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.
For Option 1, dealerships participate through an enrollment process initiated through the WISE
website.
For Option 2, the 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 Labor Rate Specialist
3800 Hamlin Road
Auburn Hills, MI 48326
The warranty labor rate reimbursement does not relieve dealerships from the obligation to comply with
applicable Federal, State or local laws.

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 percent 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 using the Unadjusted CPI for All Urban Consumers (CPI-U) for the 12 months ended
February.
Guidelines
 A dealership can choose the Option 1 program by submitting an enrollment form through WISE
during the open enrollment period. The open enrollment period begins on or about the 1st working
day following the release of the February CPI figures (generally between March 15 and March 31)
and ends six weeks later. VW Warranty will inform dealers of the open enrollment end date via
normal communication channels.

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 When enrolling under this option, the increase may be prorated based on the number of months
since the dealership’s last increase.
 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, the 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.

OPTION 2 (EFFECTIVE RETAIL/MARKET RATE)
The dealership may make a written request to the Volkswagen Warranty 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
Labor Rate Specialist to the following address:

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Volkswagen of America, Inc.
Attn: Volkswagen Warranty Compliance 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
determine the "average market warranty labor rate".
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.

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"

2.

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.

3.

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 the section, Changing the Warranty Labor Rate, the dealership may
submit a request for a labor rate 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 ElsaPro 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 Portal (WPP). Parts should be shipped within the
"requested date" and "expiration date" for the SAGA ID displayed in the WPP.
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 WPP.

2.5.1.2

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, a part that was not installed during production, or a part that was picked up
by an authorized Volkswagen Factory Representative or VWoA employee, the following procedure