Ford Motor Vehicle Assurance Company Warranty and Policy Manual EDITION: October 2003 Form No. FCS-7755 Warranty & Policy Manual Table of Contents Introduction Page Number Section 1 – Dealership Administration • Responsibility Overview 1-1 • Dealer & Service Supervision Responsibilities 1-7 • Warranty Record Responsibilities 1-10 • Warranty Parts Retention & Return Procedures & Responsibilities 1-17 • Service Technician Specialty Training Standards — ACES II Edits 1-25 • Sublet Invoice Requirements 1-28 Section 2 – Carrier Drop-Off through Delivery to Customer • Carrier Drop-Off Inspection 2-1 • In-Transit Damage/Loss and Damage Repairs 2-12 • Misbuilt/Misinvoiced Vehicles 2-20 • Storage of New Vehicles 2-23 • Pre-delivery/Delivery to Customer 2-25 Section 3 – Warranty Coverages • Coverage Summary/Introduction 3-1 • Ford, Lincoln, Mercury, and TH!NK Car & Light Truck Coverage 3-7 • 600 & Higher Series Truck Coverage 3-53 • Federal Emissions Coverage 3-81 • California Emissions Coverage 3-85 • Battery Coverage 3-93 • Service Part Warranty Coverage 3-109 • Warranty Cancellation - Branded Title 3-127 • Service Contracts (ESP Plans, Superseal, etc.) 3-130 • Ford Remanufactured Parts Coverage/Usage Requirements 3-139 • Governmental Coverage Regulations & Legal Procedures (lemon law, RAV, taxes) 3-141 Section 4 – Recalls, Dealer Self-Approval Guidelines, & After-Warranty Assistance • Safety, Compliance and Emissions Recalls 4-1 • Dealer Self-Approval Guidelines 4-6 • After-Warranty Assistance 4-10 October 2003 Ford Motor Company – Ford Motor Vehicle Assurance Company Table of Contents Section 5 – Reimbursement Policies Page Number • Labor Reimbursement Policies 5-1 • Parts Reimbursement Policies 5-8 • Chargebacks & Appeal Procedures 5-15 • Miscellaneous Policies 5-18 Section 6 – Ford Programs • Powertrain Exchanges 6-1 • Lifetime Service Guarantee Program 6-3 • Customer Satisfaction Programs 6-6 • Roadside Assistance Program 6-11 • Transportation Assistance Program 6-14 • Quality Certified Used Vehicle Program 6-16 Section 7 – Basic Claim Preparation (ACES II Special Claims Preparation - See ACES II Manual) • Repair Shop Work Order Responsibilities 7-1 • Basic Claim Preparation 7-3 • Alternative Forms — Required Entry Fields 7-14 Section 8 – Warranty Performance Measurement • Warranty Measurement System and Controls Programs 8-1 • Warranty Expense Formula 8-3 • Warranty Controls Program 8-4 • Warranty Category Self-Review Program 8-4 • Warranty Counseling Process 8-5 Section 9 – Glossary, Resources, Forms, and Publications • Glossary - List of terms, definitions, and acronyms 9-1 • Resources: VIN Breakdown, Phone #’s, Converting Miles to Kilometers 9-4 • OASIS 9-17 • VIN Coding Charts 9-19 • Forms & Publications (Ordering Procedures and Form Examples) 9-29 Index Table of Contents Ford Motor Company – Ford Motor Vehicle Assurance Company October 2003 WARRANTY AND POLICY MANUAL ORDERING INSTRUCTIONS The Warranty & Policy Manual is available to all dealers on-line through the “FMCDealer.com” website under the “SERVICE” heading under the subheading WARRANTY.” If you would like to purchase a printed copy of the manual or other warranty publications, you can do so on-line through the FMCDealer.com website or by calling Archway Publica- tions at 734-713-3446. ORDERING ON-LINE After logging into FMCDealer.com: • Click on Dealer eStore. • Under Department in the “Search by category” section, select “Service.” • Under Topic, select “Warranty and Policy.” • Click on “Search for Matching Items.” • Scroll through the selections until you reach the Warranty & Policy Manual. • Click on “View Next Items” as needed to continue scrolling on the next page. • Enter the quantity you would like to purchase in the “Enter Order Quantity Field.” • Click on “Add to Shopping Cart.” This will take you to the “Your Shopping Cart” screen. • Click on “Check Out.” • Verify your order and shipping method, then click on “Place Order.” • The appropriate amount will be charged to your Parts Account. Note: For assistance click “Help.” ONLINE NAVIGATION INFORMATION When viewing the Warranty & Policy Manual using Adobe Acrobat, press Control and 7 at the same time OR go to “View” and select “Bookmarks and Page.” This will reveal an outline of the Section which is currently being viewed. Clicking on any of the entries will take you to the indicated section. Any entry with a triangle to the left of it has subheadings, clicking on the triangle will reveal the subheadings, which can also be clicked on to take you directly to the indicated section. October 2003 WARRANTY & POLICY MANUAL – CHANGE SUGGESTION Dealer, If you have suggestions for improvements or notice any errors in the publication, please help us by letting us know where changes are necessary. You may fax this form to 313-845-4338, or mail it to: FORD CUSTOMER SERVICE DIVISION WARRANTY ADMINISTRATION Dealer Name: REGENT COURT BUILDING Dealer P&A Code: 16800 EXECUTIVE PLAZA DRIVE MAIL DROP 3NE-1D Phone Number: DEARBORN, MI 48126 Name: Section and Page where change is requested: Description of Requested Changes ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ October 2003 INTRODUCTION The purpose of the Warranty and Policy Manual is to assist dealers in providing owners of Ford Motor Company vehicles the warranty service to which they are entitled. This Manual serves as a supplement to and an extension of the Sales and Service Agreement and the warranty statements. No policy or procedure contained in the Warranty and Policy Manual is intended to be inconsistent with, or contrary to the Sales and Service Agreement or state law. The Manual is essential to a dealership because it contains the information all employees need to provide warranty and policy services fairly and uniformly. It provides detailed information about the responsibilities of the Company, the dealers, and vehicle owners in regard to all warranty and policy coverages. This introductory section explains how to use the Manual and presents the terminology needed to understand it. This Manual generally addresses warranty and policy requirements/repairs; however, the conditions and requirements outlined apply to all types of repair claims submitted to the Company for reimbursement, including ESP/ESC claims and in-transit loss and damage claims unless specifically noted otherwise. The Company has been designated as the administrator for the American Road Insurance Company for new Extended Service Contracts (ESC). Ford Motor Company or Ford Motor Vehicle Assurance Company (a subsidiary of Ford Motor Company) provides the New Vehicle Limited Warranty. The warranty is a written statement of the warranty provider’s responsibility for the repair or replacement of defective parts. This warranty is a legal obligation that must be fulfilled. Where Ford Motor Vehicle Assurance Company (FMVA) provides the warranty, it uses Ford Motor Company as its agent and administrator. When this Manual refers to Ford Motor Company, the Company or Ford, it is also referring to Ford Motor Company acting as agent and administrator for FMVA. Where Ford Motor Vehicle Assurance Company provides the New Vehicle Limited Warranty, dealers should not be representing that warranty as a “manufacturer’s warranty.” Policy programs are developed to pay for certain repairs not covered by the warranties. While these are not legal obligations, dealers are responsible for performing these repairs. Policy programs include: Customer Satisfaction, After-Warranty Assistance and Recalls. Applying the provisions of this Manual will help us to satisfy new vehicle owners and protect the good name of Ford Motor Company and your dealership by providing quality warranty and policy service. These practices will help all of us as partners to accomplish our goal of having the best satisfied vehicle owners in the world. How to Use This Manual This Manual is divided into nine sections, some of which are further divided into sub-sections. These sections and sub-sections are listed and described in the Table of Contents. The detailed Index appearing in the back of the Manual is cross-referenced and will direct you to the information in the Manual. New and revised information contained in this Manual is identified by a vertical line on the outside