WASHINGTON – A former Obama administration official takes potshots in his new book at House Majority Leader Steny Hoyer, a fellow Democrat who led congressional efforts to reinstate dealerships terminated by General Motors and Chrysler, reported Automotive News.

Steven Rattner, who headed the administration’s auto task force that shepherded GM and Chrysler through bankruptcy, also takes aim at dealers Jack Fitzgerald and Tamara Darvish.

The Maryland dealers are two of the three leaders of the Committee to Restore Dealer Rights, a group of rejected GM and Chrysler dealers that joined forces with Hoyer to help get a dealer-arbitration law enacted last year.

“When Congress did try to intervene, as with auto dealer closures, the result was an enormous, pointless distraction for the two companies at a critical time,” says Rattner in his book, Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry. The book went on sale Monday.

Following numerous meetings with Fitzgerald and Darvish last year, Hoyer teamed up with Rep. Chris Van Hollen, D-Md., to draft and steer the dealer-arbitration bill through the House.

It was passed by the Senate a few days later and signed by President Obama in December.

Rattner expresses particular pique with Hoyer, whose district is in Maryland, for lobbying him on Fitzgerald’s and Darvish’s behalf.

“I was mystified that the House majority leader chose to devote so much time to this,” Rattner writes. Hoyer, the No. 2 Democrat in the House, “wasted so much time browbeating the task force about a couple of Maryland car dealers,” he says.

A Hoyer spokeswoman defended the lawmaker’s actions.

He “worked hard to ensure that there was a fair process in place, which was needed after dealers were closed and tens of thousands of jobs were cut amid serious questions about the true economic benefit,” Hoyer spokeswoman Katie Grant said.

She cited a July report by an independent government auditor that faulted the auto task force for seeking dealer cuts at a time of economic hardship and without rigorous analysis of their impact on the automakers.

Referring to the dealer arbitrations, Grant said the audit “confirmed (Hoyer’s) belief that such a process was necessary.”

During arbitration, GM reversed course on more than 700 of the 2,000 dealerships targeted for closure during its bankruptcy proceeding last year. These stores were offered letters of intent by the company after Ed Whitacre became CEO.

Chrysler stood by its decision to close 789 stores during bankruptcy and battled dealers in arbitration. Only 29 of these shuttered stores are on track for reinstatement.

A fully automated administrative system is becoming essential for product providers to conduct business efficiently. One example is Xzilon, Inc.’s latest product, the X4.

Appearance protection products have been bundled to create the X4 package. It was launched at the National Automobile Dealers Association conference in February and is supported by F&I Administration Solutions’ SCS Auto platform.

Dan Jones, regional sales manager at Xzilon, says a significant benefit of the electronic solution is its ability to provide a real-time look at the company’s business transactions. A snapshot of sales is available at any time throughout the month. Agents are able to go online, log into their own agent report and view their customers only. These reports are provided in real time and show exactly how many units have been sold per dealership.

Paper warranties sold by dealers are usually held and only sent to product providers at the end of the month. Because everything must be manually entered into the system, opportunities for errors as well as service delays increase.

“When there’s a claim in the first 45 days [with a paper-based system], we often have no record they are even a customer,” Jones says.
Another advantage is that providers know what to expect from their dealers and know if dealers sell more contracts than they have submitted.

In addition to the administrative system, Xzilon’s X4 product is supported by a state-of-the-art claims site. The system is user friendly – and not only for dealers, but for customers as well.

Customers can log in to the claims site, enter information about themselves and file the claim all in about five minutes. Enabling customers to file their own claims is beneficial for all parties involved because (a) the dealer representative does not get involved, which not only keeps him or her available for productive work at the dealership, but keeps the “middle man” out of the claims process, and (b) the customer can at any point check on the status of the claim without waiting for a “third party” to become available.

To get started, customers only have to enter their name or VIN. Once their information appears on screen, customers have the opportunity to update the address or contact information should something have changed (be it a temporary or permanent change). The ability to change the location, regardless of the customer’s main address, makes is possible to have the vehicle repaired in the customer’s current location.

After customers have reviewed their personal information, a picture of their vehicle is shown. Users can click on the areas of the vehicle involved in the current claim. The system will prompt with questions about the size and number of dents, whether multiple locations are affected and in what manner.

Customers can also make additional notes for the claims department/processor to review. A prime example is when customers take their vehicle to the dealership for an oil change. It is possible to schedule the repair and the oil change at the same time.

Once the claim is submitted, an e-mail and text message go to a pre-selected service provider from a network of dealerships and auto repair shops in a particular location. The selected service provider then has 48 hours to contact the customer. If the service provider has not gotten in touch with the customer within 36 hours, Xzilon contacts the provider to see if they are still available to do the work. If they are unable, Xzilon identifies another provider in its local network to complete the repair.

“The service behind it is what really makes our program work,” Jones says.

Xzilon has set up a network of service providers around the country to handle claims. Its network of providers covers three areas: dent, windshield and wheel. This network is pre-selected, pre-approved and rates are pre-determined.

In addition to the existing network, Xzilon can also add a provider should a customer desire a particular repair shop. Of course, the provider must go through the same selection and qualification process that all other “approved” providers go through, but the goal is to have a qualified network of providers so that the customer is satisfied.

Jones says Xzilon’s claims process has been well-received by dealers because customers can file and monitor claims themselves, and by customers because they retain control of the filing process. Furthermore, multiple quotes for repairs are no longer needed. Service providers have responded positively because Xzilon increases their business and reimburses for services based on short turnaround.

Xzilon’s warranty programs will soon be offered in an online capacity.