Citing issues of program complexity and customers not being satisfied, Carlite by Visteon has decided to discontinue the C.A.R.S. Dealer Warranty Program, effective July 1, 2000. Other C.A.R.S. programs, including the auctions and the certification requirements, continue to be in force.

Installers and Wholesalers alike have had problems with the program since the beginning, including the cumbersome procedure, lack of fair profits, as well as the manufacturer so closely tied to the installation business.

Related Links:
CARS Website
CARS Information

June 16, 2000

To: All CARS Wholesale and Retail Vendors

From: CARS Program Management

Subject: CARS Warranty Program

PURPOSE

This letter is to advise you that effective July 1, 2000 the CARS Dealer Warranty Program for all Ford, Lincoln, and Mercury glass warranty is being discontinued.

WHY IS THE PROGRAM BEING DISCONTINUED?

The FCSD/CARS Glass Program was intended to meet several goals:

• Maintain or improve the quality and safety of glass replacements by assuring the use of OEM (Carlite) glass and the use of OEM approved procedures and materials;
• Improve customer satisfaction by improving the Quality and consistency of glass repairs;
• Help Ford, Lincoln, and Mercury dealers retain customers;
• Provide warranty cost saving to Ford by providing consistent, competitive pricing.

While we feel that some of the above goals were met, others were not, particularly customer satisfaction {both dealers and vehicle owners). The primary issues were program complexity, call center concerns, and weaknesses in distribution of Carlite parts and timeliness of delivery, among other issues.

HOW DOES THIS CHANGE AFFECT YOU?

Effective with glass repairs and replacements starting July 1, 2000 dealers will call their preferred glass installers for service as they did before the program started. Installers will be able to get the Carlite parts they need from any wholesaler that supplies them, or may supply Carlite parts from their own inventories if so desired. Installers will invoice dealers directly for all warranty glass repairs and replacements, and will be paid by the dealers.

All amounts owed to installers and wholesalers from jobs completed under the CARS Warranty Program will be paid by CARS. If payment questions arise, they should be directed to the CARS call center at l-877-367-3452, prompt 3 or 4. Normal timing for payments win be on the order of 4 - 5 weeks from job completion. Use of Carlite glass is still required under Ford Motor Company's warranty policy. The following are recommended practices with respect to Ford - Lincoln - Mercury warranty glass replacements:

• Invoices to dealers should have parts and labor broken out. Dealers win be reimbursed for parts at their net price, and labor to a maximum of their labor rate times the service labor time standard for the parts being repaired or replaced.
• We highly recommend that the procedures prescribed in the CARS agreements be followed for all glass installations.
• Folllow urethane manufacturers' recommendations for proper use of urethanes and primers, and cure times for urethane installations.

FUTURE OF CARS

We appreciate the efforts put forth by many of you through often-difficult circumstances to try to make this a successful program. Carlite will work diligently to review things - gone - wrong, and to take lessons learned from this program to reengineer processes that will make future CARS programs simpler and more value - added to participants and customers alike. Your input in this process will be sought and is considered very valuable. You may send your comments on CARS in general to carglass@visteon.com. Thank you to all who provided constructive input over the last few months in trying to make this a more viable program.

CARS has other programs it plans to implement in the not - too - distant future for which we will request your input and participation. We look forward to your participation in these future CARS programs.

Sincerely,

CARS Program Team &
Carlite Sales