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Dealer Letter

December 14, 1990


TO: All Ford, Lincoln/Mercury, and Heavy Truck Dealers

This letter discusses a matter of utmost concern and importance.


EPA AUDIT OF EMISSION RECALL 88E72 DEALER REPAIRS

The Environmental Protection Agency (EPA) conducts audits of emission recall repairs performed at dealerships. These random audits cover domestic and import vehicles. Last February, the EPA conducted an audit of emission recall repairs on 1984/85 model Escort/Lynx vehicles (88E72). The results of the EPA audit were not good. Only 50% of the vehicles were repaired completely or correctly. In addition, the modifications label installation and the Vehicle Emissions Control Information (VECI) decal revision was correct on only 19% of these vehicles.


FORD FOLLOW-UP AUDIT OF 88E72 DEALER REPAIRS

Our initial response to the EPA was to conduct a similar audit. This audit covered a much larger sample of vehicles in 15 District office cities. The findings, to our disappointment, were not significantly different from the EPA's findings. Of the vehicles inspected, 64% were repaired completely and correctly. Only 5% of the inspected vehicles had the modification label installation/VECI decal revision complete and correct. Also, 3% of the vehicles lacked any evidence that the recall was performed, although claims were submitted.

RECALL SOME 88E72 VEHICLES AGAIN

Based on these results, we will be recalling some of the vehicles again. This is being done to assure the EPA and our customers that the 88E72 recall repairs are complete and correct. This new recall will be announced shortly.


REFAIR AUDITS BY GOVERNMENT AGENCIES WILL CONTINUE

Emission recall repair audits by the EPA and the California Air Resources Board (CARB) are going to continue. We also believe their repair audits will increase in frequency. Other Governmental agencies, such as the National Highway Traffic Safety Administration - NHTSA, could very well begin auditing recall repairs. We cannot afford to continue at the level of recall repair performance indicated by these audit results.


ACTIONS BY FORD RESPONDING TO AUDIT RESULTS

Since these audits, we have reviewed the recall repair process. Actions were identified which we could take to greatly enhance the technician's ability to consistently perform correct/complete repairs. These actions are now in place for all new recalls:

^ Parts kits with complete assemblies will, in many cases, replace individually ordered parts.

^ All parts kits will include easily understood repair instructions with drawings and/or photographs used much more
frequently.

^ Emission recall parts kits will include preprinted authorized modification labels and VECI decals as required. When the
existing VECI decal requires modification, a permanent marking pen will be included.

^ Recall parts kit availability prior to the launch of recalls is being increased.

Additionally, we will begin nationwide random verification of recall repairs. Chargebacks will be made for incomplete or incorrect repairs.
RECOMMENDED DEALER ACTION

We urge you to put a program in place to verify the completeness and correctness of repairs being performed in your Service Department. The revised repair instructions, now being used, will permit you to quickly do this. If you do not personally conduct this verification, you should periodically review your program's effectiveness.

While it is unfortunate that we find ourselves in this position, we believe that much good can result. We continue to operate in an environment of mutual trust and believe that this will not alter our relationship. Furthermore, we believe that most technicians want to do thorough and accurate repairs. Our actions involving parts and technical instructions should greatly improve their opportunity to do so.

Please review this information with your Parts and Service personnel. With the changes we are making, and their assistance, I am sure we can quickly resolve this concern.