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Business Tools | Thursday October 12 Ford’s Recovered OE Parts Pilot Goes NationalFord Motor Company will expand its Recovered Original Equipment (ROE) Collision Parts pilot program nationally during the fourth quarter of 2006.The ROE program captures and redistributes slightly blemished Ford collision parts as a cost-effective alternative to non-OEM collision parts. Primary categories of ROE parts include bumper fascias, hoods, fenders and doors. “Our initial pilot program, while small in scope, has proven the value of ROE parts to the collision repair industry,” said Tom Wenzel, Collision Repair Products Manager for Ford Customer Service Division (FCSD). “The national pilot will provide us with more information and greater reach as we continue to build inventory and set the stage for a full national roll-out.” The ROE Collision Parts program was created to identify and manage the growing problem of excess, surplus and rejected Ford collision parts filtering into the aftermarket in an uncontrolled manner, while assisting insurers in reducing cycle time and overall severity by providing high-quality replacement collision parts at reduced list prices. FCSD now captures rejected or excess assembly plant and supplier-produced service parts, as well as dealer inventory returns. It then passes all captured parts through a stringent quality control process and identifies those eligible for the ROE program. The ROE program’s strict quality control measures are intended to assure that:
Additional benefits of the ROE Collision Parts program are a more efficient process to identify and recycle certain materials and a measurable reduction in the amount of scrapped material disposed of at landfills. All ROE parts carry competitive list prices, will be clearly identified and branded as “Recovered” and carry the same service part warranty (excluding cosmetic damage) as genuine Ford replacement collision parts. The parts will be identified by the same part number with a unique “BP” suffix and will be classified in non-OEM categories on all major electronic collision repair estimating systems. “Our analysis shows that insurers are saving about three percent by using non-OEM collision parts on the average repair,” Wenzel explained. “With ROE parts, we now believe significant repair cycle time and overall severity reductions are possible because repairers can process their entire parts orders through one source – their Ford-Lincoln-Mercury wholesaling dealer. The result will be lower overall cost to the insurer, less hassle for the collision repairer, and greater satisfaction from vehicle owners.” ©2006 Collision Repair Industry INSIGHT | FEATURED
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