1. INTRODUCTION

The purpose of this manual is to explain the policies and procedures required when performing and administering TICO Manufacturing (“TICO” or “the Company”) Warranty Claims.

TICO’s goal is to provide fair and consistent claim reimbursement when claims are submitted following these policies and procedures.

TICO requires all TICO Dealer (the “Dealer”) personnel involved with TICO warranty become familiar with and understand the information contained within this manual.

Any concerns with the information found in this manual should be directed to the Uptime Group at 800-336-4500 option 5-1.

All material in this manual is property of TICO

1.1 WARRANTY SERVICE STATEMENT(S)

• TICO warrants that each new vehicle is free from defects in material and workmanship that occur during the applicable warranty period and under normal use.

• A Dealer is authorized and required by its Dealer Sales and Maintenance Agreement (the “Agreement) to provide warranty service at no charge to all TICO vehicles covered under warranty, regardless of who sold the vehicle.

• Warranty service includes any additional warranty policies which TICO will establish with respect to goods covered by the Agreement, such as service parts or components, other than vehicles. The Dealer agrees to cooperate in resolution of complaints from users/customers of TICO vehicles.

• The selling Dealer is responsible for issuing the applicable New Vehicle Limited Warranty Policy to all initial and subsequent users/purchasers of warrantable TICO® vehicles. The New Vehicle Limited Warranty Policy can be found in the Service Portal Vehicle Summary Page.

• It is understood and agreed that any employees responsible for the submission of warranty claims to TICO will not be paid on any basis related to the dollar amount of warranty reimbursement. This includes, but is not limited to, incentives on the number of claims submitted and bonuses paid on any part of the reimbursed amounts.

2. QUICK REFERENCE

2.1 WHAT’S NEW

The new Warranty Administration Manual has been updated to better reflect current warranty policies. All previous warranty information will be superseded by this manual. The organization of the manual is to provide clarity and simplicity to the TICO warranty process.

2.2 WARRANTY TIME LIMITS

2.3 PREAPPROVAL

In order to ensure that the best repair is being made, TICO requires pre-approval before beginning repairs on specific

components repaired / replaced under Warranty.

These preapprovals can be in the form of:

• TICO EDGE

• Supplier Approval

Pre-approval numbers need to be recorded on the first line of the Complaint, Cause, and Correction (3 Cs) section in the warranty claim.

NOTE –

1. Authorization alone does not ensure payment for warranty claims. The Dealer is responsible to determine if the defect is warrantable and within warranty coverage period / guidelines.

2. Pre-approvals for paint and body repairs - repairs must be completed within 60 days of approval decision date.

3. A claim requiring pre-approval that is submitted without the authorization number is considered an improper warranty submission, and will be rejected by the Uptime Group

2.4 PRE-APPROVALs REQUIRED BY VEHICLE MODEL YEAR

3. DEALERSHIP RESPONSIBILITIES

3.1 REQUIREMENTS

Dealership is required to:

Provide the owner with the applicable New Vehicle Limited Warranty Policy.

1. Advise owner that routine maintenance services are to be performed as specified in Operator’s Manuals.

2. Advise owner that tires, routine maintenance service and normal replacement of service items, damage from accidents, fire or other casualty, misuse, negligence or racing, failures caused by parts not supplied by TICO, and modification of any part of the vehicle is not covered by the warranty.

3. Advise owner that all Operator's Manuals contain the section, Owner's Assistance Guide, which informs the customer of the steps they should take to remedy any problems arising from a new truck purchase.

4. Maintain appropriate parts, tools and service facilities to meet service responsibilities.

5. Be properly staffed and trained to administer TICO ’s Warranty Procedures and Policies.

6. Implement controls to eliminate over-repair, improper repairs, or unnecessary repairs.

7. Maintain a thorough file of all financial and service records, as well as all time documents relating to all service / warranty work.

When administering TICO warranty:

1. Accurately record customer concern.

2. Duplicate the customer's concern.

3. Obtain Vehicle Health Report.

4. Review vehicle history.

5. Review health report.

6. Use all applicable Service Information to identify and diagnose to the root cause of failure.

7. Determine repair plan, and enter those repairs on the repair order.

8. Determine which warranty coverage is applicable: TICO and/or Supplier

9. Determine if the repair plan is included in Warranty Coverage

10. Dealer is allowable up to .5 hours per case to document all requirements

3.2 HEALTH REPORTS

A Health Report is required to be generated at the start of the warranty repair or the subsequent warranty claim will not be paid. The Health Report must be visible in TICO Edge Case, generated by the TICO tools or similar Diagnostic Tool (JPRO, Cummins)

All Vehicle Telematics System Health reports will not be allowed to satisfy the health report requirement. The Health Report scan date must be within a week prior to the claim fail date, up to the completion date of the claim.

Labor time to perform a health report is not reimbursable, due to the multiple benefits health reports provide:

1. Validation of VIN & hours

2. Provides value to Dealer, Customer, and TICO

3. Provides diagnostic direction

4. Should be incorporated into the standard write up process

3.3 CUSTOMER CONCERNS

The Dealer agrees to investigate and resolve all customer concerns from users of products reported directly to the Dealer, and report to the Field Service Manager (FSM) and the Uptime Group any issues which the Dealer is unable to resolve.

3.4 BEYOND WARRANTY REQUEST

In some cases, a customer may ask for assistance outside of warranty coverage due to past failures or experiences with their vehicle.

TICO may choose to participate in those repair costs outside of warranty coverage to promote customer and product satisfaction when requested.

Customer requests for beyond warranty assistance are to be submitted via the Sales Policy process. The Field Service Manager and/or Dealer Manager must provide approval via a TICO EDGE case.

The goodwill case and authorization numbers must be included in their appropriate fields in TICO EDGE case for proper submission to the Uptime Group.

Subsequent failure of a part which originally received Goodwill Assistance does not carry parts warranty coverage, unless the customer significantly participated in the cost of the goodwill repair of at least 33% of the total parts and labor.

3.5 WARRANTY SOLICITATION

Dealer solicitation of customers for the correction of warranty conditions is prohibited. Dealers may not solicit (advertise, contact by phone or mail, offer free warranty check-ups, etc.) customers for warranty service. In those instances where it is determined that a Dealer has solicited a customer for warranty service, repairs will be subject to charge-back.

Contacting individual customers whose vehicles are involved in safety recalls to expedite the repair completion of the recall is not considered warranty solicitation.

3.6 SERVICE INFORMATION

TICO offers complete and up-to-date service information for Dealers. The following materials and services help Dealers fulfill their responsibilities to vehicle owners.

TICO Knowledge Home Page (including)

1. TICO EDGE

2. Operator’s Manual

3. Service Manual

4. Service Letters

5. TICO EDGE PARTS

6. Service Tools

7. Standard Repair Times

8. Health Reports

9. Fault Code

Action Plans Town Hall Meetings:

1. Service Meetings

2. Training Meetings

3. Warranty Town Hall

TICO EDGE contains a vehicle information section, which provides service department staff with one, easy-to-use location for:

1. ISD data

2. Performed SFNs / Recalls information – Operation Code based

3. Warranty history

4. Major Component Serial Numbers

3.7 TICO SPECIAL TOOLS

TICO Dealers are required to utilize essential tools for repairs. See TICO Service Tools Website or TICO Knowledge

Damages or expenses resulting from non-use of special tools is not warrantable.

For Diagnostic tools that generate a print-out or status “code”, the information must be provided as part of the warranty claim submission.

NOTE – Generic charges for tool or machine hookups are not reimbursed under warranty.

4. NEW VEHICLE

4.1 NEW VEHICLE RECEIVING PROCEDURES

4.1.1 CARRIER DELIVERY and INSPECTION

1. Carriers are permitted to deliver vehicles only between 8:00 A.M. and 4:00 P.M., local time, unless prior arrangements have been made to accommodate earlier or later delivery.

2. Unloading a shipment of vehicles is the strict responsibility of the carrier.

3. At destination, all items removed or altered for transit of the vehicle(s) are to be reassembled to original condition by the carrier.

4.1.2 DEALER RECEIVING RESPONSIBILITIES

Each Dealer is responsible to train personnel to inspect new vehicles received by the Dealership and document any damage or deficiencies to the vehicles or any conditions that caused them to differ from the specifications of the new vehicle order. Trucks not built to order are not a carrier issue.

If the Selling Dealer allows alternate location such as an upfitter or end customer to receive the truck directly, the Dealer is responsible for training that location to receive, inspect and report any damage or deficiencies. Damages not reported by the alternate location become the Dealer's responsibility. The Dealer must:

1. Establish a vehicle inspection procedure within the Dealership and train adequate personnel to be responsible for receiving new vehicles according to established procedures.

2. Inspect each vehicle while the carrier representative is present.

3. Describe all transportation loss and damage on all copies of the Bill of Lading / Delivery Receipt accurately and in detail.

4. Sign for delivery by clearly writing the name of the Dealer’s representative, the date, and the time of delivery.

4.1.3 DEALER RECEIVING RESPONSIBILITIES

1. Claims for damages, shortages, variations, and / or concealed damage not properly documented during vehicle inspection and not properly communicated to Uptime Group within 48 hours from delivery will be denied.

2. Dealers must arrange for a prompt vehicle inspection, since tariff regulations permit the carrier to charge for excessive delay beyond the allowable one-hour free waiting time, per load. The one-hour free waiting time begins after all vehicles have been unloaded.

3. All damages, shortages, or variations must be noted in detail on both the carrier and consignee copies of the delivery receipt. Specific damage codes must be indicated on the delivery receipt.

4. For vehicles that arrive in a dirty condition, the Dealer is responsible to immediately wash and inspect, for possible concealed damage. When discovered, the Dealer must immediately notify the carrier of all such concealed damage within 48 hours.

5. If you receive a large order of vehicles that will result in the Dealer not being allowed to properly inspect, contact Uptime Group within the 48-hour time frame of delivery with the received list of VINS.

4.2 LOSS AND DAMAGE CLAIMS / IN-TRANSIT FAILURES

4.2.1 WARRANTABLE FAILURES WHILE IN-TRANSIT

For TICO warrantable failures that occur while the vehicle is in-transit:

1. Vehicle is routed to the nearest TICO dealership.

2. Genuine new TICO® parts must be used.

3. Filed as Op Code “INT01 – Warranty Failure while in Transit”. Freight can be claimed while unit is in transit (must be at a non selling dealer) to expedite the repair.

4.2.2 LOSS AND DAMAGE CLAIMS

Notify the carrier within 48 hours (two working days) of all concealed loss or damage discovered after delivery. A claim must be filed to TICO within 60 days of receipt of the vehicle. Missing items subject to theft or loss are carrier responsibility and must be claimed as loss and damage.

When submitting an estimate for loss and damage caused by the transit company:

1. TICO parts are to be billed at warranty reimbursement pricing

2. Outside repair invoices are billed at cost.

3. Labor to be billed according to applicable SRT’s.

Loss and Damage Claims are filed as the following:

1. On in-transit claims where the repair is being made completely by a 3rd party and the dealer is only processing a PO for payment, TICO will now allow a 0.3 hour claim processing fee to process the in-transit damage claim(Once (1)per claim not repair). Any claim where the dealer is being reimbursed labor does not apply.

2. Claims must contain a copy of the receiving record signed by the carrier's driver, and all other supporting documents.

New, Genuine TICO parts must be used for loss and damage repairs, and are to be priced at Dealer net price, must not include any mark-up or other element of profit.

Parts removed from the vehicle due to transportation damage must be held for 30 days from claim processing.

NOTE – Repairs must be completed within thirty (30) days after damage / shortage is noted. Claims must be submitted within sixty (60) days after repair completion date

4.2.3 MAJOR ACCIDENT / COLLISION/ BODILY INJURY

If notified an in-transit vehicle has been involved in a major accident/collision/bodily injury:

1. Ensure the local authorities have been contacted, and a report of the incident is available.

2. All major accident / collision damages to the vehicle, while in the carrier's possession, must be reported to the ordering locations TICO Field Service Manager for investigation and disposition with the carrier.

3. If instructed to repair vehicle, in-transit damage EDGE case file must be created.

4. If repairs are approved, dealer should file via EDGE to include approval number.

4.2.4 IN-TRANSIT NEW VEHICLE DECLARED TOTAL LOSS

4.2.4.1 DAMAGES RESULTING FROM ACCIDENT

When a vehicle in-transit to a Dealer's location is involved in an accident which results in the vehicle being declared a total loss, the Dealer is to settle the claim with the responsible carrier and provide the carrier, or the carrier's insurance representative, with a certificate of origin and a sale document.

The Dealer must notify the Uptime Group that a vehicle has been declared a total loss. Submit an EDGE case

1. VIN number

2. Any documentation related to the vehicle being declared a total loss

4.2.4.2 DAMAGES RESULTING FROM INCORRECTLY BUILT PRODUCT

When a new vehicle in-transit to a Dealer's location incurs damage as a result of the TICO assembly, design, or parts failure, as determined by the TICO investigating representative(s), the following procedure will apply:

The carrier will notify the Dealer and/or Uptime Group of the ordering location and advise circumstances, extent of damage estimate, and location of the affected vehicle(s).

The Field Service Manager representing the territory where the damaged unit is being held will be responsible for investigating the cause of failure with assistance from TICO Product Integrity, Product Reliability, Engineering, etc., and securing an estimate for repairs.

Repairs exceeding 50% of the invoice price of the vehicle will justify the vehicle being declared a total loss. The local Field Service Manager servicing the Dealer where the damaged unit is being held will secure three bids for the salvage, handle disposition to the highest bidder, and ensure proper credit to the warranty account when funds are received.

If approved to repair, dealer should file via EDGE and include case file and Field Service Manager approval.

4.2.4.3 COMPLETION OF APPRIORATE FORMS

The ordering Dealer will, in either of the above circumstances, create a case using OP Code “QUA01 – Incorrect Build Correction”, indicating the name and address of the purchaser and identify the unit as a Total Loss or Wrecked vehicle.

Adherence to these policies will expedite Dealer reimbursement, manage the orderly disposal of Company assets, and preclude total loss vehicles from being extensively repaired and subsequently sold as new vehicles.

4.3 TRACTOR NOT BUILT TO ORDER

Not Built To Order (NBTO) conditions should be identified at time of receipt during check-in inspection. Dealers should initiate their “not built to order” claim request immediately — no later than 45 days after the vehicle invoice date.

When it appears that a vehicle has been received from an assembly plant with incorrect, insufficient, excessive components, or incorrect parameters, there may be grounds for filing a claim with Op Code “SAL-01 Tractor Not Built to Order”. All full, partial, or missing parts are to be claimed through the Uptime Group.

Items lost or damaged while in the carrier's control are to be handled according to procedures described under the section 4.2.2 Loss and Damage Claims.

4.4 VEHICLE STORAGE PROCEDURES

The Dealer is responsible for adequate storage and protection of new vehicles, whether they are on Dealer premises or elsewhere. Check current procedures against the following recommendations, and correct any conditions creating unnecessary expense and / or preventable customer dissatisfaction.

NOTE – Losses occurring to a unit while it is in storage will not be considered for reimbursement.

4.4.4.1 VEHICLE STORAGE DURATION - LESS THAN TWO MONTHS

Because you cannot accurately predict how long vehicles will remain in inventory, use at least the following minimum precautions on every unit to prevent deterioration:

1. Remove the protective covering from exposed bright metal components (such as polished fuel tanks).

2. Wash vehicles as necessary. ALWAYS wash vehicles delivered during winter months because of exposure to road salt.

NOTE – Washing Instructions — Wash the vehicle with warm water and mild soap, then wipe wet surfaces with a chamois or soft cloth. DO NOT use hot water or strong soaps or detergents. DO NOT wash the vehicle in direct sun, or when the sheet metal is hot to the touch, because this will streak the finish. DO NOT wipe dirt off dry surfaces, because this will scratch the finish.

1. Inspect painted surfaces; touch up all exposed primed or raw metal areas to prevent rust.

2. Apply a thick coat of wax to prevent discoloration from the elements; wax all chrome and stainless steel metal parts.

3. Check the radiator coolant for proper level and adequate freeze protection (–20°F is standard for medium duty models; –40°F is standard for heavy duty models).

4. Cover open ends of vertical exhaust stack.

5. Check battery state of charge with Midtronics Battery Testing equipment prior to starting the vehicle. Batteries should never be lower than 75% state of charge for an extended period of time. If truck is stored for an extended period of time, batteries are required to be charged to 100% state of charge. If battery / batteries require charging, adhere to the following guidelines:

6. The Midtronics Smart Charger (PSC550CC) is the recommended equipment for charging batteries. This type of charger will charge the battery / batteries to ensure proper and safe charging without overcharging.

7. If a smart charger is not available, a regular charger can be used. Follow the table below as a guide on how long it takes to charge each battery.

NOTE – The charge rates depicted are based on one battery. For additional batteries, take each time and multiply it by the number of batteries in the pack.

NOTE – Be sure that all doors are completely closed and all lights and accessories are turned off prior to leaving the vehicles stored for an extended period of time. Any added loads to the electrical system will accelerate the depletion of battery voltage.

4.4.4.2 VEHICLE STORAGE DURATION - MORE THAN TWO MONTHS

Units in storage two months or longer, perform Steps 1 – 5 and Storage Steps 1-5 detailed in previous section (Storage Duration — Two Months Or Less). In addition, perform the following procedures:

1. Visually check that tires are inflated and remove vertical exhaust stack covers.

2. Drive the vehicle a short distance. Shift the transmission in various ranges; apply and release the service and parking brake systems.

3. Turn off the heater and / or air conditioner and any other accessories; shut off the headlights. Park the vehicle and shut off the engine.

4. Disconnect and isolate battery ground cables from all equipped vehicle batteries to prevent accidental starting or parasitic electrical loads from discharging the battery; re-cover the vertical exhaust stack.

5. Drain air brake reservoirs and close the drain cocks.

NOTE – After every 30 additional days of storage, perform Items A through E.

NOTE – Vehicles may be equipped with more than one battery. Disconnect and isolate ground cables from any equipped batteries.

NOTE – When vehicles are stored outside, particularly in coastal areas (salt water and high humidity atmosphere), or other areas of corrosive environment, paint and bright metal may require frequent washing and waxing to prevent deterioration. Determining washing frequency is the Dealer's responsibility.

Storage Facilities

1. Whenever possible, store vehicles indoors, protected from sunlight, in a dry, well-ventilated area. If indoor storage is not available, select storage lots to eliminate conditions that cause deterioration.

2. Park away from transformers and / or electrical motors, because when the protective wax in tire compound cracks, ozone in the air attacks the exposed areas.

3. Park away from trees, high weeds and / or grass to prevent damage from tree or weed sap, and to minimize bird and insect stains.

4. Park away from railroad tracks, paint shops, smoky industrial areas, and locations of possible road splash contact.

5. If a vehicle is parked on an incline, set wheel chocks.

4.5 NEW VEHICLE PRE-DELIVERY SERVICE

This section is composed of reference documents concerning new vehicle pre-delivery and quality inspections.

A complete review has been made of the pre-delivery service operations, and procedures established for the inspection of new vehicles to ensure customers receive vehicles in the best possible condition.

Selling locations are to retain Preparation and Delivery (P&D) records as part of the vehicle sales history file. Claims are not to be filed to TICO for PDI expenses. PDI credit is given through sale of the vehicle.

4.5.1 PREPARATION AND DELIVERY (P&D) REIMBURSEMENTS

TICO will reimburse the selling Dealer for Preparation and Delivery (P&D) service performed on a vehicle prior to delivery to a customer. The selling Dealer will submit for P&D via EDGE Op Code “17.01A – Pre-Delivery Inspection”

THE P&D Inspection must be submitted in TICO EDGE within 30 days of Gold Sticker (TICO Invoice Date).

P&D reimbursement is predetermined based on model year.

If the ISD is reversed, P&D will be charged back to the Dealer. Once the unit is ISD'd correctly, P&D will be reissued.

If the P&D is performed prior to delivery to the purchaser, the selling Dealer must ensure that those items inspected and signed-off on the original P&D are still in good working order and meet TICO quality requirements.

4.5.2 NON-REIMBURSEMENT ADDENDUM

The performance of vehicle P&D and all related adjustments, alignments, routings and clippings, re-torque operations, etc., as required during the course of the P&D, will not be reimbursed as warranty expense.

Consumables see Pre-Delivery Master Instruction Manual for billable fluids and quantities.

4.5.3 VEHICLE INDENTIFICATION LABEL (QR CODE)

The vehicle identification label attached to the driver’s side exterior panel has been designed to provide a permanent record for preparation and delivery of all vehicles. The label is designed to initiate service on the vehicle, and should be used to generate the EDGE PDI Case via Operation Code “17.01A – Pre-Delivery Inspection”to complete on-line PDI.

If this label is damaged, a placement Vehicle Identification Label can be request through the Uptime Group.

4.5.4 REPAIRS TO UNSOLD IN-STOCK VEHICLES

When an unsold, (in-stock) vehicle requires repair, new parts must be used in that repair.

5. WARRANTY COVERAGE

5.1 NEW VEHICLE LIMTED WARRANTY

The New Vehicle Limited Warranty Policy issued to the customer at the time of purchase establishes the time and hour coverage for each vehicle.

TICO warrants that each new Vehicle is free from defects in material and workmanship that occur under normal use while in its warranty coverage period.

TICO’s New Vehicle Limited Warranty applies to New Vehicles sold by authorized TICO Dealer Locations in U.S., Canada, and Mexico.

This warranty automatically transfers to any subsequent vehicle owner while in the New Vehicle Limited Warranty Period.

TICO reserves the right to remove Warranty Coverage on Vehicles that have been determined to be totaled or in a Salvage Condition.

Changes from the original machine index equipment will void warranty for the component. (unless directed by TICO).

5.1.1 TIME REQUIREMENTS

In-Service Date (ISD) - is the start date of the vehicle warranty coverage, when the vehicle is delivered to the first end user / purchaser.

The first end user / purchaser is defined as the first retail purchaser, person or company that has registered the vehicle.

In the event of a delay in placing the vehicle in actual service, the dealer may request a delayed warranty start date on behalf of a customer request. The request for ISD update must be made within 30 days from the sale to the end user.

5.1.2 ESTABLISHING IN-SERVICE DATE (ISD)

The original ISD is the date the vehicle is delivered to the first end user or purchaser. The Dealer establishes the ISD as a part of the vehicle sale when they submit an electronic delivery notice in TICO EDGE Op Code “17.01B – Delivered to User”. This must occur immediately at the time of sale.

5.1.3 HOUR REQUIREMENTS

The hours logged, as recorded on the hour meter of the vehicle at the time P&D, will establish the start of warranty hour requirements.

5.1.4 UPDATING ISD DATE

When additional work is required to complete a vehicle, which would delay the ability to provide the final ISD, a ISD update may still be requested. This must be made within 30 days of Customer/End User placing the vehicle in service.

These events are where an installation of specialized equipment, inspections by government agencies, or any other legitimate reason delays the vehicle from being put into service. TICO will accept, review and approve an update when valid.

Any unit that is deemed by TICO to be in service due to the hour meter reading will be assigned a date by TICO.

ISD update requests are submitted through the TICO EDGE Op Code “17.01C Revised DTU”:

Non-use of a vehicle that has been delivered to the customer will not be accepted as a reason to change the warranty start date. Once a unit has been registered, the warranty start date will not be changed.

5.1.5 UPDATING VEHICLE OWNERS NAME

The purchaser’s name, address, and DTU date are required for the Company’s sales history files. This information is utilized for warranty coverage and vehicle recall notification.

If the purchaser’s name and address are not known when the ISD is submitted, it will be necessary to update the name and address on TICO EDGE. Creation of OP CODE “17.01C Revised DTU” and completing form is required.

5.1.6 DEMONSTATOR WARRANTY

Demonstrators are defined as vehicles that have been driven to shows or expos, general customer demonstration use, or general dealer use (parts truck, service truck, etc.).

Time and distance limitations for vehicles used as demonstrators will be determined by the date (ISD) the unit is placed in demonstrator service and the distance traveled at the time of being placed in demonstrator service (Initial ISD must be entered in TICO EDGE).

Purchasers of Vehicles used in demonstrator service are entitled to any remaining portion of the new vehicle limited warranty.

Distance traveled on vehicles used in demonstrator service does NOT extend the ending hours.

.

5.1.7 FAILURE REPORTED PRIOR TO WARRANTY EXPIRATION

When parts or scheduling delays cause the vehicle to return beyond its stated warranty coverage period, the Dealer must:

Open a Repair Order at the time the vehicle is under warranty to document the customer concern is still within warranty coverage.

The repair order can then be closed out as parts are ordered or customer returns.

The allowable time to complete these repairs should not exceed 60 days from the original Repair Order date. Upon vehicle return, Dealer should:

• Open a new repair order referencing the original repair order with the original customer concern at that time.

NOTE – No additional customer concerns can be added that were not documented on the original repair order opened while under warranty.

Examples of when this process might be used:

1. Customer could not wait or vehicle had to be rescheduled due to shop capacity, or parts were required to be ordered.

2. The parts were not received and the repairs were not completed until after the vehicle warranty period expired.

5.1.8 REPAIRS TO DEALER OWNED VEHICLES

Any repair work performed on the following vehicles must be authorized by the Dealer Principal, or Service Management on the repair order prior to work being performed or the claim being submitted to the Company for warranty reimbursement.

1. New vehicles in Dealer inventory

2. Dealer demonstrator vehicles

3. Used vehicles in Dealer inventory

4. Dealership rental/lease units

5.1.9 REPAIR VERSUS REPLACEMENT

Parts that are repairable that fail during the warranty period should be replaced, rather than repaired.

5.1.10 PARTS USAGE FOR WARRANTY REPAIRS

See Chapter 7 Service Parts warranty policy.

5.1.11 ORIGINAL EQUIPMENT FACTORY INSTALLED BATTERY

Original equipment, factory installed batteries are warranted per the applicable TICO warranty Policy. Coverage amounts to 100% parts and labor from date and hour meter when the vehicle is placed in service (ISD date), as defined in the Owner’s Policy. Only TICO supplied batteries can be used for replacement of factory installed batteries.

• Use of the MidTronics EXP-1000 HD tester for battery diagnostics is required prior to filing warranty claims for confirmed defective batteries. Battery claims require the MidTronics failure code be submitted within the Complaint, Cause, and Correction (3C’s) section of the warranty claim.

TICO has put into place strict quality controls for batteries to assure that vehicles are delivered to dealers and customers with charged and tested batteries.

In the final step of production, the batteries undergo a test just prior to leaving the manufacturing plant. This assures proper charge and certifies that the batteries are “good” per the MidTronics test procedure.

5.1.11.1 PRIOR TO DELIVERY BATTERY WARRANTY

Warranty reimbursement will not be paid for losses occurring during the time a vehicle is stored.

Dealers must verify battery condition within 48 hours from initial receipt of the vehicle by performing a Midtronics battery test. In the event a defective battery is found, a claim under OP CODE XXXX must be filed with the Midtronics code dated within 48 business hours of receipt of vehicle, and in accordance with normal claim requirements.

After 48 business hours, it is considered that the truck was received with fully operating batteries, claims after which will not be paid for battery replacements under the OP CODE XXXX . Testing at time of Receiving Truck, During Storage, At the Time of Delivery and / or Battery Charging is not warrantable

5.1.11.2 BATTERY STATE VALIDATION PROCEDURES AT TIME OF DELIVERY TO END USER

Vehicles are delivered to the Dealer with new, fully charged batteries. It is the responsibility of the Dealer to transfer the vehicle to the customer in the same condition.

It is required that the batteries be pack-tested during the final preparations before delivery, no earlier than one week prior to DTU. The test code printout from the Midtronics EXP tester must be retained as part of the sales and delivery record.

If the pack test result is “good”, no further testing is necessary, and the Dealer has established that the required maintenance has been performed during storage. The test code printout from the Midtronics EXP tester must be retained as part of the sales and delivery record.

If the tester indicates that a break-down test of individual batteries is required, the inference is that proper maintenance has not been performed. Any further charging, testing, and / or replacement of batteries is the responsibility of the Dealer, and will not be reimbursed by TICO.

After completing the necessary service or repair, the final test results printout from the Midtronics EXP tester must be retained as part of the sales and delivery record, indicating that the customer was delivered a vehicle with good batteries.

If battery(s) fail within the first 90 days in service, and the selling Dealer does not have the Midtronics printout dated within one week prior to delivery, the selling Dealer will be responsible for the battery replacement.

5.1.12 DETERMINING WARRANTY COVERAGE

Warranty coverage is determined by:

1. The component that is the root cause of the failure.

2. The component has a defect in material or workmanship.

3. Claims are to be filed as one failure per section.

4. Failure coding to the root cause.

5. Failure of a covered component as a result of a non-covered component failure is not covered under warranty.

Progressive damage:

1. If the covered component fails, directly damaging another component, resulting damage is also covered as progressive damage. (excludes Service Parts warranty, see Chapter 7)

2. Progressive damage should be claimed under the same section as component that is the root cause of the failure, using the group/noun for the root cause to code the claim.

3. Progressive damages are not failures that occur to other components after the original failure has been repaired. These other failures must be viewed as a warrantable defect, and if still in warranty coverage, code to the current failed component.

4. If the component that caused the failure is beyond warranty coverage, the entire repair, including any progressive damage, is not warrantable.

5.1.13 SHOP COMEBACKS

Shop Comeback repairs are repairs that result in a subsequent failure within 90 days, due to an improper original repair (includes P&D inspection). Shop Comeback repairs must not be billed to the retail customer or for Warranty reimbursement.

The cost of a shop comeback repair is the responsibility of the Dealer / Authorized Service Location that performed the improper repair.

• In cases where the Dealer / Authorized Service Location (A) making the improper repair is the same Dealer / Authorized Service Location (A) making the subsequent repair, then the situation is clearly a Shop Comeback to that Dealer / Authorized Service Location (A) and the cost of the subsequent repair should be at the cost of that Dealer / Authorized Service Location (A).

• In cases where a repairing Dealer / Authorized Service Location (A) determines that another Dealer / Authorized Service Location (B) made an improper Warranty repair, the following steps should be followed:

Step 1- The Service Manager of the Dealer / Authorized Service Location (A) should contact the Service Manager of Dealer / Authorized Service Location (B), before any repairs are made, explain the circumstances, and request reimbursement of the costs necessary to perform the subsequent repair. Estimate will be provided as needed / requested.

Step 2- In the event, that the Service Managers of the two facilities cannot resolve the situation, the Service Manager of Dealer / Authorized Service Location (A) should contact their Field Service Manager (FSM), explain the situation and request for assistance.

Step 3- If the FSM for the Dealer / Authorized Service Location (A) agrees that Dealer / Authorized Service Location (B)made an improper warrantable repair, the CSE should do the following:

• Contact the FSM for Dealer / Authorized Service Location (B) and request assistance in getting Dealer / Authorized Service Location (B) to reimburse Dealer/Authorized Service Location (A) for the corrective repair.

• Ensure that Dealer / Authorized Service Location (A) completes the corrective repairs as expeditiously as possible while retaining all replaced parts.

• Ensure that the vehicle is released upon completion of the corrective repairs and not held until responsibilities are determined.

Step 4- After investigating the situation, the FSM for Dealer / Authorized Service Location (B) agrees that Dealer / Authorized Service Location (B) made an improper warranty repair and still refuses to provide payment, FSM should notify the Dealer Principle and FSM for Dealer / Authorized Service Location

(B) that an improper repair was made and should reimburse Dealer / Authorized Service Location (A) for corrective repairs.

Step 5- The FSM for the Dealer / Authorized Service Location (B) will Notify the Warranty Center that Dealer / Authorized Service Location (B) will be charged back for the incorrect repair.

Step 6- Upon the Chargeback, Dealer / Authorized Service Location (A) will be paid for the corrective repair.

If the FSM’s for the Dealer / Authorized Service Location’s cannot reach a resolution, the matter will be elevated within the Uptime Group and TICO management until a resolution is reached.

5.2 ITEMS NOT COVERED BY THE NEW VEHICLE LIMITED WARRANTY

5.2.1 MAINTENANCE / WEAR ITEMS

Parts and Labor needed to maintain the vehicle and the replacement of parts due to normal wear and tear (consumables) are the responsibility of the vehicle owner and are not covered under warranty. The adjustment/maintenance/wear items listed below, are in addition to any items listed under the vehicle

component systems discussed in the remainder of this section. Changes from the original machine index equipment will void warranty for the component. (unless directed by TICO)

Note- Some of the items listed below can be covered as progressive damage from another warrantable failure

Examples of items which are non-warrantable include, but are not limited to:

Examples of items which are warrantable (coverage for defects in material and workmanship only) for the

first 90 days only, include, but are not limited to:

1. Tightening intake clamps

2. Tightening coolant clamps

3. Tightening of loose clamps and fasteners

4. Belts

5. Trailer air hoses & electrical cables

6. Hose tenders

7. Wheel/tire balancing or mounting.

8. Light bulbs (incl. fluorescent tubes, ballast, and Sealed Beams)

9. Windshield wiper blades & washer nozzles

Routine or scheduled maintenance or inspection services recommended by TICO are not covered by warranty. Inspection, minor alignments, and adjustments included in new vehicle pre-delivery schedules are not covered by warranty. (These adjustments would not be charged to the customer and are part of the PDI responsibility.) Items replaced or adjusted due to normal wear are not covered by warranty.

5.2.2 DAMAGE CAUSED BY IMPROPER MAINTENANCE

The New Vehicle Limited Warranty does not cover damage caused by failure to maintain the vehicle. Failures resulting from improper maintenance of the vehicle, or using the wrong part, fuel, oil, lubricants, chemicals, or fluids are not warrantable.

NOTE – Example - End Customer not performing Daily Pre-Operation Checklist

5.2.3 ADJUSTMENTS AND ALIGNMENTS

Adjustments / repairs are not reimbursable, if they are:

1. Included in the Pre-Delivery Inspection Master Instruction Manual as a required adjustment (including steering wheel alignment on those models where included in PDI reimbursement allowance).

2. Alignments to the front and or rear axles are not warrantable. This includes toe, camber, caster, and thrust adjustments.

5.2.4 ABUSE OR MISUSE

Failures resulting from abuse or misuse of the vehicle by the operator or carrier are not covered by warranty.

5.2.5 ACCIDENT, COLLISON, THEFT, VANDALISM, RIOT OR OBJECTS STRIKING THE VEHICLE

Work required to repair listed damages, or corrections of failures occurring as a result listed damages are not covered by warranty.

5.2.6 HOURS ALTERATIONS

Repairs where the hours or the date of repair has been misrepresented or altered are not covered by warranty.

Vehicles on which the hour meter reading has been altered. This statement applies to vehicles on which the hour meter has been disconnected or the reading has been altered, and the vehicle’s hours cannot be readily determined.

NOTE – TICO reserves the right to request an ECM image to validate hours reported

5.2.7 ALTERATIONS OR MODIFICATION TO VEHICLE

Failures on units that have been repaired, modified, or altered affecting stability or reliability are not covered by warranty. Correction of failures, which are attributed to deviations in recommended service specifications or tolerances are not covered by warranty.

5.2.8 TAMPERING WITH CONTROL SYSTEMS

Tampering with the vehicle’s electronic or manual engine controls, tampering with the emissions systems, or with other parts that affect these systems will void the warranty for these systems.

5.2.9 CONSEQUENTIAL ITEM CHARGES

Charges including, but not limited to, hotel accommodations, telephone calls, meals, loss of goods, loss of perishables, commercial loss, storage, salaries, earnings, or commissions that result from any vehicle down time are not covered by warranty.

5.2.10 OPERATION IN EXCESS OF STATED CAPABILITIES

Any failure resulting from the vehicle being operated in excess of the factory-rated speed, torque, or horsepower capacities are not covered by warranty.

5.2.11 MISAPPLICATION OF VEHICLE

Failures of any kind that result from using the vehicle in a type of service for which the vehicle was not designed or built, or beyond the Gross Axle Weight Rating (GAWR), Gross Vehicle Weight Rating (GVWR) or Gross Combined Weight Rating (GCWR) are not covered by warranty.

5.2.12 OVERTIME

Premiums for overtime or shift differential are not covered by warranty.

5.2.13 PICK-UP AND DELIVERY

Pick-up and delivery of the customer's vehicle and/or parts for warranty repairs is not covered by warranty.

5.2.14 REPAIRS AT NON-TICO AUTHORIZED REPAIR FACILITIES

Repairs that are not performed by a TICO Dealership, unless performed as an authorized emergency repair or as an authorized sublet repair, are not covered.

5.2.15 PROACTIVE REPAIRS

Repairs where non-defective parts are replaced to modify a vehicle to the latest production design levels, or repairs to parts with no failures are not covered, unless specifically authorized by the Company.

5.2.16 REPEAT REPAIRS

Any repair work that must be repeated or duplicated because of improper diagnosis or inadequate repair work by the Dealer is not covered by warranty. Repeat repairs are subject to chargeback by the Uptime Group.

5.2.17 TEMPORARY REPAIRS

Temporary repairs are not covered by warranty.

5.2.18 STEAM CLEANING OF A FAILED COMPONENT

Vehicle steam cleaning and component steam cleaning time allowances have been included in the Standard Repair Times for those items where steam cleaning is necessary as part of the repair process.

5.2.19 ROAD TESTING

Road Testing is not covered by warranty when performed as part of a quality check of a completed repair, this is considered to be the responsibility of the Dealer Service Management, except for the following conditions:

1. The published SRTs already allow for a supplemental time allowance to perform a pre or post-repair road test in order to verify a customer issue, or correction of a condition.

2. When instructed by the FSM in order to isolate an issue.

3. The Dealer contacts their FSM to discuss a repair which may require a road test, such as a vibration issue. The FSM and the Dealer will work with TICO EDGE to provide a case file number to be submitted on the warranty claim.

5.2.20 TOWING

Reimbursement of towing charges are not covered the Limited Warranty Policy, but in certain instances the FSM can approve towing.

5.2.21 SERVICE CALLS

On-site repairs are authorized in lieu of towing any time it is the more practical or the least costly method of repair. Service calls are not covered by warranty beyond the provisions stipulated in the owner's Limited Warranty Service Policy.

Travel time should is limited 3 hours (to and from) without pre-approval from FSM.

If a selling dealer places a vehicle outside of the 3 hour travel time policy, the servicing dealer has rights to bill the overage back to the selling dealer.

5.2.22 NON-TICO PARTS

Non-TICO parts installed on a vehicle are not covered by warranty. For example, parts installed by dealer, customer, or manufacturers other than TICO, or damage to TICO components caused by installation of non-TICO parts are not covered by Warranty.

5.2.23 REQUIRED PARTS NOT IN STOCK

It is the responsibility of each TICO Dealer to maintain adequate parts inventory to make timely repairs to customer vehicles. Removal of needed parts from a stock truck, to use in a warranty repair, is not covered by warranty.

Any item that is shipped direct to the dealer to cover a “should have stocked” part will be sent at no-charge and non-billable on the warranty case.

Any campaigned item by TICO or a sub-supplier will be billed at no charge, see TSB pertaining to specific campaign.

5.2.24 WARRANTY CANCELLATION – BRANDED TITLE

The Company will cancel the New Vehicle Limited Warranty on any vehicle that has been reported stolen to the police, labeled or branded as “dismantled”, “fire”, “flood”, “junk”, “reconstructed”, or “salvaged”, or that has been determined to be a “total loss” by an insurance company. These include vehicles damaged because of an accident, natural disaster, terrorism, or civil disobedience. Elements of the warranty will also be canceled on the engine, power train, paint or sheet metal due to abuse, misuse, or neglect. The Company will also cancel warranty on any vehicle in which the hour meter has been tampered with and is not showing actual hours.

5.3 ITEMS NOT COVERED BY THE NEW VEHICLE LIMITED WARRANTY

Any extended supplier warranty beyond TICO’s stated warranty coverage must be filed directly with the supplier. Claims should not be filed to TICO.

When filing direct to a Supplier Extended Warranty, the amount of reimbursement is governed by the supplier’s warranty coverage policy, not TICO’s base warranty coverage guidelines.

5.4 WARRANTY COVERAGE ON MODIFICATIONS, ADDITIVES, OR SPECIAL EQUIPMENT

Warranty coverage will not be voided by the installation or use of special equipment, additives or other chemicals designed to improve vehicle performance, non-TICO parts, or by the modification of any part of the vehicle. HOWEVER, IF THE USE OF SUCH DEVICES, MODIFICATIONS OR ADDITIVES CAUSES A FAILURE, THE COST TO REPAIR OR REPLACE THE FAILED PART OR COMPONENT IS NOT REIMBURSABLE.

Changes from original machine index equipment will void warranty for that component (unless directed by TICO.)

5.5 WARRANTY EXCLUSIONS BY GROUP

5.5.1 FRAME OR BUMPER

Limitations or Exclusions – Items not covered by warranty:

1. Coincidental prints / scuffs in frame paint from wood blocks or binding devices used by drive away company are non-warrantable.

2. Frame repairs or modifications are not covered by warranty.

3. Broken or cracked frames due to the following are not covered by warranty:

4. Welding of mounting brackets, supports, or wheelbase alterations.

5. Non-drilled holes in flange or web.

6. Drilled holes in flange.

7. Add-on front or rear frame extensions.

8. Frame damage due to installation or removal of cross members to accommodate specific special equipment.

9. Modifications to frames to allow for variable wheelbase

5.5.2 FRONT AXLE

Limitations or Exclusions – Items not covered by warranty:

1. Weepage – a small amount of wetness or seepage at gasketed surfaces or plugs is considered normal.

2. Seal Leaks - seals are pre-lubricated with grease or oil during the assembly process. This pre-lubrication can moisten or wet the area between the lip of the oil seal and the shaft during operation. If you find the seal area to only be moist this is not a warrantable condition. A warrantable seal leak will appear very wet or visibly drip oil from the seal. Check for a leak path leading from the seal. If you find a leak path and oil drips from the seal this is a warrantable condition.

3. Front end stabilizing devices not included on the line set ticket, or failures resulting from such installation, to include front axle bushings and steering linkage are not covered by warranty.

4. Modifications or failures attributed to same are not warrantable.

5. Front end axle alignment is not warrantable.

6. King pin failures attributable to lack of lube or maintenance are not warrantable.

NOTE – Bearings, wheel ends, axle shafts, steering components, e.g., drag links, arms, tie rods, etc., are covered as a part of standard Basic Warranty only.

5.5.3 SUSPENSION

Limitations or Exclusions – Items not covered by warranty:

1. Suspension modifications are not covered by warranty.

2. Spring breakage or sag due to exceeding Gross Axle Weight Rating (GAWR) or Gross Vehicle Weight Rating (GVWR) is not covered by warranty.

3. Warranty does not cover side-to-side leaning attributable to uneven load distribution.

5.5.4 BRAKES

Limitations or Exclusions – Items not covered by warranty:

1. Brake failure or premature wear attributed to loads in excess of the Gross Axle Weight Rating (GAWR), Gross Vehicle Weight Rating (GVWR) and / or Gross Combined Weight Rating (GCWR), is not covered by warranty.

2. Modifications affecting the original factory brake system are not warrantable.

3. Installation of locking devices is not reimbursable.

4. No reimbursement is allowed for cleaning of brake system or adjustments to the brake pedal linkage and brake shoes / pads beyond the provisions stipulated in the New Vehicle Limited Warranty.

5. Lining and / or pad replacement due to normal wear is not covered.

6. Modifications to upgrade or amended FMVSS-121 are not covered.

7. Due to brake composite changes, brake noise / squeal is not uncommon. Brake noise / squeal is not a warrantable defect as brake performance is not affected.

8. Out of round drums - 90 day coverage only.

5.5.5 STEERING

Limitations or Exclusions – Items not covered by warranty:

1. Reimbursement for service adjustments on the steering system beyond the provisions stipulated in the New Vehicle Limited Warranty is not covered.

2. When special bodies, equipment, or accessories are added to a vehicle front axle alignment and steering wheel alignment is not reimbursable under warranty.

5.5.6 DRIVESHAFTS

Limitations or Exclusions – Items not covered by warranty:

1. Repainting of driveshaft is not warrantable.

2. Failures attributed to modifications affecting length, angularity, or phasing are not covered by warranty.

5.5.7 EXHAUST SYSTEM

Limitations or Exclusions – Items not covered by warranty:

1. Failure of exhaust systems resulting from modifications is not warrantable.

5.5.8 ELECTRICAL SYSTEM

Limitations or Exclusions – Items not covered by warranty:

1. All wipers, lights, etc. installed by a dealer or third party are not covered.

2. Headlamp adjustment required because of special bodies added to incomplete vehicles or because of special equipment installation (modification-conversion) after the vehicle leaves the assembly plant is not reimbursable.

3. Failures resulting from modifications, connections, and/or attachments to the original electrical system are not warrantable.

5.5.8.1 BATTERIES

Limitations or Exclusions – Items not covered by warranty:

1. Batteries that fail due to the use of compounds, additives, or electrolyte other than recommended by TICO, or use of a smaller battery group size than that recommended by the vehicle manufacturer are not covered.

2. Batteries with damaged cases, covers, or battery posts or that fail due to misuse, neglect, improper installation, freezing or failure to perform maintenance service are not covered.

3. Modifications to the original batteries or failures resulting from same, are not warrantable.

5.5.8.2 ADD-ON CAB ELECTRONICS

The basic vehicle warranty coverage applies to all factory-installed cab electronics, as specified in the applicable New Vehicle Limited Warranty. TICO DOES NOT cover damage to, or failure of, a cab electronic component caused by abuse or neglect. The Dealer should inspect the unit for evidence of liquid residue; pry marks or foreign objects which may have caused damage. These type failures are not warrantable.

5.5.9 COOLING SYSTEM

Limitations or Exclusions – Items not covered by warranty:

1. Failures caused by modification or connections to the original factory cooling system.

2. Tightening or repositioning of hose clamps. (Part of regular Preparation and Delivery [P&D])

3. Use of anti-freeze not formulated to TICO specifications.

NOTE – Defective radiators are not to be repaired. When doing warranty work on the cooling system, defective radiators must be replaced. Paint the defective area of the radiator to clarify the location of the defect.

5.5.10 ENGINE

5.5.10.1 ENGINE COOLING SYSTEM

Limitations or Exclusions – Items not covered by warranty:

1. Failures due to inadequate cooling system protection.

2. Failures caused by modification or connections to the original factory cooling system.

3. Installation of add-on equipment which would inhibit the cooling system effectiveness.

4. Installation of add-on air-conditioning systems that result in overheating, water pump bearing failures, etc.

5. Tightening or repositioning of hose clamps. (Part of regular Preparation and Delivery [P&D])

6. Use of anti-freeze not formulated to TICO® specifications.

5.5.10.2 ENGINE – CUMMINS

Limitations or Exclusions – see Cummins Warranty Document

5.5.10.3 ENGINE – PSI

Limitations or Exclusions – see PSI Warranty Document

5.5.10.4 ENGINE – VOLVO PENTA EDL

Limitations or Exclusions – see PSI Warranty Document

5.5.11 TRANSMISSION

Limitations or Exclusions – Items not covered by warranty:

1. Weepage – a small amount of wetness or seepage at gasketed surfaces or plugs is considered normal.

2. Seal Leaks - Seals are pre-lubricated with grease or oil during the assembly process. This pre-lubrication can moisten or wet the area between the lip of the oil seal and the shaft during operation. If you find the seal area to only be moist this is not a warrantable condition. A warrantable seal leak will appear very wet or visibly drip oil from the seal. Check for a leak path leading from the seal. If you find a leak path and oil drips from the seal this is a warrantable condition.

3. Allison automatic transmissions are warranted by the manufacturer and not by TICO. Warranty repairs should be performed by an authorized Allison facility and the warranty claim filed with the Allison distributor.

4. Lubricants and / or oil are not warrantable unless required due to contamination, in conjunction with a covered failure.

5. Modifications to the factory installed components, or damage resulting from same, are not covered by warranty.

6. Failure of / or damage resulting from failure of, any PTO not installed by TICO (as listed on the machine index).

NOTE – Shift lever, shift knob, transmission tower, and attachments are covered by Standard Basic Warranty only.

5.5.12 REAR AXLE

Limitations or Exclusions – Items not covered by warranty:

1. Seal Leaks - Seals are pre-lubricated with grease or oil during the assembly process. This pre-lubrication can moisten or wet the area between the lip of the oil seal and the shaft during operation. If you find the seal area to only be moist this is not a warrantable condition. A warrantable seal leak will appear very wet or visibly drip oil from the seal. Check for a leak path leading from the seal. If you find a leak path and oil drips from the seal this is a warrantable condition.

2. Lubricants and / or oil are not warrantable unless required due to contamination in conjunction with a covered failure.

3. Reimbursement to correct rear axle alignment.

NOTE – Axle shafts, brakes, wheel ends / bearings, controls and attachments are covered by published Standard Basic Warranty only.

5.5.12 FUEL TANKS

Limitations or Exclusions – Items not covered by warranty:

1. Removal of the protective covering from polished tank(s) is not covered by warranty.

2. Failures caused by rust, sediment, algae, or other types of contaminants in the fuel system or fuel tanks are not covered by warranty.

3. Damage to fuel tanks caused by road hazards is not warrantable

5.5.13 CABS

Limitations or Exclusions – Items not covered by warranty:

1. Soft trim that has been worn soiled, torn or cut, burned, punctured, or deteriorated due to use or exposure is not warrantable.

2. Repair or replacement of bright metal finished components damaged by dents, nicks, scratches, or deterioration due to exposure is not warrantable.

3. Glass replacement; cracks, scratches, pitting or chips are not warrantable.

4. Repainting of dents, chips, pitting, nicks, scratches, impact cracks, bird droppings, tree sap, road salt, hail or other “acts of nature” or normal paint deterioration due to exposure or washing chemicals is not reimbursable, nor is painting of any component not normally painted is not warrantable.

5. Reimbursement for door adjustments or the elimination of outside water and air leaks beyond the provisions stipulated in the New Vehicle Limited Warranty are not warrantable.

6. Reimbursement is not allowed for repairs required as the result of improper storage practices.

7. Damages due to collision, accident damage or owner abuse is not warrantable.

5.5.13.1 AIR CONDITIONER/HEATER

The amount of air conditioning refrigerant that can be claimed for an air conditioning system repair is limited to the actual amount used, not to exceed the refrigerant capacity of that vehicle. For occasional situations where “leak checking” is necessary, a small additional amount can be claimed.

5.5.13.2 PERFORATION FROM CORRISION WARRANTY

Perforation corrosion coverage only covers corrosion resulting from rust that starts from the inside and migrates to the exterior surface. It excludes:

1. Corrosion due to accidents or impact damages, chips, dents, nicks, scratches, chemical fallout, pollution damage, gravel or salt damage, and corrosion or surface corrosion.

2. Corrosion due to lack of maintenance.

5.5.13.3 FIBERGLASS REPAIR

Paint and Fiberglass repairs require a specific description of the defect, its location, and repairs required to correct the defect.

Use the following paint defect descriptions where applicable:

1. Cluster – more than one large or small porosity bunched together

2. Craters – dish-like condition of surface after paint

3. Fracture – break completely through the material

4. Gouge – deep scratch effect below plastic surface

5. Orange peel – regular rough surface

6. Porosity – hole in paint surface

7. Scratch – light surface scratch, not below plastic surface

8. Surface craze – light spider web effect due to material

9. Waviness – uniform peaks and valleys, material flow-back

5.5.14 WHEELS

Limitations or Exclusions – Items not covered by warranty:

1. Seal Leaks - Seals are pre-lubricated with grease or oil during the assembly process. This pre-lubrication can moisten or wet the area between the lip of the oil seal and the shaft during operation. If you find the seal area to only be moist this is not a warrantable condition. A

2. warrantable seal leak will appear very wet or visibly drip oil from the seal. Check for a leak path leading from the seal. If you find a leak path and oil drips from the seal this is a warrantable condition.

3. Tires and tubes are warranted by their respective manufacturers.

4. Damage to tires, rims, or wheels caused by road hazards is not warrantable.

NOTE – Proper tire inflation is part of the Preparation and Delivery (P&D) responsibility.

5.6 REPAIR POLICIES

Improper servicing techniques or practices performed in service centers, which affect vehicle safety or reliability, greatly exposes that Dealer to serious liability claims. Some examples include, but are not limited to, improper service operations, or the installation of various attachments or parts which the Dealer performs, or contracts for, through outside suppliers.

When situations arise and a servicing location is in doubt as to proper service procedures or proper installation of an attachment or part that could affect vehicle safety or reliability, the Dealer should contact Field Service Manager (FSM) for the necessary guidance.

6. LABOR TIME POLICIES

6.1 LABOR TIME REPORTING REQUIREMENTS

TICO recognizes there are multiple ways dealers may manage Technician Time Punches, but all are subject to some basic requirements.

BASIC TIME PUNCH REQUIREMENTS

The time record must clearly identify:

1. all employees assigned to the repair; include the identity (clock number) of the technician performing the work

2. Date of repair

3. R.O. Number

4. SRT Operation code or T-time reference

5. Warranty repairs must be clocked separately from other repair types (i.e. customer pay, internals, etc.).

6. TICO SRTs must be used in warranty claim administration.

SRTs must be supported with separate time punches from T-time. This must include stopping and starting times if the repair is interrupted.

1. An individual time punch / record cannot be divided up between multiple repair operations.

2. Time cannot be transferred from one Repair Order to another.

3. SRTs do not require separate time punches from other SRTs, if within the same repair section of the claim.

Exception- T-times that are claimed as SRT’s (drill/tap, wiring repair, etc) require a single identified time punch for each instance of use.

1. Example - Three injectors were replaced in section A. Three separate injectors SRTs may be supported by a single time punch.

SRTs should have a separate time punch from different sections/repairs within the claim.

1. Example - Two unrelated repairs: Section A is a turbo replacement. Section B is a pinion seal replacement. Each claim repair section should have separate SRT time punches, as they are unrelated repairs.

Inability to account for a technician’s time spent performing warranty repairs will result in disallowance of warranty claims.

When a technician fails to punch over onto a new operation, time must be written in on the time documentation and initialed by the technician and service management.

T-TIME PUNCH REQUIREMENTS

T-Time punch requirements include:

1. T-time (actual time) labor operations can only be utilized when there is no published SRT.

2. T-time gains are not allowed.

3. T-time can be used when removal of additional equipment due to the vehicles vocational application is required, but is not included in the SRT procedural steps.

Examples - snow plow, belly plow, emergency vehicle radio equipment, etc.

T-Time cannot be claimed for time spent contacting or communicating with:

1. FSM – Field Service Manager

2. Uptime Group

3. TICO EDGE

4. Technical Bulletin Searches

5. Obtaining a Health Report

A full description of the need for the T-time operation must be listed on the repair order. Service Management must review T-time entries for accuracy and initial all entries.

Failure to properly validate T-time operations or handwritten operations will result in disallowance of affected warranty claims. Accurate time recording is the responsibility of service management.

SPECIFIC REQUIREMENTS BASED ON HOW TIME PUNCHES ARE MANAGED

Manual Time Punch Reporting

Hand Written Time Punches are not allowed. Should a punch time need to be corrected, Service Management should make correction and Sign the Punch Flag on the RO.

Time Flag must indicate Tech Number, RO Number, and Section the Time Punch is applied to.

When T-time is used, service management should add description of T-Time required, sign and date the RO. Technician comments should indicate work performed along with the Time Flag indicating punch used for T-Time.

Electronic Time Reporting

Technician should punch on correct RO and Section.

When T-time is used, service management should add description of T-Time required, sign and date the RO. Technician comments should indicate work performed along with on and off times/date to link back to the electronic time punch used for T-Time.

Paperless Time Reporting

Service Management should add T-Time Labor Line and add comments in RO to indicate T-Time Required. Management should initial and date entry.

If Business System Allows, the technician should punch on the added T-Time Labor line and add comments on work performed.

If the Business System does not allow the technician to punch on the added T-Time Labor line, he should then punch, add his comments to work performed for t-time along with the on and off time/date in the business system to link back to the actual time punch.

NOTE – Unexplainable, undocumented time punches will not be allowed to be used to support T-Time Requests.

6.2 LABOR TIME REPORTING REQUIREMENTS

A SRT has been developed for use in warranty claims where a photo was taken for diagnostic, repair, or pre-approval instruction, only when directed by TICO.

Requirements:

1. Requires the Frame Number and Date to be visible in each photo (See Sample Photo Below).

2. Will only be paid if instructed by a TICO Representative or is required as part of a diagnostic, repair or pre-approval instruction

3. Photos must be attached to any warranty claim that has this SRT charged out on it.

4. Only allowed one Photo SRT per Repair Visit if above criteria is met.

5. Photo must clearly illustrate what the request was asking for. If the photos are not clear or useful, the SRT will not be paid.

NOTE – If photos are already attached in a tech case file, refer to that case file number in the 3 Cs of your warranty claim, this will be accepted in lieu of attaching a 2nd set of photos into TICO EDGE)

6.3 NON-REIMBURSABLE LABOR OPERATIONS

PDI LABOR

Operations included as part of dealer performed vehicle pre-delivery inspections are not reimbursable under warranty. These items include (but are not limited to):

1. Inspections

2. Adjustments

3. Alignments

4. Vehicle cleanup

5. Adding oils

6. Adding lubricants, other fluids (except refrigerant)

7. Tire inflation

LABOR PERFORMED WITH NO REPORTED WARRANTABLE FAILURE

Labor performed with no reported warrantable repair is not reimbursable under warranty

1. Vehicle in Warranty Period

2. Active Fault Code

3. Health Report prior to Repair, showing Active Fault Codes

4. Review of related Technical Service Bulletins

5. Review of related Fault Code Action Plans

6. If necessary, contacting Uptime Group or Field Service Manager for additional assistance.

7. When outcome is that there is No Further Diagnostics / Repair or Tech Service Requests to Clear Codes and Release.

How to File for Reimbursement

1. Health Report showing Active Fault Codes.

2. Explanation in claim of Active Fault Code, and no further Diag / Repair.

Warranty Coding: Operation Code to Component identified by the Active Code.

Warranty SRT: Use applicable SRT Diagnostics for Active Code present, or if no SRT’s exists, the proper documented T-Time.

Warranty Exception: If codes are cleared and return during test drive or within 48 hours after being returned to customer, then there should not be a separate claim filed. This diagnosis time should be included in the subsequent repair.

OVERLAPPING LABOR

Overlapping labor occurs when two operations claimed include duplicate repair steps, and is not reimbursable. The overlapping labor amount must be deducted from the second operation; the remaining labor amount of the second operation must be claimed as actual time (T-time). T-time must be used to claim the balance of time, since the published SRT time allowances cannot be changed.

6.4 LABOR TIME REPORTING REQUIREMENTS

Following this process, TICO will reimburse its dealers for warranty repairs at the same average retail labor rate that can be demonstrated as currently being charged to the dealer's customers.

Dealer Requirements

1. Dealers are not required to submit a labor rate request if they are satisfied with their current rate. Current Rates will automatically transfer to the next year.

2. Dealers wanting to submit for a labor rate increase will be required to submit a request for each location they want to increase.

3. Dealers will be allowed one (1) labor rate increase per year (365 days), per dealer location.

4. Dealers are required to demonstrate that the new requested rate is already being charged to their customers.

Required Information

1. Completed Competitive Market Analysis

2. Completed Customer Pay Repair Order Analysis

   1. 5 Repair Orders from Dealer’s Strategic Accounts

   2. Remove Omitted Items.

NOTE: These items must still be listed on the Customer Pay Analysis and Reason for Omission provided.

• There must be a minimum 30 remaining Customer Pay Repair Orders to support requested rate. If you need to provide more consecutive Repair Orders to meet the minimum requirement please do so.

  • Factor the average Labor Rate of these Repair Orders by taking total labor dollars billed divided by labor hours, i.e. $400/4=$100 per hour.

  • Labor Hours and Dollars must be provided in analysis.

1. Repair Orders are not required to be attached, but should be available if requested or reviewed during an audit.

2. Dealer Executive Management Approval

How to Submit

1. The Labor Rate Increase Form

2. Fill Out Labor Rate Increase Form

3. Attach Customer Pay RO Analysis Form

4. Create and EDGE Case with the OP Code “LBR01 – Labor Rate Increase”

5. When submitted, Dealer will be provided a Case File Number

6. If approved you will receive the amount approved and an effective date

7. If denied, you will receive a denial with explanation

Labor Rate will become effective within 30 days of approval.

7. SERVICE PARTS WARRANTY

7.1 SERVICE PARTS WARRANTY STATEMENT

TICO warrants to its Dealers that it will repair or replace any Service part (excludes maintenance parts). PDC sourced parts are covered for 1 year unlimited hours.

Service Parts Warranty applies only to the original retail purchaser of the part.

1. Service Parts Warranty starts on the date of sale if sold over the counter, or the repair completion date if installed by an TICO Service Location.

2. Labor is only covered when service parts are installed by an authorized TICO Service Location.

3. Approved TICO parts installed by a contracted TICO servicing location on TICO vehicles, which are still within the vehicle warranty period, will receive warranty coverage for the balance of the vehicle warranty for that component.

4. Parts furnished in fulfillment of the TICO Service Parts Warranty – sold over the counter or installed by a contracted TICO servicing location will receive the balance of the published warranty for the original purchased service part.

5. The Dealer agrees that only genuine TICO parts will be used in the repair of TICO vehicles, or fulfillment of Service Part Warranty, during the warranty period.

6. The Dealer agrees that he will not sell (or offer for sale), for repair or use on TICO vehicles, any parts designated as “Genuine TICO Service Parts”, if those parts are not manufactured by or for the Company, or approved by the Company and designed for use on TICO vehicles.

7. This Service Part Warranty coverage applies regardless of the make of vehicle in which the part was installed.

8. Items contained in separate Aftermarket Catalogs are warranted by their respective manufacturers, and are not covered by this warranty.

This warranty is IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, all representations to the user/purchaser and all other obligations or liabilities including liability for incidental and consequential damages, on the part of the Company or the seller. No person is authorized to give any other warranties or to assume any other liabilities on the Company's behalf unless made or assumed in writing by the Company. Nothing herein shall limit or reduce the coverage of any new vehicle warranty issued by the Company. This warranty does not cover parts which fail due to abuse, misuse, neglect, alteration, or accident, or which have been improperly lubricated or repaired. Parts that are cleaned, adjusted, or replaced as a part of normal maintenance, i.e., oil, filters, etc., and parts which fail due to progressive damage, are not covered by this warranty.

7.2 SERVICE PARTS WARRANTY STATEMENT

Dealership performed repair:

When a service part is presented to the Dealer as defective, the Dealer must:

1. Obtain a copy of the original sale document

2. Confirm the part is within the service parts warranty period

3. Determine if the failure was caused by a defect in material or workmanship

NOTE - Failures resulting from customer workmanship, abuse, or negligence are not covered by this warranty.

After validation of the above items, the dealer will:

1. Repair or replace the part for the customer with the same part originally purchased or a comparable part if the original purchased part is no longer available.

2. In the event the customer requests a part of greater value, the cost difference between the failed part and the upgraded part must be charged to the customer.

Over the counter part:

When a service part is presented to the Dealer as defective, the Dealer must:

1. Obtain a copy of the original sale document

2. Confirm the part is within the service parts warranty period

3. Dealer is responsible to inspect for visual damage or mis-installation issues.

After validation of the above items, the dealer will:

1. Replace the part for the customer with the same part originally purchased or a comparable part if the original purchased part is no longer available.

2. In the event the customer requests a part of greater value, the cost difference between the failed part and the upgraded part must be charged to the customer.

Parts returned for over the counter service parts claim will not be charged back to the dealer for:

1. No trouble found.

Over the counter service part claims may be charged back for:

1. Parts not returned

2. Wrong part returned

3. Obvious visual damage

Note- It is still required to obtain prior approval from the supplier of the part when required.

7.3 COMPETITIVE VEHICLE LABOR REIMBURSEMENT

Labor reimbursement amounts for replacing or repairing a part installed in a competitive make vehicle, shall not exceed the amount that would have been allowed had the part been installed in a comparable TICO vehicle.

7.4 PARTS PACKAGED INCORRECTLY, DAMAGED, OR MISSING

Claims initiated for the following reasons must be submitted to the PDC as a Parts Policy:

1. Claims for damaged parts caused by internal packaging (i.e. staple through head gasket, or fuel tank damaged due to improper crating).

2. Claims for parts shipped in error or ordered in error.

3. Claims for incorrect part received (wrong part).

4. Claims for parts damaged during shipping or storage while in the carriers possession (i.e. external damage to shipping box or crate such as crushed or water soaked) should be filed back to the carrier. If the damage is concealed damage, not due to a carrier issue, file a PDC SIE claim.

Parts Missing From a Carton/Box/Kit:

1. When the cost to replenish the missing part(s) is 50% or less than the original part cost, a claim should be filed for the replacement of the missing part(s) from a package / kit / assembly.

2. When the cost to replenish the missing part(s) is more than 50% of the original part cost, file a PDC claim, further instructions will be provided by the PDC.

7.5 PARTS WARRANTY LIMITATIONS

MAINTENANCE PARTS

Parts that are cleaned, adjusted, or replaced as part of normal maintenance do not receive any Service Parts warranty coverage.

These parts include (but not limited to) the following:

1. Fluids

2. Filters

3. Wiper blades

4. Belts

5. Fuses

6. Brake linings/pads

7. Clutch brakes

8. Bulbs

7.5.1 PROGRESSIVE DAMAGE

This warranty is for the defective part only; progressive damage is not covered by this warranty.

7.5.2 TOWING

The Parts Warranty does not cover towing expense or travel expense to or from a job site.

7.5.3 FREIGHT

Freight expenses are not reimbursable under parts warranty.

7.5.4 REPAIR VERSUS REPLACEMENT

Parts that fail during the warranty period may be repaired, rather than replaced, provided the cost of parts and labor to make such a repair does not exceed 50% of the Dealer-net cost of the part. Labor for (R&R) removal and reinstallation of parts sold ‘over the counter’ is not reimbursable. If the part was originally purchased over the counter and installed by the customer, the expense to remove and replace the part is not reimbursable and cannot be calculated as part of the 50% repair cost mentioned above.

7.6 SERVICE PARTS BATTERIES

Service parts batteries, are warranted for coverages per specific part number warranty coverage found in Parts Catalog on-line or Parts Policy Letters.

The battery warranty above does not apply to the recharging of discharged batteries, the use of rental batteries or usage of a smaller group size than that recommended by the vehicle manufacturer. Batteries that fail because they were not used in the application for which they were designed or from the use of additives, or electrolyte other than recommended by TICO are not covered by this warranty.

1. This warranty policy does not apply to batteries with damaged containers, covers, or that fail due to misuse, neglect, improper installation, freezing, or failure to perform maintenance. Down time, inconvenience, consequential damages or loss of use of the vehicle are not covered.

2. Use of the MidTronics EXP-1000 HD tester for battery diagnostics is a required procedure prior to filing warranty claims for confirmed defective batteries. After testing, the tool provides a pass-fail indicator. The tester also displays a fail code for defective batteries. Battery claims require the failure code be submitted within the 3 C’s section of the warranty claim in order to receive warranty reimbursement.

7.7 SUPPLIER WARRANTIES

Some suppliers publish warranties applicable to their products that are more extensive than our standard warranty. These are warranties of the respective manufacturers and not warranties of TICO.

TICO will not administer suppliers' part warranties. These claims are filed directly to the supplier.

When filing direct to a Supplier Extended Parts Warranty, the amount of reimbursement is governed by the supplier’s warranty parts coverage policy, not TICO’s parts warranty coverage guidelines.

8. WARRANTY RECORD RETENTION

Dealers may use either a paper repair order (RO) system, or an electronic RO system; regardless of which system is chosen, the RO and all supporting documents must be saved and retrieved when requested.

All supporting warranty claim documents are to be retained and available for:

1. One year

2. Safety Recall for five years

3. Or in accordance with local or state law, if longer

NOTE – Always follow local and state laws, as required.

8.1 DOCUMENTS TO RETAIN

All documents that support a warranty claim should be retained.

The following are examples of documents used to substantiate claims, including but not limited to:

1. Basic journals, ledgers, and records.

2. Service copy (hard copy) of claim.

3. Related repair orders – ‘hard’ copy and office copy.

4. Payroll records, including time tickets, or time documentation, and employment records.

5. Records supporting the dealership's parts inventory control system.

6. Supplier invoices.

7. Preparation and Delivery (P&D) service records.

8. Service Portal VIN Summary page from the time of claim write-up.

9. Copy of original, customer signed repair order.

10. Accounting copy of all claims submitted.

11. Diagnostic equipment printouts Engine and/or Transmission Diagnosis Sheet required.

12. Bill of Lading / Delivery Document.

13. Body shop estimate (copy).

14. Copies of computer-generated claims.

15. Dealer Core Receipt documents.

16. Original invoices of tow bills, transportation charge receipts, or any Outside charge pertaining to a claim and record of payment.

17. PDC invoices showing freight charges pertaining to truck down parts shipments.

18. Internal dealership repair orders.

19. Maintenance service repair orders (copy).

20. New vehicle factory invoices.

21. Service Portal VIN Summary page printout for each repair visit.

22. Owner refund repair invoice and Customer-paid repair orders.

23. Owner invoices for new and used vehicle sales.

24. Delivery Checklists. (PDI forms)

25. Service installed invoice / over-the-counter parts receipt.

8.2 DOCUMENT RETRIEVAL

Complete vehicle service history documents must be provided within seven (7) business day of a request.

9. DEALER REVIEW

To ensure that a satisfactory level of Dealer performance is maintained, TICO may elect to review a Dealer's documents and records. “Certified Uptime” program provides authority for such reviews.

The Dealer agrees to cooperate with TICO by making available those records which are necessary to adequately analyze the Dealer's performance. A copy of all repair claims requested must be made available within 24 hours of notification.

9.1 REQUIRED DOCUMENTS TO RETAIN

Although TICO may have accepted a warranty claim for payment based on information presented at the time of claim review, warranty adjustments to a claim, or portion of a claim, may be made.

Charge-backs can be made for claims that are duplicates, unsubstantiated, or which do not meet the requirements stated in this manual. Dealers must be cognizant of their obligations with respect to their warranty repair and service requirements as specified in the Dealer Sales/Maintenance Agreement.

1. Misrepresented Claim: Examples such as: Vehicle mileage misrepresentation or evidence of mileage roll back. Incorrect DTU or failure dates are entered to circumvent the time limits of the warranty coverage. Completion dates are misrepresented on the claim to evade the 60-day claim submission requirement. Invalid vehicle VIN or Customer Name entered to show a current-production vehicle within the coverage period. Lack of identification of technician making repair or changes to the technician story that affect the credibility of the failure.

2. Falsified Supporting Documents: Time documentation, vendor invoices, purchase orders, or any supporting document that has been physically altered to agree with the claim as submitted or does not meet the requirements stated in this manual. Submitting Non-OEM part claimed as genuine. Duplicate billing for repairs to both TICO and the customer. Duplicate claim submission to TICO.

3. Unsubstantiated Time Documentation: When technician time is not properly documented as stated in this manual.

4. Work not performed: Results when; physical inspections of the claimed repair cannot be verified, when the customer denies having the vehicle repaired as claimed, parts usage does not support claim submission, failed parts are not available when requested, or dealer employee admission that the repairs were not performed.

5. Habit Type Repairs: Repairs or inspections by the servicing dealer that are not common to the vehicle/application, do not identify a warrantable defect, or are performed proactively.

6. Not TICO Responsibility: Items that are determined to be routine maintenance, Non-TICO parts, dealer installed equipment, and special equipment installed by body companies.

7. Come-Back or Repeat Repairs: Poor workmanship or very obvious misdiagnosis/ineffective repairs were responsible for the second repair.

8. Excessive Charges: Any unsupported or unnecessary charges that are not required for repair being performed.

9. Failure to return requested parts to PRC: Required parts are not returned to the PRC within the time period allowed.

10. Omitted Customer Signature: Customer authorization signature not on repair order or add-on sections.

NOTE – The above list is not intended to be all-inclusive.

The submission of false or fraudulent claims to the Company violates your Dealer Sales / Maintenance Agreement and is a sufficiently substantial breach of faith between TICO and the Dealer to warrant termination.

10. ACTS/LAWS RELATE TO WARRANTY

10.1 MAGNUSON - MOSS ACT (U.S. ONLY)

The following is the TICO policy regarding the Magnuson-Moss Act:

The Act itself applies only to ‘consumer products.’ A consumer product is an article ‘which is normally used for personal, family, or household purposes.

The only category of consumer products marketed by TICO are the so-called ‘merchandising items’ that are sold for personal use, e.g., CB radio, AM / FM Stereo Radio w / cassette player or CD player, batteries, etc.

In order for the regulations that have been issued by the Federal Trade Commission (FTC) to be applicable, a written warranty to the consumer must exist in connection with the consumer product purchased. In the absence of a written warranty, the Federal Trade Commission regulations simply do not apply. Neither the law nor the regulations require that a written warranty be offered.

TICO considers the following circumstances in relationship to the categories of items covered by these rules are limited to the following:

1. New Service Parts — New service parts are not covered by the Act or the regulations because no written warranty is extended to the consumer in connection with the sale of such products. New service parts are warranted to the Dealer as outlined in Administrative Policies under Parts Warranties Policies.

2. Merchandising Items — Products falling within this category are subject to the Act only if they can be ‘used for personal, family or household purposes’ in the normal course. This means that an item such as a radio or a battery, which is suitable for installation in a passenger car, is covered. Also, products such as a CB radio, AM / FM Stereo Radio w / cassette player or CD player, batteries, etc., which are used as personal property by truck drivers, may be covered. On the other hand, technician's tools are not normally purchased for personal use, but are really capital goods that are not covered by the Act. Regardless of whether or not a merchandising item may properly be considered a consumer product, neither the law nor the regulations apply unless the manufacturer extends a written warranty to the ultimate purchaser. Thus, if a supplier extends a written warranty on its CB radios, or on its batteries suitable for installation in passenger cars, the Act and the regulations do apply. For this reason, the supplier is now packing its written warranty with each new battery that conceivably could fall within the consumer products classification. If the manufacturer of the merchandising article places its written warranty either on the carton or as a tag on each unit, the Federal Trade Commission regulations are met.

TICO stresses to the Dealer the importance of providing a copy of the owner's Limited Warranty Service Policy to the purchaser at the time of sale.

10.2 UNITED STATES NATIONAL TRAFFIC AND MOTOR VEHICLE SAFETY ACT OF 1966, AND IN CANADA, THE MOTOR VEHICLE SAFETY ACT OF JANUARY 1, 1971

In the United States, the National Traffic and Motor Vehicle Safety Act of 1966, and in Canada, the Motor Vehicle Safety Act of January 1, 1971, with amendments, cover stringent requirements in the final phase of manufacture of vehicles, as well as placing obligations on Dealers. Compliance with these laws is mandatory, and severe penalties can be imposed upon a Dealer by the government for violations.

10.3 TREAD ACT

The TREAD Act (Transportation Recall Enhancement, Accountability, and Documentation) requires manufacturers to reimburse customers for certain expenditures that are directly related to a safety or noncompliance recall, if the customer incurred the expense prior to the implementation of the recall. The pre- notification repairs must have occurred between the start date and end date specified for reimbursement in the customer letter.

The Customer letter will instruct the owner to contact the Dealer for reimbursement, or if they prefer, they may submit a claim to TICO directly. In either case the customer must furnish the original invoice and proof

of payment (cancelled check, copy of money order or paid receipt) covering the pre-notification repairs. If the owner chooses to contact the Dealer for reimbursement, it is the Dealer’s responsibility to review the invoice and determine whether the repairs detailed on the customer invoice meet guidelines a. through d. below for reimbursement as follows:

1. The build date of the vehicle must fall within the build date range of the recall population.

2. Repair date is between start date and end date for reimbursement specified in the customer letter.

3. An original invoice and proof of customer payment was provided.

4. The repairs detailed on the invoice addressed the defect or noncompliance and were similar to the recall remedy.

5. The customer will be denied reimbursement only under the following conditions:

6. The costs incurred were within the normal or extended warranty period.

7. The repair was not the same or similar to the recall remedy.

8. The repair did not attempt to address the defect or noncompliance that led to the recall.

9. The repair was not reasonably necessary to correct the defect or noncompliance.

If the pre-notification repairs meet guidelines a through d, above the customer is entitled to reimbursement for costs incurred for parts and labor to correct the defect or noncompliance. The amount of reimbursement will be based on the amount paid by the customer for the cost of parts for the remedy, plus applicable labor.Costs for parts will be limited to our list retail price for authorized parts. Any taxes or disposal of waste charges will be included in the reimbursement.

Dealers will administer customer reimbursement through the Warranty system. After the Warranty Administration Group (WAG) approves the claim, the Dealer will issue a check to credit the customer. The customer must be reimbursed within 60 days after the claim was presented.

If the customer fails to meet the conditions for reimbursement the Dealer must inform the customer in writing within 60 days after the claim was presented that they are not eligible for reimbursement for the pre-notification repairs. This notification must state in a clear, concise manner why the claim was denied based on one of the conditions listed. For instance, the Dealer should explain the difference between the customer remedy and the recall remedy and why the customer-initiated remedy does not address the defect or noncompliance.

Should the claim be incomplete, the Dealer must return it to the customer within 60 days after the claim was presented and the customer advised of the documentation needed. The customer must be offered an opportunity to resubmit the claim with complete documentation.

Should an accident be involved with the claim, the Dealer MUST refer the claim to the Uptime Group for action by calling 1-800-346-4429.

NOTE – The vehicle must have the recall performed regardless of whether the customer pre-notification claim was approved or denied. If the prior repairs did not meet the requirements specified in the recall notification, the Dealer must complete the recall as specified in the letter.