Claim Coding Specifications
Claim Type:
1SP
Service Number:
TWNG
Damage Code:
0011
Outside Labour Operation:
TWNG 11 00
In the first four positions of the comments field enter
the Service Number of the failed component that
Claim Comments:
caused the vehicle to be towed. Next enter the city
where the vehicle was towed from and the
approximate km towed.
Note: Mark Outside Labour as causal

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12.5 Exported and Imported Vehicles
12.5.1 Exported Vehicles / Warranty Outside of Canada
VGCA is provided with VINs for vehicles that are exported to other countries. When this information is received, the Volkswagen
Vehicle Data File is coded to stop the processing of all warranty claims, recalls, or campaigns in Canada.
Exported Vehicles
ElsaWeb contains information that identifies the vehicle with a STATUS CODE "E" / Exported Vehicle. Exported vehicles do not
have warranties covered by VGCA. Please refer to the header, “Repairs Required While Travelling Out of Country,” under
Section 1.1.1 “Warranty Coverage and Guidelines, All Warranty Types.”
Canadian Vehicles Requiring Warranty Repairs While Travelling in the United States
If a Canadian Volkswagen vehicle requires warranty repairs while travelling in the United States, the repair should be performed
by an authorized Volkswagen dealer. If the vehicle is within the Canadian warranty, United States dealers can submit a warranty
claim. As of MY09, proof of Canadian residence is required.
If the United States dealer cannot submit the warranty claim, the customer may be asked to pay for the repair. On the customer's
return to Canada, they should present the invoice to a Canadian Volkswagen dealer, who should submit a claim on their behalf
and obtain reimbursement for them.
United States Vehicles Requiring Warranty Repairs While Travelling in Canada
If a United States Volkswagen vehicle requires warranty repairs while travelling in Canada, the repair should be performed by an
authorized Volkswagen dealer. If the vehicle is within the United States warranty, Canadian dealers can submit a warranty claim.
As of MY09, proof of United States residence is required.
If the Canadian dealer cannot submit the warranty claim, the customer may be asked to pay for the repair. On the customer's
return to the United States, they should present the invoice to a United States Volkswagen dealer, who should submit a claim on
their behalf and obtain reimbursement for them.
Canadian Vehicles Requiring Warranty Repairs While Travelling outside Canada or the United States
If warranty repairs are necessary while an owner is temporarily traveling abroad (outside Canada or U.S.) and the repairs are
covered under VGCA warranties, but not under the warranties offered in the country the owner is visiting, then payment for the
repairs may be required by the owner.
Signed repair orders and / or bills covering the repair may be submitted to Volkswagen Customer Care for review of possible
reimbursement after the warranted repair is completed, or to an authorized Volkswagen dealership upon returning to Canada.

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12.5.2 Imported Vehicles without Canadian Specifications
Vehicles without Canadian specifications that are sold in foreign countries and imported to Canada will be covered under the
terms of the warranties provided by Volkswagen for the country that the vehicle was originally specified for (except the United
States). VGCA is not the warrantor of those products. As a courtesy, VGCA will process warranty claims submitted by its dealers
who perform the warranty service. The dealer should examine the written warranty the customer was provided in order to
determine coverage. Warranty claims must be handled manually. Mail the request for reimbursement and the following
documents to the Volkswagen Customer Care group. Cost for eligible claims will be reimbursed to the dealer by cheque.
•
•
•
•

Copy of the warranty voucher from the Warranty booklet with VIN, name, and address of the vehicle owner.
Original repair order /sublet bill
Technician's punch time from back of the hard copy of the repair order
Import documents

Parts are subject to submission request and should be retained until the claim has been paid.

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12.6 Mediation and Arbitration
12.6.1 Arbitration Program
Canadian Arbitration Program
The Canadian Motor Vehicle Arbitration Plan (CAMVAP) is available to every retail owner (of a vehicle four model years old or
newer) free of charge and on a nationwide basis.
Customers wishing to utilize the CAMVAP plan should be asked to call toll-free:
1-800-207-0685

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12.6.2 Arbitration Prevention
FOM / Technical Helpline involvement
•
•

If a customer has been in twice for the same repair or has accumulated 2 days of down time and is still dissatisfied,
please inform your FOM and the Technical Helpline promptly.
Failure to inform your FOM and the Technical Helpline could result in a warranty review and possible dealer debit for
warranty claims or repurchase / replacement. Please review this procedure with your FOM.

Repair Orders
•
•
•
•
•

Write "Car is operating according to manufacturer's specifications" when addressing a service issue where the complaint
cannot be duplicated.
Do not write "Could not duplicate problem" on the R.O. because that statement may lead arbitrators to believe that a
problem actually does exist.
If parts are changed when unable to duplicate, the R.O. should state: "Even though we could find no problem with
alternator (or whichever part applies), we replaced for diagnostic purposes."
R.O.'s must state the components tested and the tests performed on the vehicle.
Use actual in date / out date on R.O.'s. Do not use the invoice date. Using the actual in date / out date ensures accuracy
in tracking the amount of days a vehicle is downed.

Arbitration Hearings
•
•
•
•
•

Upon request, Service Managers must be present at hearings. Arbitrators want to hear from the person who repaired the
car.
Preparation for hearings is important for Service Managers. Questions to Service Managers should be answered in an
affirmative and positive manner (i.e., "Yes, the car was repaired” or “Yes, car was test-driven").
Service Manager should not state that problem "could not be duplicated." This statement gives the impression that a
problem does exist. Service Manager should be confident and confirm his technical expertise and background.
Statements in cases involving customer abuse or modification cases must be direct and to the point. "This is how it
happened. This is the only way it could have happened."
Dealers should not give customers letters making statements about vehicle repairs. The letter can often hurt the
manufacturer later in a hearing.

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12.6.3 Special Extensions
In individual cases, VGCA may provide a retail customer with a letter granting a special warranty extension beyond the normal
limitations. The letter assigning an extension number will be issued by the Volkswagen Customer Care Centre.
When the dealership submits a warranty claim for a vehicle covered by a special warranty extension it must:
•
•
•
•
•

Enter the extension number in the “Claim Comments” section of the claim
Enter claim type 2CM and receive authorization as usual (or be a current self-authorizing dealership)
Use Service Number “X091”
Use 4-digit labour operation “1000”
Use Outside Labour Operation “OLO”

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12.7 Exceptional Situations
12.7.1 Emergency Repairs
As stated in Section 1.1.7, “Emergency Repairs, All Warranty Types,” emergency warranty repairs may be necessary at a time or
place where the customer is unable to have repairs performed by an authorized Volkswagen Dealer, and has no other recourse
but to have them performed by an independent / non-franchise repair shop.
•
•

An example would be when a vehicle has broken down, and the local authorized Volkswagen Dealer is closed (i.e.
Saturday / Sunday).
It is the responsibility of Dealership Management to determine if the service qualifies for reimbursement. If Management
is uncertain, the Warranty Field Manager should be contacted.

Handling Procedures
The Customer must:
•

Present the original repair invoice, a list of replaced part(s), and a statement of the circumstances of the emergency
repairs to an authorized Volkswagen Dealer for review.

The Dealership must:
•
•
•
•
•
•

Determine if vehicle was within warranty limits at the time of repair, parts were defective in material or workmanship, and
documentation is complete.
Determine amount of reimbursement based on repair invoice (full reimbursement for repair and / or replacement of
defective parts).
Reimburse customer by cheque if the repairs performed are determined to be warrantable.
Submit claim for sublet repair by entering dollar amount for parts and labour in the "Outside" fields in SAGA.
Enter "Emergency Repair" in the “Claim Comments” section of the claim including detailed on the circumstances of the
emergency repair.
If non-genuine Volkswagen parts are used, contact your Warranty Field Manager for authorization prior to reimbursing the
owner.

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12.7.2 Accidents, Fire Damages, Safety Concerns
VGCA warranties cover defects in material or workmanship. In instances where it is determined by VGCA that a fire or accident
was caused by a defect in material or workmanship while the vehicle is still covered under the New Vehicle Limited Warranty,
then the expense to repair or replace the vehicle is also covered by the warranty.
Dealership Procedures
Because special experience and skills may be required to determine whether fire or accident damage is attributable to a defect
covered by warranty or is related to external causes, the Volkswagen Customer Care Centre (1-800-822-8987) should be
contacted immediately with the following information:
•
•
•
•
•
•

Customer name, address and telephone number
VIN and current km
Extent of fire or accident damage
Personal injury and / or property damage (if known)
Location where vehicle may be inspected
Availability of police / fire department report(s) including digital pictures

Notification Procedures
After receipt of such notice, VGCA will determine whether or not an inspection of the vehicle by a Field Engineer or FOM is
required. If VGCA determines that the damage is not related to a defect in material or workmanship, VGCA will notify the
customer accordingly.
Customer Procedures
Regardless of whether or not the damage will be covered by warranty, the owner should be advised to contact his or her
insurance carrier and report the loss without delay.
If the customer reports the fire or accident to the VGCA Customer Care Centre before contacting the dealership, the
following procedure applies:
•
•
•
•
•

If the owner contacts the Volkswagen Customer Care Centre to report a fire, accident damage or physical injury that may
possibly be attributable to a defect in a Volkswagen vehicle covered by warranty, the Customer Advocate obtains the
bulleted information stated above.
The Volkswagen Customer Advocate will assign a contact number and notify the Product Liaison Department of the
incident via a detailed Vehicle Fire / Accident Report.
Product Liaison determines whether or not an inspection of the vehicle by a Field Engineer or FOM is required.
Product Liaison may contact the FOM to schedule inspection of the vehicle.
If it is determined that Volkswagen has no liability in the matter, Product Liaison will notify the Customer Care Centre who
will inform the owner of our position and close the file.

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12.7.3 Code 89 Part Orders for Downed Vehicles (Daily Warranty Orders)
The Daily Warranty or Code 89 Order can be used to order parts for a downed vehicle and put the customer in a loaner car. Our
goal is to reduce car-down situations, expedite repairs and improve customer satisfaction.
Basic Criteria
•
•

Vehicles that can still be driven safely or vehicles outside of warranty are excluded from this warranty order type
Use of this program is subject to audit by Volkswagen Canada and any misuse may result in a dealer’s privileges being
revoked

Eligible Orders
This order type may only be used in cases where a car is still covered under any warranty from Volkswagen and the vehicle is
down. The following terms apply to all code 89 orders (“Daily Warranty” orders):
•
•
•
•
•
•
•
•

It’s crucial to use Daily Warranty whenever a dealer needs to order parts to repair any warrantable car-down situation
Orders submitted as Daily Warranty are placed in Parts on Command as order type (ZDO) using carrier code 89
These Daily Warranty orders are processed with the same priority as “regular Daily” orders with overnight delivery
Items referred from the U.S. for this order type are shipped “Next Day Air” direct to the dealer
Daily Warranty orders are not used in the calculation of a dealer’s Stock Order utilization bonus
Daily Warranty orders are shown in a separate column in the statistical analysis report
The cut-off time for Daily Warranty orders is 3:00 p.m.(PDC local)
Please note that the cut-off time for “regular Daily” orders remains 5:00 p.m. (PDC local) in Canada

Input of Orders
•
•

From Parts on Command, a Dealer will need to input Daily order type (ZDO) with carrier code “89” (Warr. Frt. Ppd.) for
these orders
For each material number, the “comment” field must contain the 17 digit VIN #, repair order number, vehicle mileage, and
RO date

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13 Warranty Audits
13.1 Notification Procedures
VGCA representatives retain the right to audit all records and all supporting documentation relating to the service and repair of
Volkswagen vehicles by the dealership. If claims cannot be substantiated or the documentation is not in compliance with the
requirements outlined in the current Volkswagen Warranty Policies and Procedures Manual edition at the time of repair, claims (or
portions of claims) may be denied or charged back.
Notification Procedures
Prior to a Warranty Audit, the Warranty Field Manager (WFM) will notify the dealership's management by e-mail that VGCA
intends to conduct a Warranty Audit. The dealership will also be provided with a form to select one (1) of two (2) warranty audit
process types (See Section 13.2, “Selection Procedures”). Typically, notification is given at least 2 weeks prior to the start of the
audit. All Warranty parts held in Parts Retention must be kept until the WFM authorizes the Parts Department to resume their part
scrapping process. (Exception: parts requested by the WPRC must be processed and not held for inspection. Parts with a core
value may not be returned until the WFM authorizes the Parts Department to resume their normal process.)

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13.2 Selection Procedures
Dealerships being considered for audit will receive a selection between two Warranty Audit procedures:
•
•

The “Targeted Audit”, or
The Generalized Audit Program (GAP)

The audit methodology to be used will be a choice left entirely at the discretion of the dealer. The decision will be made formal on
a “Warranty Audit Methodology Selection Form” (See below – Selection Process). VGCA is giving a selection to dealers in order
to better serve the dealer network, to encourage dealer involvement in the audit process, and to maintain a positive relationship
between dealers and VGCA warranty.
Selection Process
The following are procedural steps for dealers to follow upon receiving notification of a Warranty Audit:
•
•
•
•
•

Included within the e-mail from your Warranty Field Manager (WFM) pertaining to the intent to conduct a Warranty Audit,
there will be a Warranty Audit Methodology Selection Form to be filled out, signed, and returned via e-mail back to the
WFM.
The completed form must be signed by the Dealer Principal, General Manager, or other respective equivalent.
The completed form must be received by the WFM within 5 days of receiving Warranty Audit notification.
Failure to have the form completed / signed or failure to submit the form within the time frame will result in the loss of the
opportunity to choose an audit method. It will be selected at the discretion of the WFM.
Once the completed form is received, dealers will be sent a confirmation e-mail. This selection is binding.

The printable Warranty Audit Methodology Selection Form can be found on ServiceNet under VGCA Warranty > Forms >
Audit Methodology Selection Form (March 2010).

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13.3 Warranty Audit Choices
13.3.1 Targeted Audit Method
In the Targeted Audit Method, the warranty claim data stored by the dealership will be analyzed prior to the actual audit BUT only
after the dealer has been notified of intent to conduct an audit. This “pre-audit” analysis allows VGCA to target specific areas
identified to be of potential concern.
Files and Documentation Subject to Audit
Typically, VGCA will review over 50 VIN files spread over a period of 12 months of warranty claim activity.
The time period reviewed may be expanded to include additional, related information from preceding year(s) warranty claim
activity. This may occur while pending audit results / findings.
Adjusted Amounts
Net adjusted amounts / chargebacks reflect the value of Warranty Claim errors and / or Policies and Procedures
contraventions as discovered and noted during the audit process.

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13.3.2 Generalized Audit Program (GAP)
The GAP is a factored, extrapolation-based audit program developed to be a quicker, transparent, efficient, and less invasive
method of performing an in-dealership Warranty Audit.
Files and Documentation Subject to Audit
Claims will be selected from the dealership documentation. Claims subject to audit will have been made between the start and
end dates for the 12-month period under review.
A list of randomly selected claims will be generated. This list will consist of a minimum of 60 individual claims in order to gather
a statistically valid amount of data to be evaluated by the GAP. The GAP also provides a list of claims which are “linked” or
generally related to those chosen for examination.
The dealer has the option to accept or reject the first claim list. If the dealer choses to reject the first list, a second randomlygenerated list is to be used unconditionally.
Adjusted Amounts
Warranty Claim errors and / or Policies and Procedures contraventions as well as other financial adjustments resulting from the
review will be entered into the GAP. If:
•
•

The dollar value of errors is > 1% of the dollar value examined; extrapolation is used to arrive at a total audit adjustment
amount.
The dollar value of errors is < 1% of the dollar value examined; extrapolation will NOT be used. However, the actual
amount of adjustments (value of errors) made will be charged back.

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13.4 Certified Pre-Owned Sales and Services Process Audits
As part of VGCA’s ongoing efforts to assist dealers with their warranty-related programs, the Warranty group will begin conducting
review of dealership processes as it regards the certification, sale, and repair of Volkswagen Certified Pre-Owned (CPO) vehicles.
Like other warranty audits, this process will be performed by your Warranty Field Manager (WFM) and will be incorporated to the
previously established in-dealership Warranty Audit program. Although the new facet of the audit process will be undertaken
during the course of a regularly scheduled Warranty Audit, the review will be completed and presented as a separate document /
review.
The audit will consist of an examination of both sales- and service-related documents pertaining to the certification inspection,
retail sale, and after sales repair(s) performed under the CPO Warranty Program.

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13.5 Warranty Audits, Additional Information
Who Performs Warranty Audits?
Warranty audits are performed by an authorized representative of VGCA. Typically it will be coordinated by your Warranty Field
Manager (WFM).
Parts Retention
Please refer to the exceptions listed in Section 8.2.2, “Handling, Retention, and Storage of Parts.”
Warranty Self Review Tool Kit
To use Warranty Self Review Tool Kit, log onto ServiceNet and it will be found under VGCA Warranty > Job Aids and Quick
Reference Claim Coding.
Also, there is Volkswagen Academy web-based training that can help you with your processes:
7S0422 Continuous Improvement: Service and Warranty Management

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14 Appendices
14.1 Damage Codes
The 11-digit Damage Code is composed of the following information:

Main Group

Illustration Number

Damage Category

Vendor Code

Repair/Replace Indicator

(Ex.) 57

63

15

YAK

2

(Ex.) Body, Doors Front

Inner Door Seal

Cracked

Vendor Code

1 = Repaired
2 = Replaced

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14.2 Damage Category Codes with Descriptions
Code

Short Description

10

Mechanical Defect

11

Incorrectly Adjusted

14

Incorrect Standard
Equipment
Out Of Round, Out Of
Balance
Burnt, Slipping

15

Broken, Cracked, Torn

16

Ineffective

17

Binding

18

Loose

20

Noisy