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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.

Dealerships may use labor operations published on ElsaWeb 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.

3.

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.

5.
6.

Fill in other columns with
− Repair orders in numerical sequence
− 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. 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.
2. 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
Geographical Area, please leave the line blank and indicate “not in area”.
3. Total the "warranty labor rates" and divide by the number of surveyed dealerships to
determine the "average market warranty labor rate".
4. Total the "retail labor rates" and divide by the number of surveyed dealerships to determine
the "average market retail labor rate".

 Request for Reimbursement of Warranty Labor at Retail Rate
Note: Applicable only in States where law requires reimbursement of warranty labor at retail rate.
1.

2.

3.

Enter the following labor rates in the correct lines and their effective dates:
− "Effective retail labor rate" (from the Repair Order Analysis)
− "Average market warranty labor rate" (from Market Labor Rate Survey)
− "Average market retail labor rate" (from Market Labor Rate Survey)
− "Current Volkswagen warranty labor rate"
− “Requested Volkswagen warranty labor rate"
In case the dealership disclosed its retail labor rate to any governmental agency or entity,
such as the State Division of Motor Vehicles, a copy of the document disclosing such rate
must be attached to the Dealer Request for Warranty Labor Rate Increase form.
The Dealer Principal/General Manager must sign and date the form.

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Establishing a Warranty Labor Rate for New Dealerships
 Opening a New Dealership
The Volkswagen Warranty Labor Rate Specialist will complete a new dealership labor rate
evaluation and deliver the rate to the Field Representative for presentation to the Dealer.
Factors taken into consideration when establishing the warranty labor rate for a new dealership
include, but are not limited to, the labor rates of existing authorized Volkswagen Dealers and
competitive makes in proximity of the new dealership as well as prevailing market conditions.
A Warranty Labor Rate Increase request may be submitted for review once the guidelines under
Option 1 or Option 2 are met.
 Taking Over an Existing Dealership
The new dealership will assume the warranty labor rate of the outgoing dealership. When able to
comply with the conditions in section Changing the Warranty Labor Rate the dealership may
submit a request for a labor rate increase.

Establishing a Warranty Labor Rate for New Owners of an Existing Dealership
 New dealerships will assume the warranty labor rate of the previous dealership. If the outgoing
dealership is currently enrolled in the Option 1 program, the new dealership can continue for the
remainder of the three-year agreement. If the new dealership requests to be removed from the
Option 1 program, they must indicate this in writing within 30 days. The new dealership will be
eligible to apply for a warranty labor rate increase once a full 12 month period has passed since
the last increase.

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REIMBURSEMENT OF 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. Examples include, but are not limited to welding,
painting, repairing defective seat covers and/or installing convertible tops. 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 VWoA's Parts Program is required. A part
not offered in the VWoA Parts Program is one that is obtained from an outside vendor that meets all
Volkswagen standards of quality and safety.
REIMBURSEMENT
It is the dealer's responsibility to determine the most economical method of sublet repair meeting
Volkswagen's quality and safety standards. Reimbursement for sublet labor repairs will be made at
dealer cost only without any additional markup. The labor charge must not exceed the ElsaWeb SRT
multiplied by the dealer's warranty labor rate in effect on the date of the sublet repair.
The following are the reimbursable amounts on the sublet invoice:
 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.
 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.
All copies of sublet invoices must be filed with and attached to the warranty repair order.

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2.5

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WARRANTY PARTS RETURN CENTER REQUIREMENTS
This section of the manual describes the policy requirements applicable to the Warranty Parts Return
Center (WPRC).

2.5.1

WARRANTY PARTS SHIPMENT
It is the dealer's responsibility to ensure that requested warranty parts are shipped to the WPRC at the
appropriate time, using the Warranty Parts Shipping Portal (WPSP). Parts should be shipped within
the "order date" and "expiry date" for the shipment displayed in the WPSP.
Warranty will not reimburse any shipping costs incurred by dealers.

2.5.1.1

SHIPPING ADDRESS
The shipping address for requested warranty parts will automatically be populated on the shipping
label generated from the WPSP.
PARTS NOT AVAILABLE FOR SHIPMENT
For requested warranty parts that are not available for shipment to the WPRC, such as a part that has
been lost on the highway or a part that was not installed during production, the following procedure
applies:
 For parts not available for shipment by the dealer or for parts that have already been picked up by
an authorized Volkswagen Factory Representative or VWoA employee, DO NOT PRINT THE
FREE SHIPPING LABEL AVAILABLE FROM THE WPSP. Use the email link for the requested
part in the WPSP to notify the WPRC of the situation and to provide an explanation of why the part
was not available to ship.

2.5.1.2

SHIPPING COSTS

2.5.1.2.1

FREE SHIPPING FOR REQUESTED WARRANTY PARTS PROGRAM
Effective February 1, 2009, the cost to ship requested warranty parts to the WPRC is paid by
Volkswagen. As of February 14, 2011, free FedEx return shipping labels are provided through the
WPSP for all requested warranty parts. For additional information, refer to the WPRC document
entitled Warranty Parts Return Center User's Guide available on WISE under Resource Center >
Dealer Processes & Guides > Warranty Parts Return Center (WPRC).

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PARTICIPATION IN THE FREE SHIPPING FOR REQUESTED WARRANTY PARTS PROGRAM [NEW DEALER SETUP]
Inclusion in the Free Shipping for Requested Warranty Parts Program through the Warranty Parts
Shipping Portal (WPSP) requires that new Dealers:
1. Have a separate FedEx account established. To initiate the process of establishing a
separate FedEx account, dealers must contact the Warranty Parts Return Center at
2.
3.

vwoawprc@vw.com.
Complete U.S. Department of Transportation (DOT) Hazardous Material Training.
Fax or email the WPRC the following documents which are required to become a FedEx
qualified Hazardous Material Shipper (for the return of HAZMAT requested parts).
a. Completed FedEx OP910
b. Current DOT Hazardous Materials Training Certificate
Note: The above FedEx forms can be obtained through Volkswagen Warranty by calling 1866-306-8447 or by emailing warranty.helpline@vw.com.

2.5.1.2.2

HAZARDOUS MATERIALS (HAZMAT) SHIPPING INSTRUCTIONS
 This policy is applicable to United States dealers in the 48 contiguous states only.
HAZARDOUS MATERIALS (HAZMAT) PART RETURN PROCESS
A hazardous material (HAZMAT) is a material that, in any quantity, poses a threat to life, health or
property. Some automotive parts contain such materials (referred to as "HAZMAT parts"). As a result,
HAZMAT parts will not be requested through the SAGA warranty system and will not receive a SAGA
barcode. HAZMAT part requests will be made available directly in the WPSP, identified by red
highlighting. Dealers who have their FedEx account certified by FedEx as a qualified Hazardous
Material Shipper will be able to retrieve the shipping label from the WPSP. Dealers who are not
qualified Hazardous Material Shippers will not be able to retrieve the label from the WPSP.
Effective July 1, 2010, Volkswagen will, when necessary, dispatch a third party vendor to pack and
ship any requested HAZMAT warranty parts from those dealers whose FedEx account is not identified
as a qualified Hazardous Material Shipper.
− A handling fee of $450 per part will be charged to the dealer's parts account for this
service.
− If the requested HAZMAT part is not available when the representative from the third
party vendor arrives at the dealership, the associated warranty claim will also be debited.

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EXAMPLES OF HAZMAT PARTS THAT REQUIRE HAZMAT-CERTIFIED PERSONNEL FOR SHIPMENT
A generic list of common automotive-related HAZMAT parts or categories of parts is provided below
for reference. HAZMAT parts include, but are not limited to, these items. Always refer to the most
current government regulations to determine if a part is considered HAZMAT.
USA: United States Department of Transportation’s (DOT’s)
Hazardous Materials Regulations (HMR) (49 CFR)
















Air bag modules
Air bags, side airbags, or any other airbag inflators that have not been deployed
Batteries (primarily lithium and acid-filled, even if drained)
Dampers (hood, trunk or lift-gate struts, steering dampers)
Filters, oil or fuel (used)
Fire extinguishers
Fuel injectors
Fuel or oil samples
Fuel pumps
Fuel tanks (after they have been used)
Magnetic speakers
Pressurized pneumatic parts
Seat belt pre-tensioners
Shocks
Struts

No person, individual, or company may offer or accept a hazardous material for transportation in
commerce, unless the shipment complies with Hazardous Materials Regulations, including training
requirements.
DISPOSAL OF HAZMAT PARTS NOT REQUESTED BY THE WPRC
It is the dealer's responsibility to properly handle and dispose of hazardous parts/materials not
specifically requested by the WPRC. All such handling and disposal of hazardous waste should be
done in accordance with the dealers' local and state laws, as well as all federal laws and regulations
relative to hazardous waste.
2.5.1.3

PARTS DAMAGED DURING HANDLING, SHIPPING, OR STORAGE
All parts are to be shipped in the same condition as they were when the vehicle came to the
dealership for repair. Parts damaged due to improper repair, handling, or improper packaging for
shipment will not be reimbursed. Parts damaged due to accidents, shipping, and handling are not
warranty matters.
If a discrepancy claim arises from shipping loss or damage once the package is handed over to FedEx
(in conjunction with the Free Shipping for Requested Warranty Parts Program), Volkswagen will
handle the discrepancy claim arising from the shipping loss or damage. However, if the loss or
damage is the result of improper packaging by the dealership, the WPRC will work with the dealer

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involved to resolve the issue. For proper packaging of warranty requested parts, see section 2.5.4
Packing Parts Requested by the Warranty Parts Return Center.
Parts damaged during storage or where individual components are missing from the original container
are not warranty matters. These claims should be referred to the facing PDC. (Also see 3.40 Parts –
Damaged Parts)

2.5.2