The Rural Voice, 1979-11, Page 11Dealers
say OFA
warranty call
is too rigid
BY ADRIAN VOS
Farmers have been complaining for
years about the lack of parts supplies for
farm machinery, resulting in a government -
appointed Ontario Farm Machinery Board.
This board is to look into complaints of
neglect by farm machinery manufacturers
with regard to parts availability and other
problems.
Lately the Ontario Federation of Agri-
culture (OFA) has been pressing the
government of Ontario for a law governing
equipment warranties and parts supplies.
The government has proposed a volun-
tary code of practice for manufacturers and
dealers, but the industry has not been very
enthusiastic in support of such a code. For
that reason the OFA now wants a firm law
setting forth the conditions that must be
incorporated in equipment warranties.
The OFA wants these points made into
law:
1. Compensation for losses caused by
lack of parts.
2. Must also apply to parts of old
machinery for a certain time.
3. Performance guarantee for two years
and in -Province parts depots.
4. Change the role of the Farm
Machinery Board from negotiating role to
an arbitrator role.
5. Legal power for Farm Machinery
Board and protection against prosecution.
6. Warranty term for at least two years
or one based on use -hours.
7. Enforcement of delivery times of parts
(both in emergency and in regular
circumstances.)
The reasoning of OFA is that manufac-
turers and dealers, who have sold a very
expensive piece of equipment, are morally
obliged to make sure that this equipment is
functioning when needed. If they are
unwilling to provide that service, it is the
duty of the government to protect the
buyer.
Huron county machinery dealer Neil
McGavin, past president of the Ontario
Retail Equipment Dealers Association and
a former dealer representative on the
Ontario Farm Machinery Board (OFMB),
thinks that the position of the OFA and of
the four farm representatives on the
OFMB is much too rigid. Nevertheless he
thinks that real progress had been made
lately and was a bit surprised at the
demands for change by the OFA.
Mr. McGavin acknowledges that there
are dealers who give less than perfect
service, but he doesn't think that legis-
lation is the answer: "It's just not
practical," he said. "You give it to
government and they usually screw
everything up."
He finds that the OFA approach is much
too simplistic. "The average farmer
doesn't understand the complexity of
equipment dealings. It is for instance
against the law to transport equipment for
another dealer without a PCV licence. I
can' t legally go to Toronto to pick up a
part and at the same time bring something
downfor a fellow dealer. Strictly speaking, if
the law was enforced, I couldn't pick up a
tractor at a farm to bring it in for repairs
without a PCV licence."
OUT OF BUSINESS
He maintains that a dealer who doesn't
give service will be out of business. His
only business will be with customers who
will forego service in order to save a bit of
money, but in all cases that were
investigated while he was on the OFMB, it
was these farmers who complained about
lack of service. These are also the people
who scream for a part needed on a Sunday,
and when the dealer arranges that
a man will come in especially for them to
the supply depot, they don't show up. Or a
part may be flown in from outside the
country and when they see the extra cost of
transport they leave the dealer with the
part and cost.
John Radford, a dealer from Londesboro.,
concurs. He says that the White Motor
Company will send someone out at any
time if a dealer so requests, but because of
the problems explained by Mr. McGavin,
he is careful who he sends down. If he is
not absolutely convinced that the farmer
actually will go, he doesn't make the
arrangements.
Mr. McGavin doesn't know what law
could compell a foreign based company to
conform to the demands of OFA. He thinks
that it would be much more useful if the
OFA demanded that parts be interchange-
able between different machines. "Look at
wheels alone," he says. "There are wheels
wiUi lout, five, or six studholes. Why not
s r!"' thcm? Why not for bearings
and h) draulic hoses?
i were is some cooperation on hoses, but
two of the big companies are still holding
onto their own size, different from anyone
else. They are John Deere and Inter-
national Harvest er.
NOT ALWAYS HEEDED
He finds that voices from Canada are not
always heeded abroad. He himself has had
THE
occasion to threaten to withdraw as dealer
for Leyland unless they made improve-
ments. There's no law that can do that, he
thinks.
He rejected all the requests of the OFA
as impractical. A responsible dealer will
strip another machine for a needed part. If
the dealer is not responsive he will lose his
best customers.
The western provinces which have a law
compelling an extended warranty , have
added 15% to the purchase cost of
equipment and Mr. McGavin doubts the
average Ontario farmer is willing to pay
more. His experience is that most farmers
would rather take the risk for a lower price.
He has too many parts in store that have
been ordered and never picked up: when a
farmer saw the extra cost he suddenly
could do without.
It is the same improvident farmer who
has his machine sitting in his shed all
winter and then suddenly discovers that it
needs repair on the day he needs it in the
field. Then he demands a temporary
replacement or emergency part supplied at
no extra cost.
If a dealer lets inadequately trained
people work on a sensitive machine,
causing more damage, he can be sued now,
and no new legislation will improve upon
the system, Mr. McGavin feels.
Most equipment companies have ex-
tended warranties already in place. If a
defective part is found, no matter what
time has expired, it will be replaced at no
cost. Mr. Radford, who went through such
an experience with a Deutz tractor, found
that they even pay for all labour required.
He thinks that this is customary in Europe.
Neil McGavin is firmly convinced that if
a voluntary code of ethics is adopted, all
equipment dealers will fully cooperate.
Mr. Radford is not so sure. He thinks
that in large areas, with only one dealer,
customers are very much dependent on his
good will. He gets frequent calls from
outlying areas for parts, some even from
Prince Edward Island. He thinks that it is
the duty of these dealers to provide a better
service.
OFA's Fern Dale, who deals with farmer
complaints from Toronto, says that farmers
have indicated they are willing to pay more
in order to get that extra protection that
comes with it.
NO RECOURSE
"It happens that a S60,000 piece of
equipment is used for six weeks during the
season, and the next year, after the
warranty has expired, the machine may
break down. Then there is no recourse for
the owner," he says.
Most complaints coming in to the OFA
fieldmen seem to confirm the position of
Mr. McGavin. Most of these complaints
deal also with maintenance and repair
service.
There are continuous complaints about
RURAL VOICE/NOVEMBER 1979 PG. 9