Managers' Handbook, Claim Section for details.
 Volkswagen Boutique or gift items (such as watches, pens, shirts, sweaters, remote control toys,
etc.) are not warranty matters to be processed via the SAGA system, and must be handled by the
supplier. Some exceptions such as remote control toys, pens, etc. that are ordered and invoiced
through your Facing PDC can be processed through your Facing PDC. When in doubt, contact
your Facing PDC.
 Special tools are not considered a warranty matter. Please direct inquiries to Equipment Solutions
by calling 800-892-9650.
CLAIMS FOR PARTS FOUND TO BE DEFECTIVE
Sold over-the-counter parts that are determined to be defective from the manufacturer should be
submitted as a 131 claim type in the SAGA system. Example: Parts that are blemished or headlights
where the electrically welded seam prematurely fails causing the lens to break away from the housing.
Dealer installed parts that subsequently fail should be submitted through the SAGA system as a 110
claim type if the vehicle is within the NVLW or 121 claim type if the vehicle is outside the NVLW
period.

3.38

PARTS – GENUINE PARTS
GENUINE VOLKSWAGEN PARTS FOR WARRANTY REPAIRS
Genuine Volkswagen parts are new or factory remanufactured replacement parts, accessories, and
optional equipment for use in the service or repair of Volkswagen vehicles if such parts, accessories
and optional equipment are supplied by and purchased from VWoA.
Genuine Volkswagen parts are required to be used for all repairs done at Volkswagen's expense and
pursuant to Volkswagen's warranties covering the vehicle and Volkswagen's warranties covering
replacement parts, accessories and optional equipment supplied by and purchased from VWoA.
Non-genuine parts may be used for warranty repairs only if the warranty work is eligible for sublet to
an independent repair facility and the required parts are not in the Volkswagen parts program.

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Except as noted above, VWoA will not reimburse the cost of non-genuine parts used for Volkswagen
warranty repairs.
DISCLOSURE
In the event that non-genuine parts are used for warranty repairs, disclosure must be made to the
customer that Volkswagen's Limited Warranty for New Vehicles and Volkswagen's Limited Warranty
for Parts and Accessories do not apply to the parts installed as part of the warranty repair. This could
be accomplished by the use of a stamp or a handwritten notation on the customer's repair order, such
as: "Non-genuine parts not warranted by VWoA" or "Non-genuine parts and labor warranted by
Dealer for __________ months or ___________ miles. Required parts are not in the Volkswagen of
America, Inc. parts program. The Volkswagen Dealer Agreement provides that dealers will use their
best efforts to promote the sale of Genuine Volkswagen Parts.
VOLKSWAGEN DEALER AGREEMENT
The Volkswagen Dealer Agreement provides that dealers may not sell any parts which are not
equivalent in quality and design to genuine Volkswagen parts if the parts are necessary to the
mechanical operation of Volkswagen automobiles.
The Volkswagen Dealer Agreement also provides that Volkswagen dealers will not represent to their
customer as genuine Volkswagen parts any parts which are not new or factory remanufactured
genuine Volkswagen parts.
To the extent that Volkswagen owners have the expectation that genuine Volkswagen parts have been
used in the repair of their automobile and non-genuine parts have in fact been used, the Volkswagen
Dealer Agreement provides that the customer be advised of that fact.
REMANUFACTURED PARTS USE
The use of new or factory remanufactured parts for warranty repairs is mandatory. Dealers must use
factory remanufactured parts within 6 months after introduction of the remanufactured part by the
VWoA Parts Division.
NEW PARTS
Repairs performed on vehicles prior to being placed in-service must be completed utilizing new parts.
Remanufactured parts may not be used on such vehicles.
 New parts can be special ordered as needed.
 The comments section of the warranty claim must indicate the use of a new part, i.e. new vehicle
in stock - replaced with new part number.

3.39

PARTS – ORDERING
DAILY ORDERS
When a warranty repair cannot be scheduled or completed because a needed part is not in dealer
inventory, the part must be ordered as expeditiously as possible.

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Page 134

If parts for warranty repairs are not in Dealer inventory and the vehicle is inoperative or not safe to
drive or a delay in repairs will bring the vehicle outside the warranty limit, the following parts ordering
"roadmap" must be implemented by the dealer parts department.

Customer
needs a part

Do you have the part in
stock?

Y
Sell part to customer

N

Does your primary
PDC have the part?

Y

Is it critical to get the part
soon?

N

Y

Place a daily or
emergency
order

N

Do area dealerships
have the part?

Y

Go get
the part

Include part
in weekly
order

N

Is the part found in the
National Referral
Program?

Y

Is it critical to get the part
soon?

Y

Place an
emergency
order

N

N

Is it critical to get the
part soon?

Y

Place a
RED
order

Place a daily
or weekly
order

N
Leave part on
backorder

DOCUMENTATION OF DAILY ORDERS
To support warranty claims involving repairs on back order (extension of warranty time limits, loaner
vehicle charges, or use of new parts in lieu of remanufactured parts) a number of documents must be
retained and made available upon request.
 Local Special Order form (if used)
 Packing slip
 Any document supporting back order

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 Print of Screen supplying sales documentation number
Parts needed for warranty repairs which are available from any PDC and are ordered via daily order
will be shipped freight prepaid.
RED ORDERS
A Red Order (Requested Express Delivery), is the highest priority of all orders. A RED order is
processed immediately from the fastest source available and shipped direct to the ordering dealer.
Typically this order is used when a dealership has a "Car Down" situation and a stock check indicates
no stock is available. RED orders are especially important if Volkswagen is paying for a daily rental.
Red Orders can be placed in Parts On Command to the dealer's primary PDC. Before placing a RED
order, it is recommended to check for any stock of the part with other dealerships in the area via Parts
Voice. In cases where the PDC cancels a Red Order due to the fact that a part in transit would arrive
quicker than if the part was placed on Red Order, supporting documentation such as a screen print
substantiating the RED Order cancellation will serve as acceptable documentation if the situation
qualifies for a daily rental.

3.40

PARTS – REPLACE-ONLY COMPONENTS
If replaced under any Volkswagen warranty the components listed in table Replace-Only Components
must be replaced rather than repaired. After warranty expiration, repairs to these components may be
performed at the customer's discretion.
 Note: Deployed airbags must never be repaired but replaced with a new replacement airbag that
has the same specifications as the originally installed airbag. Volkswagen will not accept liability
for consequential damage resulting from repaired airbags.
REPLACE-ONLY COMPONENTS
A/C Compressor

Clutch Master Cylinder

Air Bags

Clutch Slave Cylinder

Alternator

Diesel Injection Pump

Brake Caliper

ECM/TCM

Brake Drum

Flywheel

Brake Master Cylinder

Power Steering Pumps

Brake Wheel Cylinder

Power Steering Rack

Certain Instrument Clusters

Starter Motor
Turbo

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Page 136

Genuine VWoA remanufactured parts must always be used when available*. Machining of parts (i.e.
cylinder heads) is not allowed under warranty unless instructed to do so by Product Support.
*When the term “available” is used in regards to remanufactured parts, it means that a remanufactured part exists and
may be ordered. When a remanufactured part is not “available”, it does not mean that a remanufactured part is not in
stock at the Dealership or Parts Distribution Center.

3.41

PICK-UP AND DELIVERY SERVICE FOR TOUAREG
Effective as of repair date January 1, 2013, Touareg Pick-up and Delivery Service benefits are
available to MY 2011 - 2015 Touareg owners while their vehicle is within 3 years or 36,000 miles,
whichever occurs first, of the vehicle's original in-service date. In order to provide a personalized,
premium ownership experience, Touareg Pick-up and Delivery Service for customer vehicles should
be considered any time a Touareg appointment is scheduled for a repair or maintenance service
(including customer-pay) at a Volkswagen Dealership.
Dealer Reimbursement Rates for Touareg Pick-up and Delivery Service for a Customer Vehicle
The maximum amount claimable for Touareg Pick-up and Delivery Service for a customer vehicle is
$20 per repair visit.
 Pick-up $10
 Delivery $10

3.42

PRODUCTIVITY – REPAIR SHOP
Measuring productivity is a method of determining how available time is being utilized in the Service
Department repair shop. Low productivity means that “Time Control” is lacking and, therefore, may
result in unnecessary losses in parts and labor sales. A well-prepared Service Manager/Service
Director utilizing the time control process outlined here has a better opportunity to continuously
monitor and increase the Service Department’s productivity. A good benchmark for productivity is
between 90% and 95%.
To accurately calculate your shop’s productivity, all technicians must punch “on” at the start of the day
and punch “off” when finished with work for the day. The same process of punching “on” and “off”
applies prior to and after any W-Times (coffee and lunch breaks, performing shop repairs, training or
idle time, etc.), and must also be punched in the required areas on the Daily Time & Payroll Record.
This time is called “Daily Available Time” (time available for work). ERO Dealers can use the same
productivity guidelines noted above.
Productivity is measured by taking the total clocked time for a given time period (a week, 2 weeks, a
month, quarterly, etc.) and dividing the total clocked time by the total available technician time during

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the same time period multiplied by 100. Shop Productivity can never surpass 100%, but the higher the
percentage, the more “Daily Available Time” is being sold for services and repairs, resulting in a more
profitable Service Department.
(Total Clocked Time of R.O. ÷ Total Available Time) x 100 = Productivity %
SUGGESTED REPAIR TIMES (SRT)
The Suggested Repair Times (SRT’s) in ElsaPro and/or Technical Bulletins are the basis for warranty
labor reimbursement.
 Reimbursement of labor for all warranty repairs is based on an approved warranty labor rate.
 Warranty labor reimbursement is based on the dealers approved warranty labor rate in effect on
the claimed date of the repair.
 All time clocks used for warranty repairs must be in hundredths of an hour.

3.43

RADIO/CD CHANGER
For radio/CD changer replacement guidelines see 3.7 Audio.

3.44

REPAIR VERSUS REPLACE
If the parts and/or labor required for a repair exceed 80% of the replacement cost of the unit, a
complete new or remanufactured unit should be installed, unless written Volkswagen policy states
otherwise. It is the Dealer's responsibility to determine the most economical method of repair in order
to control warranty costs.
For "repair versus replace" requirements for transmissions see section 3.61 Transmission Repair vs.
Replacement.

3.45

REPAIRS COMPLETED AT OR NEAR WARRANTY EXPIRATION
If a warranty repair is started while a vehicle is in warranty and completed when the warranty has
expired, the repair date at the start of the repair is acceptable for warranty claim submission even if the
vehicle has left the workshop. If the vehicle is still within warranty, use the last punch date of repair on
the R.O. Failure to use the last punch date may result in charge-back unless the vehicle falls out of
warranty, as described above.

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3.46

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Page 138

REPURCHASED (REACQUIRED) VEHICLES
Volkswagen attaches a disclosure sticker on the inside of the windshield on all vehicles which have
been returned by the owner to Volkswagen. This sticker may not be removed prior to the time that the
vehicle is sold and delivered to any retail purchaser.

MANUFACTURER REACQUIRED VEHICLE DISCLOSURE STICKER EXAMPLE
MANUFACTURER
REACQUIRED VEHICLE
REACQUIRED IN THE STATE OF:
SPECIAL WARRANTY
This vehicle was reacquired by the Manufacturer.
It is covered by a special 12 month/12,000 mile limited warranty
provided by Volkswagen Group of America, Inc. (VWGoA)
Coverage begins upon retail sale. The Reacquired Vehicle Disclosure Statement,
which must be included in the vehicle paperwork, provides additional information.
This warranty may run concurrent with any original warranty provided by VWGoA.
(Refer to the warranty booklet for information about any warranties in effect for this vehicle.)
•

VWGoA requires a signed Reacquired Vehicle Disclosure Statement upon retail sale in all states.

•

Individual state laws may also mandate certain disclosure procedures. Dealers are responsible for
complying with any applicable requirements.

•

This label is provided in addition to any other disclosure documents that may be required by any
applicable law.

Warranty claims are submitted according to the Warranty Policies and Procedures manual and must
include the "E" number from the Reacquired Vehicle Disclosure Statement (RVDS) in the Comments
section of the claim. If the vehicle is no longer covered by its original warranty, use claim type 210 and
enter 0% in the “labour”, “material”,” outside labour” and “outside material” fields in SAGA.
In the event a claim must be authorized, please contact your FOM/QTM. If a customer presents an
RVDS that does not contain an "E" number, please contact Volkswagen Customer CARE.

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Page 139

REPEAT REPAIRS/SHOP COMEBACKS
Warranty claims will be charged-back if repeat repairs/shop comebacks are due to technicians
performing improper repairs.

3.48

ROAD TEST LABOR OPERATIONS
The following claim processing guidelines apply for road test labor operations.
LABOR OPERATION 01210002 – ROAD TEST – TU: SEE ELSAPRO
 May be utilized when customer complaint has been verified and vehicle components will be
replaced or repaired.
LABOR OPERATION 01210004 – ROAD TEST – TU: SEE ELSAPRO