II. Goodwill Authorization Policy

The goodwill policy involves three stages of authority as follows:

Stage 1: Any dealer may contact Volvo on behalf of a customer to request
financial assistance. Prior approval (from the Regional Manager Parts and Service) for Volvo participation in a repair is necessary, unless the dealer qualifies under stages 2 or 3.

Stage 2: Any dealer may commit Volvo to 1/2 of goodwill repair cost, without
prior approval if:

a. the dealer has an established goodwill account to address business/service issues not related to the product.

b. the dealer pays the other half -- no cost to the customer.

Dealers with this level of authority (50/50) are Stage 2 dealers, and may follow the new procedures for goodwill claims. If you have further questions, contact your Regional Manager, Parts and Service.

Stage 3: Certain dealers selected by their Area management may commit
Volvo to any financial assistance they feel is appropriate for a repair, without prior approval from Volvo. This authority is granted to dealers who meet certain objective selection criteria, as defined by the respective area management. This authority does not preclude consultation with Volvo on any particular case, but it does allow the opportunity for prompt decision making. Dealers with this level of authority are Stage 3 dealers.

NOTE: The authority provided in stages 2 and 3 may be withdrawn by Volvo for poor judgment or abuse at any time.