Page 17 - Foton Warranty Policy & Procedures Manual (13122019)

WARRANTY POLICY & PROCEDURES MANUAL

All warranty claims will be rejected if the vehicle has an outstanding campaign. All campaigns are
required to be completed as a matter of urgency.

11. WARRANTY RECORDS

All records relating to warranty must be retained for five (5) years. The first year after repair, the records
must be accessible.

11.1 Claim Reviews

From time to time claims may be requested for review. These claims will be checked for compliance
with the FOTON Warranty Policy & Procedures Manual. Any inadequate, incomplete, incorrect, lack of
information claims are subject to reversal.

12. WARRANTY AUDITS

Random audits are required from time to time. Importantly, job card accuracy, parts retention, and
compiling job cards is a prerequisite.

If warranty audit anomalies are equal to or less than 5% error rate of the total audited value, the result
will remain as is.

However, if the anomalies are greater than a 5% error rate or if a warranty audit identifies anomalies
(e.g. forged documents, customer signatures, untruthful or false service/work,) the following will be
enforced by Foton NZ:

 The dealer is required to return 10-20 times the value of the warranty claim reimbursement total
(s) within 10 working days.

Warranty reimbursement (payment) made to dealers should be interpreted as tentative payments only,
as payment will be made with the possibility of a warranty audit being performed at a later date. Should
any dealer or dealer’s representative refuse or restrict FOTON’s appointed representative from
performing an audit for any reason, FOTON may reverse payment for all warranty claims unable to be
substantiated by the intended audit process. Furthermore, FOTON will not process any further warranty
claims received from the said dealer until such time as FOTON’s representative is given an opportunity
to review the dealer’s records.

Should a dealer not be able to validate any claim through; -

 failure to supply faulty parts,
 failure to supply requested documentation, and/or
 failure to follow procedures to adequately support a claim,

then the Dealer’s Replacement Parts Account will be debited the appropriate amount.

 PLEASE NOTE: Where a dealer has insufficient records to justify a warranty claim, it is
unacceptable to contact the customer to substitute for lack of evidence.

12.1 Audit Appeal Process

Once the audit report is received by the dealer, the dealer has fourteen (14) calendar days to appeal the audit
result. This must be completed in writing and provide valid reasons/documentation to support the appeal.

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