Automakers paying retail for warrantied parts

[rbattelle]

This week's Automotive News has an article about court rulings in Maine and New Jersey that require auto makers to pay the same price as retail customers when reimbursing dealerships for parts.



Sounds good to me! Here's what the spokesman for the Alliance of Automobile Manufacturers had to say about these rulings:

The Maine statute is unfair. It requires that added repair costs be absorbed by the manufacturers.

Well, DUH! That's how a warranty is supposed to work!



Another interesting tidbit from the article: the average markup for retail parts at the dealer is 67%. And people wonder why we call them by the "S" word.



Ryan

 

[Jumbo Jet]

Local Acura dealer just replaced a transmission on my wife's Acura. 69,500 miles on odometer and a 2000 year model. Under warranty. No hassle. No questions asked. NO attempts at voiding warranty. To top it all off, they gave a 3 year, 36,000 mile warranty on the replacement transmission.



Problem was from a defect in manufacturing.



My mother's 1998 Dodge Neon with 41,000 miles on it needed it's SECOND head gasket due to a known manufacturing defect. Dealer wanted $1,200 to replace the head gasket. I called Chrysler Customer Relations. So sorry. Car doesn't have that many miles, but is old was their response.



Maybe if they start paying retail like they ask their customers, they will spend more time in engineering and manufacturing. Of course, they will want to double the price of their autos.

 

[brods]

Bad news. First, the costs will just be passed along to new car buyers. Second, it will give the manufacturer even more incentive to try to not honor warranty repairs. The dealers are the ones who profit by this ruling. What possible benefit does this have for us?