions results (if applicable)
Printouts of all applicable tests on hand
“Check Sheets” (part of the VTA ticket) applicable to the concern
Engine or transmission serial number/code (may be required in some cases)

Reimbursement for components replaced per the Volkswagen Technical Helpline
In the event a technician is advised by a VGCA Technical Helpline Consultant to replace a part, which does not repair the vehicle
and it is not possible to use the part again, Volkswagen will reimburse the dealership for the component through the warranty
claim. The technician's time to remove and install the component is considered part of the diagnosis.
The reimbursement will be done under the following conditions:
•
•
•
•
•

Technician has inspected and tested all other relevant components accurately before Technical Helpline has come to the
conclusion to replace part
All results from the tests and Technical Helpline suggestions are posted, in detail, on the ticket and the repair order
Technician documents the VTA case code
The “Claim Comments” field of the warranty claim in SAGA must include the equivalent statement: "Part replaced as per
Tech. Line, did not fix vehicle; VTA case number ________". Note: a valid VTA case code is required, not an access
code. Example: “VTA case code XX-12345.”
Technician thoroughly completes all fields of the VTA Ticket

A warranty claim cannot be submitted until all related VW VTA tickets have been closed. All VW VTA tickets should be closed
within 24 hours of case resolution.
The time while being on hold with the Technical Helpline is not reimbursable.
Volkswagen will only reimburse non-defective parts if recommended by the Technical Helpline and Helpline call has been
properly documented.

Volkswgen Group Canada, Inc.

BACK

191

FORWARD

Warranty Policies and Procedures

7.4 Time Recording by the Technician
All repairs must be documented with a minimum of one (1) “on” and one (1) “off” time punch, or the ERO equivalent, per line item
of the repair order. The initial start time (punch time or entry time for ERO dealers) for a repair is when the vehicle is in the repair
bay ready to be worked on by the technician.
A-time and Diagnosis Time Punches
A-time (actual clocked time) and diagnosis time require a separate “on” and “off” punch time. If A-time and / or diagnosis time is
to be counted when used in combination with a SRT operation, the technician has the choice to simply punch “on” when the repair
is started and “off” when completed or to punch “on” and “off” for the SRT operation, then “on” and “off” for the diagnosis time and
/ or A-time separately. Individual punches can be used in order to preserve the technician’s efficiency on the SRT operation.
See below for examples of both types of time punching methods.
Time Recording Example
The normal SRT to replace a component in question is 1.0 hour (100 time units or TUs). The technician can carry out this repair
in 45 minutes (75 TUs), thus making him 133% efficient. The calculation is (100 ÷ 75) x 100. This claim would still be paid for 1
hour.
For this example, we will assume that a bolt’s head is rounded off and needs to be drilled out and tapped before the component
can be replaced. We will also assume that drilling out the bolt and tapping out the hole takes 0.5 hours (50 TUs).
If the punches are combined, (i.e. only punch “on” when the repair is started and “off” when the repair is completed, the
technician will show a total punch time of 1 hour and 15 minutes (125 TUs); 50 TUs for the "A" time and 75 TUs for replacing the
component.) a typical punch will show:
•
•
•
•

Punch On at 8.00; Punch Off at 9.25
The claim will be made up of 1 hour for the component’s SRT operation plus the remaining 15 minutes for the A-time.
Technician efficiency will be 100%.
A total of 125 time units may be claimed using the combined punch method.

If individual punches are utilized, the individual punches will show:
•
•
•
•
•
•

Punch On at 8.00; Punch Off at 8.50 (drilling out the damaged bolt)
Punch On at 8.50; Punch Off at 9.25 (replacing the component)
The first punch (drilling out the damaged bolt) will pay the complete 50 TUs as reflected by the punch.
The second punch of 75 TUs will support the claim for the SRT of 100 TUs.
Technician efficiency will be conserved at 133% and still be within VGCA guidelines.
A total of 150 time units may be claimed using the individual punch method.

The above examples are also true when claiming for diagnosing a vehicle using the VAS 5052 when the 5052 group of SRTs are
going to be claimed.

Volkswgen Group Canada, Inc.

BACK

192

FORWARD

Warranty Policies and Procedures

8 Parts
8.1 Genuine Volkswagen Parts
8.1.1 Genuine Volkswagen Parts Policies
Genuine Volkswagen Parts
Genuine Volkswagen parts are new or factory remanufactured replacement parts, accessories, and optional equipment for use in
the service or repair of Volkswagen vehicles if such parts, accessories and optional equipment are supplied by and purchased
from VGCA.
Genuine Volkswagen parts are required to be used for all repairs done at Volkswagen's expense and pursuant to Volkswagen's
warranties covering vehicles and Volkswagen's warranties covering replacement parts, accessories and optional equipment
supplied by and purchased from VGCA.
Non-genuine parts may be used for warranty repairs only if the warranty work is eligible for sublet to an independent repair facility
and the required parts are not in the Volkswagen parts program.
Except as noted above, VGCA will not reimburse the cost of non-genuine parts used for Volkswagen warranty repairs.
Disclosure of Non-Genuine Parts
In the event that non-genuine parts are used for warranty repairs, disclosure must be made to the customer that Volkswagen's
New Vehicle Limited Warranty (NVLW) and Volkswagen's Limited Warranty for Parts and Accessories do not apply to the nongenuine parts installed as part of the warranty repair. This could be accomplished by the use of a stamp or a handwritten notation
on the customer's repair order, such as "Non-genuine parts not warranted by VGCA" or "Non-genuine parts and labour warranted
by Dealer for __________ months or ______________ kilometres. Required parts are not in the Volkswagen Group Canada Inc.
parts program.” The Volkswagen Dealer Agreement provides that dealers will use their best efforts to promote the sale of genuine
Volkswagen parts.
Volkswagen Dealer Agreement
The Volkswagen Dealer Agreement states that dealers may not sell any parts which are not equivalent in quality and design to
genuine Volkswagen parts if the parts are necessary to the mechanical operation of Volkswagen automobiles.
The Volkswagen Dealer Agreement also states that Volkswagen dealers will not provide to their customer, as genuine
Volkswagen parts, any parts which are not new or factory remanufactured genuine Volkswagen parts.
Since Volkswagen vehicle owners are informed of the use of genuine Volkswagen parts in all warranty repairs, the Volkswagen
Dealer Agreement states it should follow that owners receive notification from the dealership whenever non-genuine parts are in
fact used.
Remanufactured Parts
For a vehicle in service, dealers must order and install remanufactured parts as opposed to new parts. Factory remanufactured
parts must be used / installed within 6 months after introduction of the remanufactured part by the Volkswagen Parts Division.
If a remanufactured part is showing as a back-order or is not in stock in Parts on Command, it is essential that the dealer contacts
their Warranty Claim Specialist (WCS) for assistance prior to placing an order for that part. They will require the following
information to be sent via e-mail in order to respond to the request for the part:
•
•
•
•
•

VIN
New Part Number and Availability
Remanufactured Number and Availability
Difference in Dollar Value
If a Loaner is required

In the event that a new part is installed instead of a remanufactured part without prior approval from your WCS, VGCA will only
reimburse the new part at the remanufactured cost.

Volkswgen Group Canada, Inc.

BACK

193

FORWARD

Warranty Policies and Procedures

New Parts
Repairs performed on vehicles prior to being placed in service must be completed utilizing new parts. Remanufactured parts may
not be used on such vehicles. The comments section of the warranty claim must indicate the use of a new part (i.e. new vehicle
in stock - replaced with new part number).
Should there be any discrepancies regarding the proper use of new and remanufactured parts, please contact the assigned WCS.
Economy Parts
Economy parts, or parts identified by their code suffix “JZW,” are only allowable for CPO Warranty repairs. Please refer to
Section 10.1.5, “Certified Pre-Owned Warranty, Additional Important Terms” for more information.
Vehicle Tuning or Modifications
Damage resulting from the use of new parts not sold or approved by Volkswagen and/or modification of the vehicle that alters the
original engineering and/or operating specifications such as tuning, alarm systems, or communication equipment is not covered
under any circumstance.
Examples of frequently damaged components due to suspension modification include but are not limited to the sound absorber
pan, tires, bulbs, interior trim, bumper cover, paint, brakes, and suspension alignment.
Examples of frequently damaged components due to tuning include but are not limited to the turbocharger, engine, powertrain,
and emission-related components, clutch, torque converter, brakes, camshaft, and premature wear.

Volkswgen Group Canada, Inc.

BACK

194

FORWARD

Warranty Policies and Procedures

8.1.2 Damaged Parts
Parts Damaged Prior to Use
Parts and accessories damaged (NOT defective) before installation or sale over-the-counter are not a warranty matter and are not
to be submitted under Volkswagen warranty. Instead, they are to be processed through the established facing (dedicated) Parts
Distribution Centre (PDC) claim procedure system for return or claimed with delivering carriers at the time of receiving. Please