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 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 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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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.

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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"). HAZMAT
part requests are identified by red highlighting in the WPSP. 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 3.37 Parts –
Damaged Parts)

2.5.2

WARRANTY PARTS RETENTION, STORAGE AND CLAIM FOLLOW-UP AT THE
DEALERSHIP

2.5.2.1

WARRANTY PARTS STORAGE
All parts must have a part's tag attached to the part(s) during storage identifying the repair order
number and date of repair. These items must be stored in a secure area within the dealership,
accessible only by authorized personnel. Stored warranty parts must be organized for easy retrieval
when parts are requested for submission to the WPRC or requested for inspection by Volkswagen.
A 10-bin system is required for parts storage and retention, using the last digits of the repair order for
filing. Volkswagen representatives must have access to the workshop tools and testing equipment for
parts' inspection and function testing.

2.5.2.2

WARRANTY PARTS RETENTION
All warranty part(s) must be retained at the dealership until they appear on the weekly Parts
Destruction/Core Disposition Report (unless notified of a pending audit).
EXCEPTIONS:
 Carefree Maintenance claim parts: Parts replaced under Carefree Maintenance such as engine
oil, washer fluid, and oil filters, are considered consumable parts and can be disposed of
immediately.
 Transportation claim parts: See policy Salvage Parts in section 4.1 New Vehicle Receipt
 Parts retention period for warranty audits: If a warranty audit is scheduled, the dealership must
retain all warranty parts, including parts for paid claims and parts listed on the Part Destruction
and Core Disposition Report from the date the dealership management is advised of the
scheduled audit until the Warranty Field Manager informs the dealership management to scrap all
retained warranty parts*. Any part(s) requested by the WPRC must always be shipped to the
WPRC immediately and not be retained by the dealership.
– *To the extent that an applicable state statute requires a shorter parts' retention period,
the state law applies

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WARRANTY PARTS CLAIM FOLLOW-UP
If a claim is cancelled because a part was not received at the WPRC, supporting documentation was
not supplied, or after part evaluation, the dealer has 14 calendar days to respond to the claim
cancellation. If the claim cancellation is "Confirmed", the dealer has 7 calendar days from the date of
the audit trail displaying the claim debit to request the part be returned.
Effective June 1, 2010, Volkswagen will process the "acceptance" of "cancelled" SAGA claims that
remain in the Dealership’s Process/Confirm tab for over 14 calendar days. These claims will transfer
from the Dealership’s Process/Confirm tab to the Cancelled tab in SAGA and will appear as a debit on
the next audit trail following the transfer. Cancelled claims are not eligible for resubmission without
prior approval obtained from the Warranty Parts Return Center (WPRC). Use the email functionality
available through the WPSP to request the claim submission approval.
When a warranty part with a core value is requested by the WPRC through the Warranty Parts
Shipping Portal (WPSP), dealers will be reimbursed the core value through the weekly audit trail once
the part is received and validated. The WPRC will automatically return all denied parts with core
values to the dealer, however, the dealer may be charged for the shipping costs incurred for returning
the part to the dealership via FedEx third party billing.

2.5.3

DOCUMENTATION FOR PARTS REQUESTED BY THE WARRANTY PARTS
RETURN CENTER
The WPRC must receive the following required documentation with all requested parts, when
applicable. This information is required to meet government reporting and supplier recovery
requirements. Any claim received without the required documentation may be denied warranty
payment.
WARRANTY PARTS RETURN DOCUMENT
The Warranty Parts Return Document generated from the WPSP must be attached to the requested
part(s). The Warranty Parts Return Document may be more than one page and all pages should be
printed and attached to the requested part.
REPAIR ORDER
A copy of the Repair Order with technician notes, punch times and any additional documents to
support the warranty claim must be attached to the requested part(s).
VOLKSWAGEN-APPROVED DIAGNOSTIC TOOLS PRINTOUT
If there is a MIL illuminated or a Volkswagen-approved diagnostic tool is used for diagnosis, the
printout must accompany the requested part(s).
 Model year 2003 and earlier requires a copy of the self diagnostic printout.
 Model year 2004 and later requires a copy of the GFF/GF diagnostic printout.

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The requirement to include a printed copy of the GFF/GF diagnosis log with the part
shipped to the WPRC is based on availability of the log in the GFF Paperless application.
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If the Dealer has confirmed that the GFF/GF diagnosis log displaying the fault codes
associated with the requested warranty part is available in the GFF Paperless
application, it is no longer necessary to include a printed copy of the GFF/GF
diagnosis log when returning warranty parts.
If the GFF/GF diagnosis log is not available in the GFF Paperless application, a
complete printed GFF/GF diagnosis log displaying fault codes must be returned with

the requested warranty part.
It is critical that the Dealer ensure that the appropriate GFF/GF log(s) appear in the GFF
Paperless application before a decision is made to send warranty parts to the WPRC
without attaching a paper copy of the GFF/GF diagnostic log(s).

When a Volkswagen-approved diagnostic tool is used, the diagnosis log printout is required with the
requested part after completing:
 The guided fault finding
 A printout of the diagnosis log from the GFF/GF prior to completing the GFF/GF
 A printout of the diagnosis log when the previous log is erased
 NOTE: If a printer is inoperative, state this in the claim comments. Include the printer repair
documentation when available, and include precise handwritten fault codes.
DIAGNOSTIC WORKSHEETS
For parts requested on repairs where a diagnostic worksheet is required, the worksheet must be
submitted along with the requested part. These include, but are not limited to: