Volkswagen Warranty Policies and Procedures – April 2014 1 Foreword This document regulates handling and processing of warranty liabilities between authorized Volkswagen dealers and Volkswagen Group Canada Inc. It is part of the Dealer Agreement Standard Provisions, and should be used as a reference guide for Warranty Administrators and Service Managers in their daily decision-making. Any and all rights and obligations of Volkswagen and its authorized dealers are subject to any applicable provincial or federal law or regulation. From time to time Warranty Policy and Procedures Bulletins will be published to modify or add to existing warranty policies or procedures. These policies may not immediately be incorporated into the published version of this manual. The policies described in the Warranty Policy and Procedures Bulletins will be incorporated into the next scheduled revision of this manual. Always check the current Warranty Policy and Procedures Bulletins for additional and important information. All currency listed in this manual will be in Canadian dollars unless otherwise specified. Volkswgen Group Canada, Inc. 2 Warranty Policies and Procedures Commonly-Used Terms and Their Acronyms Better Business Bureau BBB Canadian Motor Vehicle Arbitration Plan CAMVAP Canada Border Services Agency CBSA Certified pre-owned (formerly “Certified Pre-Owned”) CPO Volkswagen product owner Customer/Owner Dangerous Goods (a.k.a. Hazardous Materials, or HAZMAT) HAZMAT/DG Authorized Volkswagen Dealer or Authorized Service Centre Dealer, Dealership Electronic Control Module ECM Electronic Service Information System (Repair Manuals, Wiring Diagrams, Technical Bulletins, etc.) ElsaWeb Environmental Protection Act EPA Electronic Repair Order ERO Fixed Operations Manager FOM Guided Fault Finding GFF Hazardous Material(s), or Dangerous Goods HAZMAT/DG Inspection and Maintenance I/M New Vehicle Limited Warranty NVLW Minimum Allowed Thickness MAT Malfunction Indicator Lamp MIL Motor Vehicle Manufacturing Association MVMA Model Year MY On Board Diagnostic, or On Board Diagnostic II OBD, OBD-II Parts Distribution Centre PDC Pre-Delivery Inspection PDI Powertrain Control Module PCM Repair Order RO ServiceNet (additional repair, warranty, campaign and special tool information not found in ElsaWeb) ServiceNet Suggested Repair Time(s) SRT Subject to Inspection STI Technical Quality Manager TQM Transmission Control Module TCM Volkswagen Hub www.vwhub.com Volkswagen Inventory Management VIM Vehicle Certification Administration System VCAS Vehicle Identification Number VIN Volkswagen Group Canada Inc. Volkswagen or VGCA Warranty Field Specialist WFS Warranty Parts Return Centre WPRC Volkswgen Group Canada, Inc. 3 Warranty Policies and Procedures 1 All Warranty Types 1.1 Important Warranty Information for All Warranty Types 1.1.1 Warranty Coverage and Guidelines, All Warranty Types There are several types of warranties for Volkswagen vehicles. These are: • New Vehicle Limited Warranty (NVLW) • Powertrain Limited Warranty • Corrosion Perforation Limited Warranty • Federal Emissions Warranty • Parts and Accessories Limited Warranty • Limited Warranty Extensions for specific components • Hybrid System Limited Warranty The following terms apply to all of these warranties unless otherwise noted within their specific policies. Warranty Obligation Damages to the vehicle may be caused by the way its components are composed or processed during manufacturing. These types of damages are the manufacturer's responsibility and are eligible for warranty reimbursement. The Volkswagen warranties cover the repair of the defect(s) or replacement of the defective part(s) as described in each warranty’s policy. If a part or number of parts is required to be replaced, either new or remanufactured genuine Volkswagen parts may be installed per policy. Supplements or changes to policies may be contained in current Warranty Policy and Procedure Bulletins. Always check the current Warranty Policy and Procedures Bulletins for additional and important information. Start of Warranty Period The warranty period begins with the date of delivery to the original purchaser or the original lessee (including original fleet purchases), which is the “in-service date,” or the date the vehicle is first placed in service as a demonstrator or company vehicle, whichever comes first. If not stated otherwise the warranties are applicable for the original purchaser / lessee and subsequent owners. End of Warranty Period The warranty period ends at the earliest one of these two events (i.e. whichever occurs first): • When the vehicle reaches the specific warranty’s exact stated mileage limit (e.g. for the 4 year/80,000 km NVLW, the warranty ends at precisely 80,000 km—not 80,001 km), or, • On midnight of the day before the given ‘anniversary’ of the in-service date (e.g. for the 4 year/80,000 km NVLW, if the vehicle’s in-service date is 1 December 2009, the warranty ends at midnight, on 30 November 2013—not 1 December 2013) Repair orders must be opened prior to the end of the warranty period in order to be eligible for warranty reimbursement. Free-of-charge Repair Repairs described under these warranties are free of charge unless otherwise noted (e.g. battery proration). Basic Terms These warranties are issued by Volkswagen Group Canada Inc. (VGCA) and DO NOT apply to Volkswagen vehicles or parts and accessories not imported or distributed by VGCA. The New Vehicle Limited Warranty, the Corrosion Perforation Limited Warranty, the Powertrain Limited Warranty, the Emissions Warranties and the Hybrid System Limited Warranty are the only express warranties made in connection with the sale of a Volkswagen. Any implied warranty, including any warranty of merchantability or warranty of fitness for a particular purpose, is Volkswgen Group Canada, Inc. 4 Warranty Policies and Procedures limited in duration to the stated periods of these written warranties. Some provinces do not allow limitations on how long an implied warranty lasts, so, the above limitation may not apply to the owner. VGCA reserves the right to make improvements or change the design of any Volkswagen model at anytime with no obligation to make similar changes on vehicles previously sold. Neither Volkswagen nor the manufacturer assumes, or authorizes any person to assume, any other obligation or liability on its behalf. Where to go for warranty service Only authorized Volkswagen dealers may perform warranty work. They must ensure that covered repairs/replacements for all eligible Volkswagen customers are performed free of charge and in compliance with these guidelines. An exception may be made in the case of an emergency repair. Please refer to Section 1.1.7, “Emergency Repairs, All Warranty Types.” Normal Wear and Tear All mechanical parts of an automobile are subject to wear. Therefore, repair(s) or replacement(s) of most parts due to normal wear are the customer's responsibility, and are NOT eligible for warranty reimbursement. However, some components ARE covered for wear and tear. Please refer to Section 1.3.3 “New Vehicle Limited Warranty (NVLW), Components Covered for Wear and Tear” for coverage of these components. Use of Volkswagen Genuine Parts New or remanufactured Genuine Volkswagen parts are required to be used for all repairs performed under VGCA warranty. VGCA will not reimburse the cost of non-genuine parts used for warranty repairs except when the warranty work is eligible for sublet to an independent repair facility and the required parts are not in the Volkswagen parts program. For more information on proper parts use, please refer to Section 8.1.1, “Parts, Genuine.” Engine oil requirement for all Volkswagen vehicles When performing any warranty repairs, repairs for campaigns, and maintenance repairs during scheduled CPO Inspections requiring oil changes or additions, technicians are required to use Castrol brand engine oil. For specifications on acceptable oil types, please refer to Section 2.16.1, “Engine Oil Quality Standards for All Volkswagen Vehicles” of this Manual. Data quality of warranty claims Dealers must ensure a high quality of warranty data by submitting claims that are correct, complete, and on time. Correct claim types, causal parts, part manufacturer codes, and damage codes, along with short claim submission times enable Volkswagen to identify quality improvement potential without delay. Diagnostic Methodology, from MY 2004 For MY 2004 and newer models, either Guided Fault Finding (GFF) or Guided Functions (GF) must be utilized for diagnosis of warranty repairs or replacements, unless otherwise instructed in Volkswagen publications including, but not limited to Technical Bulletins, UPDATE Bulletins, Warranty Policy and Procedures Bulletins, and Campaign Circulars. In some cases, the procedures in these documents may specifically instruct the technician to use Vehicle Self Diagnosis (VSD). Please refer to Section 6.5.4.4, “Diagnosis Time” for more instructions on methods for diagnosis. With the paperless GFF process, diagnostic logs can be uploaded daily. Refer to ServiceNet for the latest information. Repairs Required While Travelling Out of Country Canadian customers who require warranty repairs while travelling in the United States should have repairs performed by an authorized Volkswagen dealer. If the vehicle is covered by a Volkswagen Group Canada Inc. warranty, United States dealers can submit a warranty claim. As of MY 2009, proof of Canadian residency is required. If a United States dealer cannot