The original recall covered only 2000 F150, Expedition and Navigators, with a few 2001 F150 (depending on the build date). Not much has changed on these initial vehicles, other than the labor operation used for a leaking switch changed from 05S28C to 05S28E. Only the additional vehicles added recently (covering better than 4 million vehicles) under this same recall require a different repair procedure. And therein lies the confusion. The initial repair is to disable the cruise, tape the switch up to prevent contamination and using a tie-strap, position the switch away from other components until final repair parts (a fused jumper harness, not a new switch) are available for mass distribution, expected in early November.

The only exception to the above is if the speed control deactivation switch is leaking. If the switch is currently leaking, on any model year vehicle including the original population of vehicles the brake repair kit should be installed per the original instructions. Should you have any questions, contact us at WPI, or read the Service Advisor & Technician Job Aid attached to the latest Supplement, #5

Certain 2005 MY F-150 trucks are being ordered with the optional "Roush" 20-inch wheel and tire package. Ford does not provide the warranty on these tires and wheels. Any warranty repairs attributed to these wheels or wheel replacements must be handled with Roush and requires prior approval. Contact Roush at: 1-800-59-ROUSH...

Warning - all Ford Lincoln Mercury Dealers. To avoid possible large losses take the time now and instruct your advisors and parts counter personnel to read and familiarize themselves with the new OTC (over the counter) prior authorization procedure for engine and transmission assemblies. This new program is already in effect as of August 1st 2005.

Recently, Ford has released a new “Engine Maint” ESP plan. Please read it thoroughly because despite being called an “Engine Maint” plan it only covers an oil changes. Wear items are not covered by this plan and there is no provision for the multi-point inspection. However, the multi-point inspection is the key to making money on this plan by locating problems with the vehicle during this inspection. So you obviously don't want to skip it all together, just don't expect any further labor allowance from Ford at this point.

There are two separate plans regarding this customer loyalty focused plan. One plan pays $30.00 and the other plan pays $15.00. The “Engine Maint” plan is set up to be sold to any car/truck make or model, not just Ford’s products.

Key point to remember is this is simply an oil change program designed to get the customer back in the dealership, be sure to check your oasis for any other warranty or potential covered parts, otherwise ANY OTHER Repairs are customer pay!

Ford continues to tighten down on warranty expense, through the ACES II system audits. One of their more recent restrictions pertains to non-Diesel mechanics repairing Diesel engine type repairs. If a diesel claim rejects for "not shop competent" due to an improper tech performing the repair. Ford now requires documentation faxed, if the tech number is changed and the claim resubmitted a second time. To avoid possible large losses, be sure you assign all such repairs to the proper technicians and keep good documentation. Time punches and mechanics notes will be required even if it was an error made upon entry.

Ford Dealers: As of June, 1st 2005. All motorcraft engine and transmissions will only get handling allowance, (7V000, 6V006) they will no longer receive parts mark-up. The following is an excerpt of the dealer communication on FMC dealer on May 27th on this policy change:

Quote:
MOTORCRAFT HANDLING ALLOWANCES EFFECTIVE JUNE 1, 2005
Beginning with repairs submitted on or after June 1, 2005, a standard handling allowance will be paid in lieu of a parts price mark-up on all Motorcraft new and remanufactured engines and transmission assemblies installed for Company paid repairs (e.g., Customer Satisfaction Programs, Service Parts Warranty, Field Service Actions, or After-Warranty Assistance).

HANDLING ALLOWANCE REFERENCE CHART
For handling allowances by engine and transmission type, please refer to the "Powertrain Assembly Reference Charts" (dated April 1, 2005) which can be accessed at FMCDealer/Parts & Service/Technical Tools/Powertrain Reference Guide (formerly known as Engine/Transmission Exchange Guide)/ Engine or Transmission.
end quote: FMCdealer.com, 05/27/05.

Ford dealers are authorized to claim an allowance of $1.00 per repair that involves splicing the vehicle harness to the jumper harness (Labor Operation 05S28C). This allowance covers the cost of the miscellaneous supplies needed to perform the wire splices. To claim the allowance, enter the Misc. Expense code "OTHER" in the amount of $1.00.

Recently Ford has been cracking down on sublet invoice rules. Due to this it has become paramount that all necessary information must be included on the sublet bill. The following list from the Ford warranty policy manual details information that must be on all repair orders:

SUBLET INVOICE REQUIREMENTS
When reimbursement is claimed for any repair that is sublet to an outside
repair facility, the sublet invoice must contain the following information:

• The name, address and phone number of the sublet facility
• A pre-printed sublet invoice number
• The date of repair
• The dealership repair order number and purchase order number
• The VIN of the vehicle being repaired
• The mileage of the vehicle being repaired
• A list of all parts (including description and part number) used to complete the sublet repair, and the cost of each part
• A complete description of all work performed
• Separate parts and/or labor totals

Hyundai Fuel Reimbursement program

A recent HMA (Hyundai Motors of America) study revealed that 90% of Hyundai dealers in the United States provide a free full tank of gas to their customers at delivery. This practice has proven to raise customer's perception of the sales experience and enhance the customer's perception of value. Previously Hyundai dealers have funded this courtesy, however rising fuel prices have made this practice cost prohibitive for many dealerships.

While the rising fuel prices have also impacted HMA, the manufacturer mentioned, in a recent bulletin that it is concerned with the profitability of these dealerships . With this, HMA has announced a fuel reimbursement program that is effective July 1st commencing with vehicles allocated to dealerships after July 1st. The new program will be funded through an increase in transportation charges, which are also effective July 1st.

All 2004MY and 2005MY vehicles will be eligible and will be invoiced with the higher transportation charge. This program will automatically reimburse dealers $15 dollars for each vehicle as part of the PDI process. The payment will show as a sub-let payment of $15 dollars within the PDI payment summary.

While this program will not cover the cost of a full tank of gas, it will assist the dealers in maintaining their profit margin and allow dealers to maintain the customer's perception of value and satisfaction.

Ford issued/released TSB 04-05-02 announcing the availability of a new brake pad to address customer complaints for excessive dust. Brake dust is not a warrantable repair. The dust is considered (by Ford) to be a by-product of normal wear, and therefore not covered under the bumper-to-bumper warranty or ESP. Ford's recent review indicates that some dealers have submitted warranty claims referencing a customer complaint for dust. These claims will be charged back. Further, Lincoln Complimentary Maintenance and ESP Maintenance claims will not be denied for pad replacement due to wear, but may be denied for dust when the pad thickness is above minimum requirements. All future warranty claims will be returned if the customer complaint is brake dust.

This is not very subtle! But, Ford rarely is! Make sure that your service writers and technicians are educated on this issue, write up is clear on the complaint, and your measurments are documented on the hard copy.

The 9J460 sensor was made somewhat clearer today with the new TSB which supercedes 04-03-01 (new one is 04-11-01) and went into effect today. It states that all listed applications can now be serviced with the DPFE Sensor 4U7Z-9J460-AA. Hopefully Ford has finally figured out the conflicting information they been promulgating these many moons is confusing and the rejects and reasons were arbitrary and non-sensical. Have fun!!!!!

This notice is in regards to PROGRAM 02M01 and TSB 04-03-01

As everyone knows the DPFE sensors necessary to perform program 02M01 or TSB 04-03-01 has changed numerous times in the last year. As of April 1st , 2004 the F21Z-9J460-AA has been obsolete and should be returned to FOMOCO, discontinue the use of this sensor, Ford will no longer pay for repairs with the improper sensors charged out on them. Please refer to the published Program and/or TSB for correct part numbers (2M5Z-9J460-AA or 4U7Z-9J460-AA) per application. Any repair orders received at WPI with the obsolete parts charged out on them will be returned to the dealer with a copy of this notice and a yellow note informing dealer to get customer back into service and install the correct parts.

Please copy and share this notice with all employees, we have noticed that this is a severe problem with some dealers and must be corrected as soon as possible. Improper parts installed on concerned vehicles are subject to charge back and are a cause of repeat repairs for your dealership, resulting in unhappy customers and high warranty trend.

The confusion on which sensor should be used for which vehicle/application continues. The program 02M01 and the TSB 04-03-01 are very confusing and contradictory. For example: 02M01 states that the correct and only sensor to be used on a 2001 Focus w/2.0L Zetec engine is the 2M5Z 9J460 AA sensor kit. 02M01 also states that the 2002 Focus/ w/2.0L Zetec engine should use the 4U7Z 9J460 AA sensor. But the TSB states that the 2001 & 2002 Focus w/2.0L Zetec engine should use the 2M5Z sensor. Hence the confusion. The only difference between the programs is that the TSB expires at 3/36, and the Program 02M01 extends coverage to 5/60. How that makes a difference in which sensor to use is beyond me, but that is indeed the case. The same situation and rules apply to the Explorer Sport. Ford is so arbitrary about the replacement of the original "bad" sensor, it's almost impossible to figure out which one is the correct one until it rejects and Ford tells you which sensor to use.

We will be contacting Ford this week. When find out more we will let you know.

FORD OVERRULED SAFETY TEAM ON DEFECTIVE LATCHES.

Ford Motor Co. decided against a recall of 4.1 million pickups and sport utility vehicles despite its own safety teams' concerns over possible faulty door latches, the Detroit News reported Sunday. Latch failures on some vehicles have been blamed for fatal accidents in which doors flew open. At least 16 lawsuits have been filed, some have been settled, and others are pending. Federal investigators also are looking at legal action against the company.

A recall of the popular trucks - including the F150, F250, Expedition and Lincoln Navigator - could have cost the company a half-billion dollars.However, Ford is not out of the woods yet. NTSB (National Transportation Safety Board) may force Ford to conduct the Recall.

Ford is removing "over the counter" wholesale sold assemblies from the measured total line on the warranty trend report (126) effective April 2004. See details below.

To: All Ford and Lincoln Mercury Dealers, Service Managers, and Parts Managers
OVERVIEW: In an overall effort to improve your ability to wholesale Ford & Motorcraft Remanufactured Gas and Diesel Engine and Transmission Assemblies, the following change will be made and will be effective with the April 2004 dealer warranty measurement report (126): Over-the-counter service parts warranty repairs made by independent repair facilities and non-warranty approved fleet accounts on Ford & Motorcraft Remanufactured Gas & Diesel Engine & Transmission Assemblies (and then subsequently submitted for reimbursement through Ford and Lincoln Mercury Dealers) will no longer be included in the measured total lines. These SPW type repairs will fall "below" the measured total line and will not impact a dealer's entry or progression in the Warranty Counseling Process. Warranty repairs performed on Ford & Motorcraft Remanufactured Gas & Diesel Engine and Transmission Assemblies in the dealer repair shop will continue to be included in the measured total line of the 126 report (regardless of where the assembly was installed). CLAIM CODING When submitting a SPW claim for repairs made by independent repair facilities and non- warranty approved fleet accounts on Ford & Motorcraft Remanufactured Gas & Diesel Engine & Transmission Assemblies (and then subsequently submitted for reimbursement through Ford and Lincoln Mercury Dealers): The claim must be submitted with a miscellaneous expense code of SVCLBR with the corresponding labor reimbursement amount. Failure to use the miscellaneous expense code of SVCLBR will cause the repair to be included in your measured expense.

Per the attached letter From GM to the North Central Region. GM will be restricting the use of claim type "B" for dealers with higher than peer group utilization in an attempt to reduce costs and improve CSI.:

GENERAL MOTORS DEALERS IN THE NORTH CENTRAL REGION
Subject: Warranty Claim Processing - Potential Restrictions Message VSG20040255

In a recent review of paid warranty claims, we have identified a significant number of claims showing dealer empowerment Authorization Code "B" (Repeat, Related Repairs) and Claim Type "B" (Replaced GM Part Failures). Dealers are normally empowered to use these codes for processing repairs that repeat or overlap a previously performed repair.

Many GM dealers have developed a process to address "repeat repairs" and generally benefit with higher CSI scores and lower warranty expense indicators. GM recommends that all dealers looking for improved SSS CSI Q12 scores implement a "Repeat Repair Analysis and Prevention" tool to better understand why these situations occur at your dealership. This will provide your service management team with a good road map to get to the core of any causes of customer dissatisfaction resulting from a repeat repair situation. Your Area Service Manager can provide additional information on this subject.

Your Zone Team would like to better understand the circumstances surrounding these tracking results. Our key objective is to fully understand the impact of Authorization Code B and Claim type B claims on these indicators.
Beginning March 1, 2004, the North Central Region will set up monthly tracking indicators to monitor these condition. These indicators are:

- Effective Auth Code B Dollars as a Percent to Total Warranty Dollars
- Claim Type B CPVS
- SSS CSI Q12 - Percent of all Concerns Corrected
- Technician Training Accomplishments
- Total Warranty Claim Differential

Points as Compared to Peer Dealers Differential Points are applied to Claim Processing based on the difference between a dealer's Claims and the Peer Group Claims.

Individual dealer letters will be forthcoming if you meet the noted criteria. If your dealership meets some or all of these criteria, your dealership's ability to submit warranty claims using Authorization Code B and Claim type B will be suspended.
Your Area Service Manager is in the best position to assist you in analyzing the causes of repeat repairs, and provide your service staff with recommendations to eliminate their reoccurrence. Should you have any questions regarding this information, please contact your Area Service Manager.

Robert J. Bradley

Regional Warranty Manager

You must provide the following documentation on the technician copy of each brake service repair order. On a fully electronic repair order system, this information must be included in the technician comment section.

Repair Order Documentation - Rotor Refinish:
When resurfacing a brake rotor or drum, the ORIGINAL thickness (measured thickness before refinish) and REFINISHED thickness (measured thickness after refinish) must be written/documented on the repair order hard copy. If a rotor replacement is necessary, the original thickness and reason for replacement must be recorded. It is not necessary to replace both front rotors if only one front rotor does not meet specifications. Likewise for the rear is applicable.

Repair Order Documentation - Lateral Run Out and Correctional Plate Usage:
Anytime a new refinished hub less brake of rotor is installed on a vehicle, the rotor assembly MUST BE measured for Lateral Run Out (LRO) and if the LRO measurement is greater than .002 inches (.050mm), correct it by using the proper Brake Align(R) Correctional Plate (Do Not Refinish new rotors or newly refinished rotors to correct LRO). This LRO measurement and the Correctional Plate part number used to correct the LRO, MUST ALSO BE recorded on the repair order hard copy.

We have had several dealers submit incomplete DOT codes. It may look like their
is only 8 characters but look closely. The first part of the DOT code, which is 8
characters in length, appears separately from the date code portion of the DOT,
which is imprinted in a circle behind the initial 8 characters.

Not kicking any serious Firestone butt over this recall, but I think we've all done
a couple. Problem is, once again, DOT code recognition. Most replacement
tires for these Excursions are Pirelli tires. Dealers have called Ford advising
Ford that Pirelli tires have 8 character DOT codes, not 10-12 characters every
other tire maker has. On Pirelli tires the first part of the DOT code, which is
8 characters in length, appears separately from the date code portion of the
DOT, which is imprinted in a circle behind the initial 8 characters. They will
still have 12 characters. We've had several dealers submit incomplete DOT
codes, and maybe this will clear it up.

According to the latest Supplement 1 of Customer Satisfaction Program 04B14, and the "Emergency Replacement Tire Order Form", all orders must include one Black Side Wall (BSW) tire for every four ordered, to be used as the spare. The way we read this is: that it only applies to "emergency" orders from the Excursion Hot Line team number. However, dealers should keep in mind when ordering tires that they should only replace 4 of the OWL (Outlined White Letter) tires and one BSW (Black Side Wall) tire for the spare. Naturally, Ford is doing everything in their power to make this as complicated as possible. Not sure this is going to be a problem, but the potential is there. Remember to check for updates on FMCDealer.com daily.

Stop Lamp Switch
Ford just published the parts and labor operations for this recall this afternoon. Recall covers 938,759 Taurus' and Sables built from 2000 - 2003 with adjustable pedals, and all 2000 Taurus' and Sables with fixed pedals. Recall pays 0.6 hrs. Almost a million of these!

This supplement re-instated 0.3 hours in labor for a road test, and revised technical instructions which provide for a post repair road test to determine that the repair and drivability concerns were corrected.

This is much like the "B" and "M" programs, in that if the concern is present, complete the repair. If the customer states that their vehicle stalls, has engine hesitation, loss of power, surging, or other similar symptoms, the FDM is to be replaced. Ford has determined that there is no need for further diagnostics prior to replacement. This program covers only the replacement of the FDM. Ford has already rejected claims for nickel/dime items like clamps that have been broken during replacement, and they have also refused any additional time requested due to problems replacing this FDM. We have dealers that are still attempting to claim for the old style FDM, which Ford made "obsolete" on January 22, 2004. Effective that date, no previous design FDMs were authorized to complete the repair, due to the availability of the new design (1M5Z 9H307 CA).

Some service departments seem to feel "I've never met a FDM I liked". Hard to prove, but it looks like every Ford Focus that drives into certain dealerships get the FDM replaced. I'm sure that Ford is looking at the returned FDMs, and I would guess that they had better be clogged up/gunked up/messed up, or the possible ramifications would be potential charge backs. I have yellow-noted several dealers, several times, that the tech hard copy comments do not explain the reason for the repair. "Performed program 03N01 per customer letter" is not sufficient information. Did any symptoms exist that would indicate failure or potential failure of the FDM? Any customer complaints of stalling, etc? A letter stating that the FDM is getting an extended warranty lifetime of 10 years doesn't mean that every FDM in every Ford Focus will fail and should be replaced.

Many dealerships handle this repair as such. Vehicle comes in FDM gets replaced. No testing, no customer interview, no tech comments, no management initials, no diags. New FDM is installed. These things are expensive modules, and Ford is paying Them 1.9 hours to install & post road test. There must be several hundred thousand Focus' out there, and when is Ford going to pull the plug and start auditing the abusers of the program? I would suggest sooner, rather than later. Especially dealers that order the new design FDMs by the hundreds and just install them in every Focus that drives by their dealership. We see this as a potential area for Ford to try to recoup some of the money being paid out especially unjustified replacements.

As with the 01B77 tire replacement program, stand by for further updates to this program. They have not taken into account, during the publication of this program, that the suspect tires could have been added to other vehicles (Super Duty Trucks, for example). These may indeed be popular replacement tires for other vehicles, and just because they weren't original
equipment when leaving the factory, there will be dealers calling and telling us they have a non-recall vehicle with the tires. Ford didn't cover that, but I'm sure when it happens, their reply will be to send them to a Firestone dealer, and let them handle it. And, when a vehicle comes in and they have the tires in stock, the labor op to replace them doesn't cover the inspection, so remember to use 04B14E (0.4 to inspect and possibly return at a later date for the replacement tires) and 04B14G for 1.8 to replace the tires and the Tire pressure warning label!

Service must get DOT codes off the old tires. They will be required to get the claims paid.

Ford is removing "over the counter" wholesale sold assemblies from the measured total line on the warranty trend report (126) effective April 2004. See details below.

To: All Ford and Lincoln Mercury Dealers, Service Managers, and Parts Managers
OVERVIEW: In an overall effort to improve your ability to wholesale Ford & Motorcraft Remanufactured Gas and Diesel Engine and Transmission Assemblies, the following change will be made and will be effective with the April 2004 dealer warranty measurement report (126): Over-the-counter service parts warranty repairs made by independent repair facilities and non-warranty approved fleet accounts on Ford & Motorcraft Remanufactured Gas & Diesel Engine & Transmission Assemblies (and then subsequently submitted for reimbursement through Ford and Lincoln Mercury Dealers) will no longer be included in the measured total lines. These SPW type repairs will fall "below" the measured total line and will not impact a dealer's entry or progression in the Warranty Counseling Process. Warranty repairs performed on Ford & Motorcraft Remanufactured Gas & Diesel Engine and Transmission Assemblies in the dealer repair shop will continue to be included in the measured total line of the 126 report (regardless of where the assembly was installed). CLAIM CODING When submitting a SPW claim for repairs made by independent repair facilities and non- warranty approved fleet accounts on Ford & Motorcraft Remanufactured Gas & Diesel Engine & Transmission Assemblies (and then subsequently submitted for reimbursement through Ford and Lincoln Mercury Dealers): The claim must be submitted with a miscellaneous expense code of SVCLBR with the corresponding labor reimbursement amount. Failure to use the miscellaneous expense code of SVCLBR will cause the repair to be included in your measured expense.

Per the attached letter From GM to the North Central Region. GM will be restricting the use of claim type "B" for dealers with higher than peer group utilization in an attempt to reduce costs and improve CSI.:

GENERAL MOTORS DEALERS IN THE NORTH CENTRAL REGION
Subject: Warranty Claim Processing - Potential Restrictions Message VSG20040255

In a recent review of paid warranty claims, we have identified a significant number of claims showing dealer empowerment Authorization Code "B" (Repeat, Related Repairs) and Claim Type "B" (Replaced GM Part Failures). Dealers are normally empowered to use these codes for processing repairs that repeat or overlap a previously performed repair.

Many GM dealers have developed a process to address "repeat repairs" and generally benefit with higher CSI scores and lower warranty expense indicators. GM recommends that all dealers looking for improved SSS CSI Q12 scores implement a "Repeat Repair Analysis and Prevention" tool to better understand why these situations occur at your dealership. This will provide your service management team with a good road map to get to the core of any causes of customer dissatisfaction resulting from a repeat repair situation. Your Area Service Manager can provide additional information on this subject.

Your Zone Team would like to better understand the circumstances surrounding these tracking results. Our key objective is to fully understand the impact of Authorization Code B and Claim type B claims on these indicators.
Beginning March 1, 2004, the North Central Region will set up monthly tracking indicators to monitor these condition. These indicators are:

- Effective Auth Code B Dollars as a Percent to Total Warranty Dollars
- Claim Type B CPVS
- SSS CSI Q12 - Percent of all Concerns Corrected
- Technician Training Accomplishments
- Total Warranty Claim Differential

Points as Compared to Peer Dealers Differential Points are applied to Claim Processing based on the difference between a dealer's Claims and the Peer Group Claims.

Individual dealer letters will be forthcoming if you meet the noted criteria. If your dealership meets some or all of these criteria, your dealership's ability to submit warranty claims using Authorization Code B and Claim type B will be suspended.
Your Area Service Manager is in the best position to assist you in analyzing the causes of repeat repairs, and provide your service staff with recommendations to eliminate their reoccurrence. Should you have any questions regarding this information, please contact your Area Service Manager.

Robert J. Bradley

Regional Warranty Manager