Volkswagen of America Certified Collision Repair Facility Program

Program Overview 2012

VW-Certified Collision Repair Facility Program

(CCRF) Overview

Volkswagen of America, Inc. 25.01.2012 Page 2

• Summary: A VW-Certification for collision body shops that perform repairs in accordance with Volkswagen’s safety standards and specifications.

• Scope: Offered to dealer-owned and independent body shops sponsored by a Volkswagen dealer.

• Approach: VWoA selects and enrolls facilities willing to meet program standards. VWoA visits shops to assess and monitor progress to meet standards.

• Launched: July 1, 2010

• Shops Participating: 201

The CCRF Program Benefits Both Sponsoring

Dealer and Repair Facilities

Volkswagen of America, Inc. 25.01.2012 Page 3

Sponsoring Dealer

Repair Facilities

– Repeat Vehicle Sales – Increased opportunity to

collaborate with the body shop to sell customers on upgrades and new vehicles for a total loss.

– Parts Sales – CCRF dealers purchased

$25K more Collision Parts last year on average compared to non-CCRFs.

– Quality – Assurance repairs are

completed to VW specifications, including OEM parts, tools, equipment, and training.

– CSI – Refer customers to a

Volkswagen-certified shop. – CCRFs have 98% CSI.

– Marketing – Rights to use the VW trademarks & ability to market VW certification with

sponsoring dealer. – Receive a Free Marketing kit containing value brochures, banners, and

customer information pieces. Free replenishment of marketing materials. – Ability to send BYO mailers to dealership VW customers. – Free BYO email introduction to sponsoring dealership customers.

– Referrals – All dealer referrals. – Roadside Assistance. – Employee Fleet. – Roadside and employee referrals average 1 per shop per month, equates

to $30K in increased business per year.* – Training

– Access to dedicated vehicle training manuals. – Access to VW collision position statements. – Access to VW technical & repair information (Elsa/Erwin).

– Shop Management Tools – Financial Tools. – Free CSI tools. – Shop satisfaction survey, parts utilization reporting & 20 group. * Average VW repaired vehicle estimate; Source: Mitchell Collision Data, 2010.

Key Program Elements

Volkswagen of America, Inc. 25.01.2012 Page 4

1. Requirements – Volkswagen standards and specification for the proper repair of VW vehicles – Includes dealership requirements and repair facility requirements

3. Ongoing Monitoring

– A process to monitor the progress of repair facilities towards meeting program objectives and goals.

4. Marketing Support

– Access to VW-developed branded marketing materials, use of VW trademarks, and a dedicated program website

2. Certification – A structured approach to certify shops in accordance with Volkswagen standards and specifications.

5. Enrollment & Next Steps

– Process for shops to enroll in the VW-Certified collision repair program – Information on program fees

Repair Facility Requirements

Volkswagen of America, Inc. 25.01.2012 Page 5

Complete program standards are available in the CCRF Program Manual.

All VW-Certified Collision Repair Facilities

1. VW Germany required collision repair tools and equipment.

• Bench: Car-o-Liner or Celette

• Welder: Weidlander + Schill, Elektron, Techna

2. I-CAR & VW proprietary training.

• 2 body techs

3. Use a minimum of 95% OEM parts in dollar terms in the repair of VW vehicles.

4. Provide CSI survey results to Volkswagen.

5. Provide repair facility repair order data to Volkswagen.

Sponsoring Dealer Requirements

All Sponsoring Dealers 1. Refer all Volkswagen models involved in a collision

to their sponsored repair facility at no charge. 2. Collect program fees from their sponsored repair facility

– Volkswagen will bill the dealership parts account for repair facility costs. – Dealers will recover these fees from the repair facility.

3. Sponsoring dealers will be required to install CollisionLink software to communicate with their sponsored repair facility on collision estimates, parts ordering, and parts price matching as part of the Genuine Advantage Program. This software will entail an additional cost for dealers ($199 setup, $150 per month, 50% of monthly fees are co-op eligible).

Volkswagen of America, Inc. 25.01.2012 Page 6

Certification Timeline* (VW Exclusive Facilities)

Volkswagen of America, Inc. 25.01.2012 Page 7

Q1 Q2 Q3 Q4 Q1 Q2

Step 1: First Certification Visit •4-6 weeks after contract signed. •Perform a standards assessment. •Following the first visit, the facility will receive a 12-month provisional certification from VWoA.

Step 2: Second Certification Visit •Review a gap report with the repair facility 2/3 weeks after the first visit. •Develop action plan for the repair facility to comply with VW-CCRF program standards.

Step 4: Third Certification Visit • Approx 6 months after first visit. •Conduct a standards assessment. • Review compliance with requirements and correction of gaps since first visit. •For shops meeting program standards, VWoA will issue an official certification plaque of program compliance

Step 6: Annual Re-Certification Visit •1 year after first visit. •Conduct a standards assessment. • Review compliance with requirements and correction of gaps since third visit. •For shops meeting program standards, VWoA will issue an official certification of program compliance.

*Note: Repair facilities already

participating in the Audi Authorized

Collision Repair Facility network

will have a modified certification

timeline following the Audi

certification schedule.

Enrollment Contract Signed •Begins Certification Process

Step 3: Order Tools & Schedule Training •Must be complete within 6 months of first visit.

Step 5: Renewal Authorization •For shops meeting program requirements.

Ongoing Monitoring

Volkswagen of America, Inc. 25.01.2012 Page 8

– To assist shops with meeting program objectives and goals, Volkswagen will provide the following resources:

– Repair facility satisfaction survey with certification visits and Volkswagen certified collision repair facility program.

– Repair facility repair order and estimate data analysis to confirm parts usage and increased VW repair traffic.

– Body shop financial tools.

– Annual recertification visits to provide repair facilities with an action to support program compliance.

VWoA is Pursuing Multiple Strategies to

Market CCRFs Support Description

Referrals VWoA refers Roadside Assistance and Employee fleet cars exclusively to CCRFs. Dealers must refer all vehicles to CCRFs. VWoA has developed action plans to ensure towing accuracy.

Accident Guide Placed in every new vehicle; advises customers of rights to choose a repair facility and to call Roadside Assistance in case of accident.

Welcome Emails Sent by VWoA to all sponsoring dealership customers to notify them of a new CCRF in their area.

vw.com Website CCRFs have a dedicated page on vw.com; CCRF sponsoring dealers will be designated; VW-Service page advocates calling Roadside in an accident.

Customized Emails/Mailers

CCRFs have the ability through their sponsoring dealer to send emails and mailers direct to the dealer’s VW customers.

Shop/Dealer Marketing Kit

VWoA provides banners, value brochures, and accident guides for shops and sponsoring dealers to display with free replenishment.

Video Kit VWoA is developing a video kit for new owners to learn about the value of taking their vehicles to a CCRF.

Vehicle Stickers VWoA will be placing stickers on all new vehicles advocating Roadside.

VW Fixed Operations 25.01.2012

Page 9

CCRFs Should Use These Strategies to

Directly Market Their Certification Support Description

Logos & Trademarks

CCRFs can use the Volkswagen and VW-Certified logos online, inside their stores, on print advertising, tech shirts, etc.

Dealer Affiliation Sponsoring dealers are required to refer all collision work to their CCRF. CCRFs are encouraged to mystery shop their dealer to confirm this is happening.

Customer Education

CCRFs should work with their sponsoring dealer to make sure the shop information is provided to all new VW owners at the point of sale.

Dealer/CCRF Websites

VWoA recommends linking to and from the dealer and CCRF websites and using logos and copy available from the CCRF shop website. CCRFs can also link to the CCRF locator on vw.com.

Customized Emails/Mailers

CCRFs have the ability through their sponsoring dealer to send emails and mailers direct to the dealer’s VW customers.

Direct Marketing Many CCRFs are using Google Ad Words, radio, and other online advertising to market their Certified status.

Additional DRPs CCRFs are using their VW-Certification to market their shop to collect top-tier insurance company DRPs.

CollisionLink CCRFs are using their Certification to encourage the dealer to price match parts using CollisionLink.

VW Fixed Operations 25.01.2012 Page 10

CCRF Dedicated Marketing Pieces

Volkswagen of America, Inc. 25.01.2012 Page 11

Interested in Becoming Certified? Here’s How to Enroll in the Program

Volkswagen of America, Inc. 25.01.2012 Page 12

Apply: Repair Facility completes CCRF Application Form with their sponsoring dealership. VWoA provides repair facility with an enrollment packet.

Interview: VWoA conducts a conference call with the repair facility manager and sponsoring dealer. Repair facility confirms they will meet all program requirements.

Accept: Repair facility signs an enrollment contract with VWoA to enter the program and begin the certification process.

Contact the Volkswagen Collision Program Manager for Applicable Program Fees

Volkswagen of America, Inc. 25.01.2012 Page 13

Overview – Volkswagen has instituted a program fee for repair facilities participating in the

VW-Certified Collision Repair Facility Program. – Program fees include:

– VW marketing materials and the right to market the facility as VW-Certified. – Financial, process improvement, and customer survey tools. – On-site inspection assessments to confirm compliance with VW standards.

– Fees do not include tools, equipment, and training. – See the program manual for a description of these costs.

– Program fees are assessed annually on the date the enrollment contract is signed.

Billing & Collections – Volkswagen will bill the dealership parts account annually for repair facility

enrollment fees on the date a contract is signed between the repair facility and Volkswagen.

– Dealers will recover these fees from the repair facility.

Questions? Please contact:

Lauren Rider Program Coordinator (703) 364-7697 Korin Hasegawa-John Collision Program Manager (703) 364-7677 Volkswagen of America, Inc. 2200 Ferdinand Porsche Dr. Herndon, VA 20171 collision@vw.com

Volkswagen of America, Inc. 25.01.2012 Page 14