Mac Haik really screwed me over
Clearly states, less than 12 months, less than 12k miles = new engine, nor remanufactured...
Issue Date: Warranty Administrator for Dealers Jan 15, 2011, Posted On: 1/15/2011
Ford targets use of new assemblies when rebuilt parts will do
Ford is making a concerted effort to ensure that dealership shops use remanufactured engine and transmissions for warranty repairs on vehicles that are beyond the standard 12/12 warranty.
Starting February 1, Ford's warranty claims assessors will be on the look-out for claims submitted with a new engine (gas or diesel) or transmission (manual or automatic) assembly on vehicles older than 12/12 (12 months/12,000 miles.)
As a reminder, in Ford's Repair vs. Replacement policy found in the Warranty & Policy manual, Section 3, page 123, states:
"Ford remanufactured engine assemblies, when available, must be used in all New Vehicle Limited Warranty, Field Service Action (recalls), and ESP repairs when the repair vs. replace decision provided by the Cost Cap Tool is to replace the assembly. EXCEPTION: For a vehicle within the first 12 months / 12,000 miles (whichever occurs first) of the New Vehicle Limited Warranty period, dealers may replace an assembly with a new assembly if the estimated repair cost is above the cost of replacement using a new assembly."
If an assessor finds a new assembly on a warranty repair beyond 12/12, the assessor will ask for verification from you (the dealership) that a rebuilt assembly was not available. If verification is not provided, the assessor will adjust the parts total to match the remanufactured assembly cost or handling allowance. Actually, following Ford's assessors' past history, they will probably adjust the claim first and force the dealership appeal the decision later.
This means that it is up to your parts department to adequately support the "unavailability" of a remanufactured assembly. Ford assessors will insist that you have available the documentation that verifies your FAD did not have a remanufactured assembly available at the time of the repair. Your parts department is also required to contact at least one additional FAD when the facing FAD does not have the assembly and retain proof this proof as well.
There are two occasions when a new unit might be used even when a remanufactured one was available. The first is at the explicit instructions of the Technical Hotline. The assessor will look the in Technical Hotline record, if you make a note of it in the comments, but do yourself a favor and like the FAD unavailability documents, have the technician save the Technical Hotline case narrative as well.
The second reason is because the customer is screaming bloody murder about Ford wanting to replace their nice, well maintained engine assembly with some rebuilt one with indeterminate mileage and history.
While it is somewhat understandable, Ford does have the right to make repairs at their discretion. Normally, if a customer's engine or transmission is so far gone as to require an assembly replacement, you can make the case that it is gone and your rebuilding it is no different than the Ford remanufactured assembly. Actually it is slightly better because Ford will strip out and replace a lot more parts than you will be allowed to.
If the customer still insists on a new unit, you may do so but the difference in price would either be paid for by the customer (good luck with that) or out of your CLP allowance. In either case, submit the claim with the new assembly part number and cost but put the difference in customer or dealer participation as the case might be. If you want to use CLP funds to cover the extra cost, submit the CLP repair as a refund.
