SCOOP: Massive win for New York dealers: NY Gov. Kathy Hochul just signed a new law requiring automakers to cover ALL warranty repair costs. Now – automakers must pay dealers based on actual retail labor time. But that's not all... The bill also forces manufacturers to cover diagnostics, and they can't deny warranty claims simply because they're out of parts… What’s more? This law could benefit NY dealers in many ways: 1. Boosting technician employment 2. Better pay for warranty work 3. Reclaiming market share from aftermarket shops The big question is – will other states follow New York’s lead? Read today’s top automotive stories, presented by OPENLANE US: https://lnkd.in/ge9R7NyH (CDG News Exclusive)
John Atashian
1mo
OEM will soon require more documentation to get properly paid on a claim knowing the new documentation will be cumbersome for dealers. OEM will hire more auditors, send them out starting late next year to start to recoup monies paid to dealers. Hold tight, the OEM'S will be coming for your money....
I totally understand the issue, but I’m tired of everyone sitting around and waiting for government to regulate private industry. Our dealership associations need to work through these issues with the manufacturers. Need I remind you that manufacturers knew that seatbelts saved lives, but no one had the integrity to stand up and convince their customers that it was worth a few more dollars to buy a properly equipped vehicle. What did they do instead-they waited until ever was forced to put seatbelts in cars, then jumped on the bandwagon. Start leading and not waiting on government.
David Reunert
1mo
Car Dealership Guy / Yossi J Levi, the comments on this post make me think this could be a great poll question and to conduct a podcast on the topic… That said, regulation like this comes from pressure mounted by both consumers and dealers in NY - it does not come out of thin air. And over the course of the last 9 decades of the automobile business in America, regulation is introduced with the best possible intentions. Legislation like this is the result of business practices the state doesn’t believe are fair. How does anyone justify the ethics of declining of a warranty claim because an OEM’s supplier cannot supply the needed parts? If an OEM directs a retailer’s workshop team down a certain diagnostic path to triage a complicated issue, why should the onus for that rest on the dealer or the customer? It’s a very interesting dialogue for sure - and one that the state of NY has nudged further along.
Todd Puccio
3w
shortsighted the legislation needed to be written as a modifier from the labor times from the manufactures. Not off a 3'rd part labor time guide. Lobbyist for the manufactures pressured the bill to be written like it is. pick any manufacture and look at Alldata time for off the beaten path repair that the dealer tech see each and every day you will not find those jobs in all data. that's why they pressured the bill to be written like it is, so the dealer and tech will just get paid normal low paying warranty time. the heavy line techs are the ones who will win! The guys who do the finesse jobs will not make bank off this bill. those types of jobs are not in alldata! . the manufactures are going to make it incredibly hard to collect each and every tenth over and above base warranty time and you can pretty much bets that the Big three are going to be sending their audit teams out to all of the dealers in NY over the next year trying to gain back all of that "lost" money! it looks good on paper but.......
Geoffrey Pohanka
1mo
there are no free lunches, likely OEMs will simply scale back other dealer programs and there will be no net benefit in the end
Rob Gehring
1mo
This is wonderful news! Every state should follow the example of Illinois and NY. I call on every manufacturer to make this change on retail time immediately to every dealership!
Dennis O'Brien
1mo
Will be made up in cost of VSC
Austin Craddock
1mo
I’m interested to see the wording and how the OEMs interpret the reimbursement process. Other states have implemented similar laws which have in turn created additional processes for dealers to be reimbursed properly.
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