the workarounds to avoid paying parts markup violates our statute as it requires that the dealer be paid the fair wholesale value of the part under 61-4-213(11) even if the part is furnished without cost. 61-4-213. Warranty reimbursement. (11) If a motor vehicle franchisor supplies a part or parts to a motor vehicle franchisee at no cost or at a reduced cost for use in fulfilling a warranty, the franchisor must compensate the franchisee for the franchisee’s cost of the part, if any, plus an amount equal to the franchisee’s prevailing retail parts markup, multiplied by the fair wholesale value of the part. The fair wholesale value of the part is the greater of: a. the amount the franchisee paid for the part or a substantially identical part if already owned by the franchisee; b. the cost of the part shown in a current or prior established price schedule of the franchisor; or c. the cost of a substantially identical part shown in a current or prior established price schedule of the franchisor. (emphasis added) New issues seem to develop every time one of our dealers has a discussion with an OEM warranty rep. In an effort to stay on top of what is occurring in the field, MTADA Executive Vice President Bruce Knudsen and his staff are in the process of developing a comprehensive survey of the dealer body regarding what is taking place at the dealership level regarding retail labor time guide use and parts reimbursement. You may have already seen the survey. If not, it will be coming to your inbox soon. Please watch for it and respond as soon as you can. Once in, the survey results will be shared with the dealer body. In addition, substantial time at the MTADA Convention on Aug. 15-18, 2024, in Helena will be devoted to warranty reimbursement issues, including the OEM’s proposed “-0- cost” initiative on some parts, including EV batteries. You won’t want to miss that. WORKPLACE SAFETY: You’re naked without it. safemt.com What’s essential to making the most of opportunities in Montana? Workers who stay safe on the job and keep progress progressing. Without workplace safety, workers are exposed to injuries of all kinds. In fact, they might as well be … naked. Montana State Fund is Montana’s first choice for workers’ comp insurance and the source for workplace safety expertise. Lower your exposure today. 12 MONTANA AUTO DEALER
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