Automatic Labor Rate Increse?

squish · 01-06-2009, 03:36 PM

Wasn't the warranty labor rate increase (that we were supposed to get in october) supposed to take affect on January 1? has anyone heard the status of it or do i have my dates wrong?

squish · 01-06-2009, 03:56 PM

just got word from my dm that it will be postponed indefinetly, expect an email from detroit soon.

CL Pgh · 01-06-2009, 04:13 PM

Welcome aboard!!!

Unfortunately we got the same info. early today (indef. postponed). Dealer & I spoke about this and he's guessing this is going to be on the list of "sacrifices" presented to congress in 90 days.

dodgequality · 01-06-2009, 04:27 PM

Sacrifice is not the right word - it's called a haircut today and get ready for a shave job - soon and often.
It is so hard to stay optimistic. The screw keeps turning down.

XDCX · 01-06-2009, 05:30 PM

Quote:

Originally Posted by squish

just got word from my dm that it will be postponed indefinetly, expect an email from detroit soon.

So this is just your second post on DealershipForum.com and you deliver us more bad news? What's up with that......

Just kidding.

Welcome to the forum and thanks for sharing the information. I doubt that too many people here will be surprised that there's another "take away" from Chrysler - we're kind of getting used to it.

Thanks again for the post and I hope that you'll become a regular contributor.

XDCX · 01-06-2009, 05:33 PM

Quote:

Originally Posted by CL Pgh

Dealer & I spoke about this and he's guessing this is going to be on the list of "sacrifices" presented to congress in 90 days.

That's a scary thought, but it makes sense. Chrysler is going to need to demonstrate that they've received concessions from all parties if they hope to keep the $4 Billion Bridge Loan.

Something tells me that this will not be the last "take away" the dealers have to endure in the next 90 days.

XDCX · 01-06-2009, 05:37 PM

Quote:

Originally Posted by dodgequality

It is so hard to stay optimistic. The screw keeps turning down.

I think that's the worse part - the screw just keeps tightening. It's almost like a death by a thousand paper cuts - I'd rather take a bullet.

That said, I do remain hopeful that something good will happen in the next 90 days.

dafuzz1956 · 01-06-2009, 08:44 PM

Question

How many more take aways can we have? First it was the front end grosses with no more leasing with cfc, now today we are suppose to send customers to their credit union and pay them to do it and now we will get paid less than we should to do warranty work, there really isn't much left out hear in the real world.

squish · 01-21-2009, 03:51 PM

well, it's official. no labor rate increase for one more year. when i originally talked to the dm earlier this month he said since there was been no inflation last year, there would be no labor rate ingrease. i asked him why my bulk oil prices increased monthly throughout the first half of 2008 but have never come down, isn't that inflation? what about the price increases on new vehicles? no answer of course. oh well, i'm remaining optimistic!

XDCX · 01-21-2009, 04:13 PM

Quote:

Originally Posted by squish

well, it's official. no labor rate increase for one more year. when i originally talked to the dm earlier this month he said since there was been no inflation last year, there would be no labor rate ingrease. i asked him why my bulk oil prices increased monthly throughout the first half of 2008 but have never come down, isn't that inflation? what about the price increases on new vehicles? no answer of course. oh well, i'm remaining optimistic!

Thanks for the update.

While it's not the news that anyone wanted to hear, I doubt that anyone's really surprised. Chrysler needs sacrifices from all of their stakeholders - this will be one of the ones supplied by the dealers.

On the plus side, I'm pleased to see that you're still optimistic.

possum · 02-10-2009, 01:51 PM

At the Jim Press Dealer meeting in Dallas we were told the Warranty rates will be dropped by 5%. It was unclear if that was on "time" , or "dollar rate". Anyway, it was stated as a "shared sacrifice".

XDCX · 02-10-2009, 03:20 PM

Quote:

Originally Posted by possum

At the Jim Press Dealer meeting in Dallas we were told the Warranty rates will be dropped by 5%. It was unclear if that was on "time" , or "dollar rate". Anyway, it was stated as a "shared sacrifice".

That's the first I've heard of a possible 5% decrease in warranty payments - maybe it was a misunderstanding? Let's hope so anyway....

I know that Chrysler has been boastful that their warranty expense has been decreasing and they cite this data as proof that vehicle quality is improving. Maybe that's what Press was referring to?

Anyone else heard about a possible 5% reduction in dealer warranty payments?

squish · 02-10-2009, 03:54 PM

i haven't heard anything, but the reduction in claims translating to higher quality rings a bell.

however i wouldn't be suprised if they reduced it because us dealers, who have little to no say in chryslers plans, probably haven't "sacrificed" enough yet...right....

01-06-2009, 03:36 PM	#1
squish Senior Member Join Date: Nov 2008 Posts: 208	Automatic Labor Rate Increse? Wasn't the warranty labor rate increase (that we were supposed to get in october) supposed to take affect on January 1? has anyone heard the status of it or do i have my dates wrong?

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
What's your store doing for Labor Day?	XDCX	Automotive Discussions	7	09-03-2011 03:41 PM
Adendum to Automatic Labor Increase	dodgeboy	Service	4	03-25-2009 08:26 AM
Cfc Rate Coupons	dafuzz1956	Finance	3	01-27-2009 07:58 PM
Fmcc Rate	dafuzz1956	Finance	9	12-05-2008 03:35 AM

Welcome to DealershipForum.com

Click Here to Register Now

01-06-2009, 03:56 PM	#2
squish Senior Member Join Date: Nov 2008 Posts: 208	just got word from my dm that it will be postponed indefinetly, expect an email from detroit soon.

01-06-2009, 04:13 PM	#3
CL Pgh Senior Member Join Date: Oct 2008 Posts: 1,242	Welcome aboard!!! Unfortunately we got the same info. early today (indef. postponed). Dealer & I spoke about this and he's guessing this is going to be on the list of "sacrifices" presented to congress in 90 days.

01-06-2009, 04:27 PM	#4
dodgequality Senior Member Join Date: Feb 2008 Posts: 337	Sacrifice is not the right word - it's called a haircut today and get ready for a shave job - soon and often. It is so hard to stay optimistic. The screw keeps turning down.

01-06-2009, 08:44 PM	#8
dafuzz1956 Senior Member Join Date: Oct 2008 Posts: 691	Question How many more take aways can we have? First it was the front end grosses with no more leasing with cfc, now today we are suppose to send customers to their credit union and pay them to do it and now we will get paid less than we should to do warranty work, there really isn't much left out hear in the real world.

01-21-2009, 03:51 PM	#9
squish Senior Member Join Date: Nov 2008 Posts: 208	well, it's official. no labor rate increase for one more year. when i originally talked to the dm earlier this month he said since there was been no inflation last year, there would be no labor rate ingrease. i asked him why my bulk oil prices increased monthly throughout the first half of 2008 but have never come down, isn't that inflation? what about the price increases on new vehicles? no answer of course. oh well, i'm remaining optimistic!

02-10-2009, 01:51 PM	#11
possum Senior Member Join Date: Jan 2009 Posts: 1,122	At the Jim Press Dealer meeting in Dallas we were told the Warranty rates will be dropped by 5%. It was unclear if that was on "time" , or "dollar rate". Anyway, it was stated as a "shared sacrifice".

02-10-2009, 03:54 PM	#13
squish Senior Member Join Date: Nov 2008 Posts: 208	i haven't heard anything, but the reduction in claims translating to higher quality rings a bell. however i wouldn't be suprised if they reduced it because us dealers, who have little to no say in chryslers plans, probably haven't "sacrificed" enough yet...right....