DEALER SALES LETTER, U.S. NO. 825, CANADA NO. 900 SUBJECT: 2017 SERVICE EXCELLENCE PROGRAM / 2017 WARRANTY UPLIFT RATES
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1 April 5, 2017 DEALER SALES LETTER, U.S. NO. 825, CANADA NO. 900 NEW HOLLAND DEALERS, NORTH AMERICA SUBJECT: 2017 SERVICE EXCELLENCE PROGRAM / 2017 WARRANTY UPLIFT RATES As announced in a prior dealer communication (Dealer Sales Letter, U.S. No. 823, Canada No. 898), the 2017 onpoint! Program has been discontinued. As a result, we are pleased to announce the return of the Service Excellence Program. The 2017 Service Excellence Program will use the same criteria intended as the former OnPoint program service section, which was presented at the New Holland Product Update Meeting at the end of February. It will continue to be a point based program, with the evaluation now assessing the location level rather than the dealer complex level. The 2017 Service Excellence program will determine eligibility to receive one of the two premium warranty reimbursement levels beginning in March Your New Holland Aftersales Business Manager will be conducting evaluations in the winter of 2017 in order to set your warranty reimbursement rates for The warranty reimbursement levels remain unchanged: Points Parts at Dnet Warranty Labor Above % 110% 170 to % * 105% * Below % 95% *default level for new dealers during the year of establishment plus one additional year. If you have questions about the process, please contact your New Holland Aftersales Business Manager. Best Regards, Paul Hatfield Director of Aftersales New Holland, North America Sebastien Cote Aftersales District Manager New Holland, Canada Attachment CNH Industrial America LLC 500 Diller Avenue, P.O. Box 1895 New Holland, PA Telephone: (717)
2 Summary of the 2017 Service Excellence Program: Criteria Name Points 1.01 Service Manager Service Manager Planning PIP Absorption DAR Completion WLL Forms Service Training Learning Request Program Service Manager Training Warranty Administration Training Participation in New Holland Product Update Meeting Service Training Technician Level Service Training Technician Level Dedicated ASIST Terminal Datar Tool Dynamometer EST in Each Service Vehicle Marketing Service 5 Bonus Section 1.18 Flat Rate Job Pricing Process Purchased Protection Plan (PPP) Promotion New Holland certified Master Techs Structured Technician Recruitment Program New Holland Identified Uniforms for Techs 5
3 2017 Service Excellence Program Details: Base program: All following functions are under the responsibility and implemented by a dedicated Service Manager (5 points): Supervision of dealership service personnel Warranty administration Service marketing Communication with New Holland service personnel Exception: If the total number of parts and service employees is 6 or fewer, a joint parts/service manager is acceptable Service Manager manages (5 points): Lost sales and takes corrective action Sales objectives and budgets through departmental profitability Dealership achieves a PIP completion rate of the following: The timeframe for this requirement is December 1st to November 30th RATE POINTS < 85% 0 85% - 90% 4 91% - 93% 8 94% - 97% 12 98% - 99% % Dealership achieves dealer absorption for Parts & Service: The November absorption number from BMS will be used to determine the score for this requirement. RATE POINTS < 55% 0 55% - 60% 4 61% - 65% 8 66% - 70% 12 71% - 75% 16 > 75% Dealer must complete 70% of their DARs within 45 days of the units invoiced date (15 The timeframe for this requirement will be from January to the end of November Dealership has a WLL (Warranty Limited Liability) form completed and on file at the dealership and submitted to CNH Industrial Capital for every unit sold during past rolling 12 months (20
4 1.07- Dealer participates in Learning Request Program ( Service Managers must have completed the following instructor led training courses (10 Parts and Service Manager Level I Training (USPMPSM119EN) & Parts and Service Manager Level II Training (USSMSRV209EN) or Parts & Service Manager - Level 100 (USPMPSM119EN) & Service Management Level 200 (USAKALL209EN) New service managers must be certified within12 months of hire date and have the proper Service Manager role in their Dealer Portal profiles to qualify Warranty Administrator must complete Warranty Administration Certification (5 Warranty Administrators must be certified within 12 months of hire date and have the proper Service Administration / Service Writer or Warranty Administration role in their Dealer Portal profiles to qualify Dealer participates in New Holland Product Update Meeting ( All Service Technicians complete Level One Certification (20 All L1 certified technicians must have the Service Technician role in their profiles to qualify. New technicians must complete Level One within 12 months of hire date By dealer Location, at least 55% of the dealership s technicians servicing New Holland products (minimum of 1 tech) must have achieved and maintained Level 2 Professional Certification status on at least one (1) of the main products the dealer sells. All L2 certified technicians must have the Service Technician role in their profiles to qualify % OF TECHS POINTS < 55% 0 55% - 60% 4 61% - 65% 8 66% - 70% 12 71% - 75% 16 > 75% A PC terminal separate from that of the Service Manager must be in the service department and dedicated to use by technicians for usage of ASIST and etim ( Dealer has a full DATAR tool (with flow meter) in the dealer complex available to any dealer location within 24 hours ( Dealer has access to a dynamometer sufficient to troubleshoot tractors of the highest horsepower the dealer sells with the exception of Articulated Tractors ( All service vehicles are equipped with a dedicated Electronic Service Tool (5
5 1.17- New Holland Service Marketing: Dealer regularly carries out a minimum of 3 out of the 6 accepted/prescribed practices during the past 12 months (5 points): Service Department utilizes a written machine inspection program that is filed with the customer work order. Dealer conducts at least one service clinic for customers during the calendar year. Dealer actively uses a profile system that includes a minimum of 50 service customers/prospects. At least quarterly, dealer promotes extended warranty through direct mail, in-store displays and advertising. Dealer schedules regular service promotions through direct mail, fliers and advertisements. All customers contacted after service work (that exceeds $1000 US) is completed by the dealership to ensure satisfaction. Bonus Section: Dealer has fully implemented Flat Rate Job Pricing process ( Dealer has formal sales process which presents Purchased Protection Plan (PPP) options at time of sale and has customers sign formal letter of acceptance/declination ( At least 33% of the dealership s technicians servicing New Holland products (minimum of 1 tech) must have achieved and maintained Level 3 Master Certification status on at least one (1) of the main products the dealer sells (5 All L3 certified technicians must have the Service Technician role in their profiles to qualify Dealer is engaged in a structured Technician Training or Recruitment Program (5 Dealership employs a dedicated recruitment manager or an employee with technician recruitment responsibility. Dealership has a written technician recruitment plan and participates in at least one event with the goal of technician recruitment (High Schools, Vocational Ag Schools etc.). Dealership promotes its technicians accomplishments within the dealership and to customers Workshop personnel wear approved New Holland-identified uniforms (5 Dealership/employee name optional. NH logo is, at a minimum, the same size as other logos. Within markets that specify a specific uniform, dealer meets the requirement. Uniforms are clean, not faded or torn.
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