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Manufacturer's Warranty: Our Obligations and Expectations |
.. Larrie York, May 2/03 |
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1. General Observations
“Warranty” means different things to different people and companies. For this purpose we are going to use the meaning as it is typically used by an engine manufacturer. That is, the manufacturer of the product agrees to rectify any defects in labour or materials that occur within a specified period of time (hours or months, whichever comes first).
All manufacturers provide a written warranty statement. The statement sets out their obligations and their limitations under the warranty.
2. The Manufacturer/Customer
The manufacturer has every right to expect good value and fairness from us when we are performing warranty work. We are spending their money. Usually, there is a “repair or replace” option. This means that the manufacturer has the right to replace or repair any item or assembly - at their option – whichever provides the most economical solution. Sometimes customers think that they have the right to determine whether items will be replaced and they will demand a new part or assembly. This is not how it works.
Much as we may sympathize with the customer and want to keep him “happy”, we are spending somebody else's money and they determine how it will be spent.
3. Warranty Provider not Warranty Decider
The manufacturer authorizes Frontier or an approved dealer to provide warranty parts and services. Usually the circumstances are clear in advance of the work being performed. However, there are occasions where we are called upon to provide “warranty” where the manufacturer does not agree that the problem is a result of defective parts or labour. In these cases Frontier does not provide warranty. We did not manufacture the failed part or assembly and we do not warrant others' goods. The customer must pay for the repairs. We may choose to appeal to the manufacturer for “policy” or we may even supplement the costs ourselves in some instances but we do not determine what is or is not covered by warranty.
If in doubt, find out before the costs have begun to mount.
4. Limitations
All warranties have limitations. Typical, common sense limitations include, travel and mileage allowances, no consequential damages allowable, gaining access and diagnostic time limitations, “flat rates” and so on. Failures attributed to neglect or abuse are always excluded. “Neglect” is a frequent cause of warranty complaints especially in cooling and oil system problems.
5. Warranty Work Orders – What's Different?
We need to be aware of the “sensitive” aspect of a warranty work order. The customer may expect that all of the work will be covered by the manufacturer's warranty. Sometimes this is the case. Sometimes the manufacturer will only cover a portion of the total and occasionally, no coverage at all is made available. The time to explore this is long before the work is undertaken, let alone completed. We may need to contact the manufacturer to explain the circumstances before we proceed with the repairs.
Whenever a fault is related to lube oil or coolant, generous samples must be taken. If there is any question about this, take samples, in clean containers, label them and store them until the job is complete and the claim is settled.
Save all components that are relevant to the failure. These can be disposed of only after the claim process is complete.
Take pictures. Nothing puts the manufacturer in touch better than good pictures and records.
Make certain we have all the information required to complete a warranty claim.
Process the job and the paperwork promptly. Manufacturers want to know if they have problems with units in the field. As well, John Deere has a strict, 30 days, time limitation for warranty completion.
6. “Warranty” versus “Policy”
Circumstances sometimes arise that do not really fit the exact warranty definitions. In order to be fair to the customer a claim may be submitted or some compensation offered by Frontier to offset these special conditions. An example might be an engine with an obvious defect that has very low hours and is a few days or weeks past its warranty period. We might elect to ask the manufacturer to review the claim and offer some compensation or share in the costs of repair. This is “policy” and it is solely at the discretion of the manufacturer or, in some cases, at the discretion of Frontier. We should never assume that the manufacturer will participate. They must be contacted in advance.
7. Fuel Injection, D.C. Electrics & Turbochargers
There may be exceptions and special cases in warranties for components manufactured by others.
Fuel injection warranties are now linked with EPA requirements. Most fuel injection work must be performed by an authorized service provider, named by the injection equipment manufacturer. We are not authorized, without prior approval, to replace fuel injection equipment nor can we repair it in-house. Deere has arrangements with Bosch and Stanadyne that are intended to provide prompt repairs or the failed component can be replaced with a new part.
There are probably more problems with warranty on fuel injection equipment than on any other area of the engine.
The manufacturers differ in their coverage of electrics and turbochargers. Check the written statements.
8. The Best Advice
Communicate before you commit. Frontier has processed countless warranty claims over the years. We have people who have a very good idea of what needs to be done and how to do it. As well, the manufacturer has someone we can contact if there is any doubt as to how we should proceed.
Once you say to a customer “That should be covered by warranty.” it is too late to go back and reassess the situation. Similarly, if you give an outside party a purchase order, you cannot, after the repairs are completed, renege on your promise to pay.
For the most part, warranty claims are straightforward. Frontier has a generally good reputation for being honest and professional in our dealings with customers and with manufacturers. Although we do not look to warranty billings to make money we usually do end up earning a modest profit on warranties from the manufacturers we represent.
Keep good records. Take samples. Keep the parts for inspection. Take pictures. Remember that we are spending others' money and they deserve good value. Most of all , communicate before you commit.