VOLVO CAR

SERVICE AND PARTS BUSINESS

Service Manager Bulletin
TITLE:

Warranty Retailer Counseling Process (WRCP) Policy Document
GROUP:

NO:

ISSUING DEPARTMENT:

CAR MARKET:

00

288

Warranty and Audit

United States and Canada

REFERENCE BULLETINS:

Superseded SMB 00-288 October 3, 2016
Service Personnel:
Read and initial

SERVICE
MANAGER

SERVICE
WRITER

ISSUE DATE:

STATUS DATE:

2017-06-07

2017-06-07

WARRANTY
ADMINISTRATOR

Page 1 of 6
“Right first time in Time”

Since January 2002, Volvo’s Warranty Department has been tracking Retailer’s warranty spending
by utilizing the Warranty Retailer Counseling Process (WRCP). The Warranty Retailer Counseling
Process (WRCP) is used to gauge individual retailer performance on objective measures over time. By
setting clear performance expectations and parameters and assisting retailers in focusing on individual
processes and procedures, all retailers are provided with adequate tools to help achieve the ultimate goal
of qualifying for self-authorization status.
There are many factors that may contribute to a warranty index being high. Some factors may be beyond
the retailer’s control and we do not intend to discourage necessary and appropriate repairs. However,
when an index is high, many times there are factors that retailer personnel can influence.
Entry into the Warranty Retailer Counseling Process (WRCP) is based on statistical variances using
the size of the Retailer and their percentage of warranty costs above the market average. Retailers can
find their Warranty Index on their monthly Warranty Performance Report. This report is designed to be
used as a tool for both Volvo as well as retailers as an aid in monitoring individual retailer efficiency
regarding warranty performance. The monthly Operation Number Exception Report is also a tool
designed to inform the retailer where they may be significantly over represented on specific op codes.
Retailer Groups:
X-Small Retailers
United States:
Canada:

0 -100*
0 – 75*

Produced in the USA and available as an electronic document. Hard copy documents are printed in USA on recycled paper containing
a minimum of 50% wastepaper and 10% post-consumer waste.
© 2017 VOLVO CAR USA, LLC

Service Manager Bulletin 00-288
Small Retailers
United States:
Canada:

101 – 200*
76 – 150*

Medium Retailers
United States:
Canada:

201- 350*
151- 450*

Large Retailers
United States:
Canada:

351-500*
451- 700*

X-Large Retailers
United States:
Canada:

501 - *
701 -*

* The number of cars serviced (warranty) over a rolling three month period.
Action Points for US & Canadian Retailers
X- Small Retailers
US: 0-100* cars serviced
Canada: 0-75* cars serviced
Level 0) Warranty indexes above normal but below 40% (No action)
Level 1) Normal 2 of 3 months, no months above 40% (self-authorization for a 3 month period)
Level 2) 2 of 3 months above 40% (letter of self analysis)
Level 3) 2 of 3 months above 40% (on-site or remote Audit and any Goodwill self-authorization
privileges suspended)
Level 4) 2 of 3 months above 40% (TMA parts return)
Level 5) 2 of 3 months above 40% (on-site comprehensive Audit)
Level 6) 2 of 3 months above 40% (actions to be determined)
Small Retailers
US: 101- 200* cars serviced
Canada: 76- 150* cars serviced
Level 0) Warranty indexes above normal but below 25% (No action)
Level 1) Normal 2 of 3 months, no months above 25% (self-authorization for a 3 month period)
Level 2) 2 of 3 months above 25% (letter of self analysis)
Level 3) 2 of 3 months above 25% (on-site or remote Audit & any Goodwill self-authorization privileges
suspended)
Level 4) 2 of 3 months above 25% (TMA parts return)
Level 5) 2 of 3 months above 25% (on-site comprehensive Audit)
Level 6) 2 of 3 months above 25% (actions to be determined)
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2017-06-07

Service Manager Bulletin 00-288
Medium Retailers
US: 201- 350* cars serviced
Canada: 151- 450* cars serviced
Level 0) Warranty indexes above normal but below 10% (No action)
Level 1) Normal 2 of 3 months, no months above 10% (self-authorization for a 3 month period)
Level 2) 2 of 3 months above 10% (letter of self analysis)
Level 3) 2 of 3 months above 10% (on-site or remote Audit & any Goodwill self-authorization privileges
suspended)
Level 4) 2 of 3 months above 10% (TMA parts return)
Level 5) 2 of 3 months above 10% (on-site comprehensive Audit)
Level 6) 2 of 3 months above 10% (actions to be determined)
Large Retailers
US: 351-500* cars serviced
Canada: 451-700* cars serviced
Level 0) Warranty indexes above normal but below 7% (No action)
Level 1) Normal 2 of 3 months, no months above 7% (self-authorization for a 3 month period)
Level 2) 2 of 3 months above 7% (letter of self analysis)
Level 3) 2 of 3 months above 7% (on-site or remote Audit & any Goodwill self-authorization privileges
suspended)
Level 4) 2 of 3 months above 7% (TMA parts return)
Level 5) 2 of 3 months above 7% (on-site comprehensive Audit)
Level 6) 2 of 3 months above 7% (actions to be determined)
Mega Retailers
US: 501 and higher* cars serviced
Canada: 701 and higher* cars serviced
evel 0) Warranty indexes above normal but below 5% (No action)
Level 1) Normal 2 of 3 months, no months above 5% (self-authorization for a 3 month period)
Level 2) 2 of 3 months above 5% (letter of self analysis)
Level 3) 2 of 3 months above 5% (on-site or remote Audit & any Goodwill self-authorization privileges
suspended)
Level 4) 2 of 3 months above 5% (TMA parts return)
Level 5) 2 of 3 months above 5% (on-site comprehensive Audit)
Level 6) 2 of 3 months above 5% (actions to be determined)
* The number of cars serviced (warranty) over a rolling three month period.
A three month process improvement period is standard before movement to the next level is
considered.
All results are reviewed quarterly for revalidation.

2017-06-07

Page 3 of 6

Service Manager Bulletin 00-288
Definition and Requirements for each Level
Level 0 – No Action
If a retailer’s warranty index is above “normal” but below the target percentage (40%, 25%, 10%, 7% or
5% based on the size of the dealer) then no action by the retailer is required.
Note: Normal equals at or below market area average.
Level 1 – Self- Authorization
If a Retailer maintains a Warranty Index of “normal” for 2 of 3 months and is also below the target
percentage (40%, 25%, 10%, 7% or 5%), they will become self-authorizing for a three-month period.
•

Retailers will receive a letter notifying them of their self-authorizing eligibility

Note: Retailers that re-qualify for self-authorization privileges will receive a letter from the Warranty
Department congratulating them on their continued positive performance and they should continue
authorizing their claims for another 3 month period.
Note: All self-authorized warranty claims are subject to verification of data, parts testing results and
audit requirements. Evidence of misuse of self-authorization may result in immediate termination of
the ability to self authorize, elimination of future eligibility, and the potential debiting of any and or all
claims self-authorized during the eligible period.
Level 2 - Retailer Self Review Process
If a Retailer’s warranty index is above the target percentage (40%, 25%, 10%. 7% or 5%) for 2 of 3
months, they will enter the counseling process (WRCP).
•
•
•

•

Retailers will receive a letter advising them that they have entered the counseling process.
Each retailer will be provided with a self review packet that will include all the information
applicable to entry in Level 2
A list of claims identified by the Warranty Department as possibly out of line, which may be
contributing to their high warranty cost, will be provided. Volvo requires that the Volvo Service
Manager performs the self review and completes the Action Plan for submission to Volvo.
The self review packet and an Action Plan must be completed and returned to Volvo by the deadline
indicated in the notification letter.

Level 3 – Dealer Audit (Updated*)
If a Retailer’s warranty index remains above the target percentage (40%, 25%, 10%. 7% or 5%) for 2
of 3 months after a Level 2 – Self Review has been completed, they will advance to Level 3 – Dealer
Audit.
•
•

Retailers will receive a letter advising them that they have advanced to Level 3 – Dealer Audit.
Retailers will be advised if the audit will be conducted on–site at the retail facility or remotely by the
VCUSA Audit Department. This decision is at Volvo’s discretion.
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2017-06-07

Service Manager Bulletin 00-288
•

•
•
•
•

•

A remote audit will include an internal review of specific claims identified by the Audit Department
as possibly out of line which may be contributing to the retailer’s high warranty cost. Volvo will
provide the retailer with a list of repair orders that must be mailed in for review. Once the Audit
is completed, an Auditor will contact the Service Manager and set up a conference call meeting to
review the findings and provide constructive feedback.
A detailed summary of the findings and any areas for change will be identified and provided to the
retailer and Volvo management for review.
The Auditor will initiate charge-backs for missing repair orders not supplied and any gross
misrepresentation
A detailed action plan approved for submission and signed by the Service Manager will be due
within thirty (30) days of the Dealer Audit being completed.
Retailers that have previously had a Level 3 – Dealer Audit completed, any time after January 1,
2009, that re-enter the process and advance to a Level 3 again will automatically be subject to a
comprehensive Level 5 – Audit.
Retailers who are Level 3 or above within the WRCP will have their goodwill self- authorization
privileges suspended until such time they have achieved a level less than Level 3.

Note: Those retailers that were self-authorizing prior to entry to Level 3 will receive a letter from
the Warranty Department that they have lost their self-authorization privileges. Any Goodwill selfauthorizing privileges will also be suspended.
Level 4 - TMA Parts Return
If a retailer’s warranty index remains above the target percentage (40%, 25%, 10%. 7% or 5%) for 2 of
3 months after a Level 3 – Dealer Audit has been completed, they will advance to Level 4 – TMA Parts
Return.
•
•
•

Retailers will receive a letter advising them that they have advanced to Level 4 – TMA Parts Return.
Specific parts identified by the Warranty Department and TMA will be put on return for a 3 month
period.
Any Goodwill self-authorizing privileges will also be suspended.

Level 5 – Dealer Audit (Updated*)
If a retailer’s warranty index remains above the target percentage (40%, 25%, 10%. 7% or 5%) for 2 of
3 months after a Level 4 – TMA Parts Return has been completed, they will advance to a comprehensive
Level 5 – Dealer Audit.
•
•
•

Retailers will receive a letter advising them that they have advanced to a comprehensive Level 5 –
Dealer Audit and when the Audit will be conducted.
A Volvo Auditor will conduct an on-site Audit, basing the analysis on current performance in relation
to the previous Level 3 – Dealer Audit and Level 4 – TMA Parts Return.
The Volvo Auditor will initiate charge-backs for non-compliant areas found during the Audit.

2017-06-07

Page 5 of 6

Service Manager Bulletin 00-288
•

•

A detailed action plan approved for submission and signed by the Retailer Principal will be due
within thirty (30) days of receiving the Audit Summary Report. This due-date will be specified in the
report.
Any Goodwill self authorizing privileges will also be suspended.

Level 6 – Measures to be Determined
•
•

These actions will be retailer specific based upon the circumstances.
Retailers will be notified of any further actions by Volvo’s Audit Department.

Entering/Exiting Warranty Retailer Counseling Process (Updated*)
•

•
•

•

At the end of the three-month period, a retailer whose costs have been reduced to the accepted level
will be removed from the program for having achieved their targets toward reducing their warranty
costs.
A retailer who returns to out of line conditions within six months after exiting the program would reenter the program escalating to the next higher level.
Those retailers that have had a Level 3- Dealer Audit completed any time after January 1, 2009 that
re-enter the process (at Level 0 or 2) and advance to Level 3 again, will automatically be subject to a
comprehensive Level 5 – Dealer Audit.
Retailers who are Level 3 or above within the WRCP will have their goodwill self- authorization
suspended until such time they have achieved a level less than Level 3.

PLEASE NOTE:
VCUSA may conduct Audits outside the scope of this program at any time.
There may be instances when conditions outside this process warrant immediate action. As a result,
audits, TMA parts returns or any other action deemed necessary may be conducted outside the scope of
this process at VCUSA’ s discretion.

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2017-06-07