“To level the playing field between Dealers & Manufacturers”

“To level the playing field between Dealers & Manufacturers”

Jordan JankowskiDirector of Operations

April 20, 2021

© 2016 Armatus Dealer Uplift, All Rights Reserved

Ø Over 8,000 Approvals in 50 States for 29 different manufacturers

Ø Work with 7 of the top 10 Dealer Groups in the country

Ø 43 people with over 800 years of combined automotive industry experience dedicated SOLEY to Retail Warranty Reimbursement

Ø Industry’s ONLY “True” Optimization software

Ø Assisted with legislation for 13 warranty laws

Ø Endorsed/Licensed by 16 State Dealer Associations

A Little About Us


Retail Warranty Reimbursement

Virginia Success


180 Virginia Dealers (~40% of the state)


Manufacturer

Uplift Requests (Shipped

and In Process)

Acura 6 Audi 6 BMW 5

Chrysler 25 Ford 28 GM 72

Honda 23 Hyundai 18 Infiniti 3

Jaguar/Land Rover 5 Kia 18

Mazda 8 Mini 3

Mitsubishi 1 Nissan 22

Porsche 3 Subaru 29 Toyota 1 Volvo 1 VW 16

TOTAL 293


Grand Total $24,141,816

Labor $66,564Per Store

Parts $97,944Per Store


Overview of the Retail Warranty Landscape


Customer Pay “Repair” Rate

FOR

Warranty-like Repairs


40%

MSRP (Not 67%)

Neither of these are “Retail”


Increase Warranty Parts

Gross Profit

MSRP CP Pricing: 50%

Matrix CP Pricing: 100%


How to Calculate Parts Uplift

Current Post-Submission Uplift

Monthly Parts Cost 20,000$ 20,000$

Mark-up 40.00% 80.00%

Monthly Sales 28,000$ 36,000$ 8,000$

Monthly Gross Profit 8,000$ 16,000$ 8,000$

Sample Dealer

Warranty Parts Mark-up Analysis

Projected Annual Uplift

Based on Sample Months

$96,000


CPI Agreement

Factory Submission

Neither of these are “Retail”


Warranty + PDI HoursX

“Repair” ELR(As defined in the statute)


Do your dealership personnel have



} Have you evaluated the difference between an OEM & Statutory submission?

} Do you have the ability to verify that you are submitting for the best rate?

} Do you have a process in place to deal with an OEM rebuttal or turn-down?


Law Manufacturer Optimization

© 2016 Armatus Dealer Uplift, All Rights Reserved 9


Ø Retail Reimbursable: Recall or warranty parts, service an diagnostic

Ø Parts Formula: 100 consecutive ROs or all ROs over a 90-day period, whichever occurs first

Ø Exclusions: menu-priced parts or services, group discounts, special event discounts, and special event promotions.

Ø Frequency: The statute is silent on frequency. The standard is to submit once per year on anniversary date of last increase.


Ø Zero cost parts: Reimbursed at Retail Rate

Ø Approval Timeframe: None

Ø Reasonableness: “unless the amounts are not reasonable”

Ø Dispute: If there is a dispute between factory…either party may petition the Commissioner in writing, within 30 days after either party has given written notice of the dispute to the other, for a hearing

Ø Surcharge: Specifically prohibited in the law


Will approve with varying interpretations of the law

Will pay retail

Historically will only pay MSRP – Not Retail


Ø Specific protocols for “qualifying” or “allowable” repairs

Ø Varying submission format requirements

Ø Application of customer discounts

Ø Changing of the rules

Ø Use of “Reasonableness” language

Ø Retribution is virtually non-existent11

Manufactures’ Nuances



Best Possible Result

Factory

LawData

6 Months of Service History(1,000 ROs for 100 Qualifying)Interpretation by Manufacturer

Rules: Written & Unwritten


Non-Franchise Vehicles

Non-Warranty Like Work

Non-OEM Parts

Statutory Exclusions

Factory Rules

Optimized Results

Customer Pay Repairs


15

1,187 Possible Ranges of 100 qualified repair orders

747 total repair orders




Customer Pay Analysis

Approved at 80% - 21% Improvement – Additional $48K Annually



REPAIR ORDERS

OPEN/VOIDED RO REPORT

CHART OF ACCOUNTS

ANALYTICAL REPORT

ELECTRONIC DATA./MEDIA

STATE STATUTE

OVERVIEW DOCUMENT (METHODOLOGY)

DECLARATION LETTER

20

What’s The End Product?


Ø Dedicated Resources - 43 folks; it’s all we do

Ø Turnkey Program – Limited access to data and sign a letter

Ø True Optimization – Unique Proprietary Software

Ø Speed – No one can produce a submission in less time

Ø Data Governance – Your data is safe with us

Ø Credibility – VADA Endorsed

Why Armatus?


22

Leveling the playing field

[email protected]

Jordan [email protected]

mailto:[email protected]

Documents

“To level the playing field between Dealers & Manufacturers”