Warranty Information
General Communication

Number: VWC-14-02

Subject: Open Enrollment for Option 1 – Consumer Price Index
(CPI) - Based Warranty Labor Rate Increase
(US Dealers)

Date: March 18, 2014
This document conveys
Volkswagen Warranty general
information.

The open enrollment period for Volkswagen’s Consumer Price Index (CPI) - based warranty
labor rate increase option is March 15th through April 30th.
This option represents the most widely-used and accepted industry standard for Dealer warranty labor
rate increases.
Benefits to Selecting the CPI-Based (Option 1) Warranty Labor Rate Increase Method
1.
2.
3.
4.

Easy one-form, one-signature, 3-year enrollment
No Labor Rate Survey Form (Market Survey) required
No repair order paperwork or analysis required
Labor rate increases occur automatically every June 1

Other Important Details
Volkswagen’s CPI-based (Option 1) Warranty labor rate increase option will provide a 1.1%
increase for all enrolled Dealers in 2014.
The CPI-based option is available to all Dealers regardless of the date of your last increase.
 If a Dealer received an Option 2 increase within the last 12 months, the first year’s Option 1
increase will be prorated based on the number of months since the Dealer’s last increase.
 For Dealers currently enrolled in Option 1 nothing is required at this time.
 Dealers whose 3-year enrollment expires in 2014 must re-enroll to receive the 1.1% increase.
In the last week of May, all Dealers enrolled in Option 1 will receive a letter from Volkswagen notifying
you of your new warranty labor rate that will become effective June 1, 2014.
For complete details and enrollment instructions refer to Section 2.4.2.2 of the Warranty Policies and
Procedures Manual. The required enrollment form is attached to this communication for your
convenience and is also located on
WISE > Resource Center > Forms > Labor Rate > Option 1 – Consumer Price Index (CPI) Based Warranty Labor Rate Increase Enrollment Form

Questions: Contact Volkswagen’s Warranty Labor Rate Specialist at 248-754-6577 or
warrantylaborrate@vw.com
Page 1 of 1 (plus attachment)
© 2014 Volkswagen Group of America, Inc.
All rights reserved. Information contained in this document is based on the latest information available at the time of printing and is subject to the copyright and other
intellectual property rights of Volkswagen Group of America, Inc., its affiliated companies and its licensors. All rights are reserved to make changes at any time without
notice. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, nor may these materials be modified or reposted to other sites, without the prior expressed written permission of the publisher.

Volkswagen of America, Inc.
Option 1 - Consumer Price Index (CPI) – Based Warranty Labor Rate Increase
Enrollment Form

Date: ______________________________ Dealer Number: ______________________________
Dealer Name: ____________________________________________________________________
Address: ________________________________________________________________________
Current Volkswagen reimbursement rate per hour: _______________________________________
Effective date of current reimbursement rate: ___________________________________________


Open enrollment occurs each year from March 15th through April 30th.



A Dealer may enroll in Option 1 (CPI - based labor rate increase) by completing and submitting this
enrollment form to the Warranty Process and Labor Rate Specialist no later than April 30.



This option is a 3-year enrollment commitment which provides an automatic warranty labor rate increase
based on the change in the U.S. Consumer Price Index for the previous 12-month period ending in
February. The official CPI will be determined from the U.S. Government web site
www.bls.gov (CPI-U)



The amount of the annual CPI Increase will be capped at 4%. The annual increase amount will be rounded
to the nearest $0.10. If the CPI change is negative, the Dealer’s current warranty labor rate will not
decrease but will remain in effect for the next year.



The applicable warranty labor rate increase (0 – 4%) takes effect on June 1 of each year of the 3-year
enrollment period.



Once enrolled, the Dealer cannot apply under Option 2 (Effective Retail/Market Rate) until the 3-year
enrollment period ends.



When the 3-year enrollment period ends the Dealer must re-enroll to continue in the CPI option.



If a Dealer received an Option 2 (Effective Retail/Market Rate) increase within the last 12 months, the first
year’s Option 1 increase will be prorated based on the number of months since the Dealer’s last increase.

By signing this enrollment form, I agree to the above terms.
Dealer Principal Printed Name

Dealer Principal Signature

Date

Please fax completed form to 248-754-4663 or scan and email to warrantylaborrate@vw.com.

For Corporate Use:

Approved rate: _________________ Effective June 1, _______
Approved by: __________________ Date: ________________

Volkswagen of America, Inc.

3/11

Page 1 of 1