2021-2022 Audi Sales Reporting and Recall Compliance Policy

Audi of America (AoA) has issued an updated policy regarding vehicle sales reporting, reinstatement, and auditing, effective September 30, 2021. This communication, a 2021 Audi e-tron manufacturer_communication, is crucial for dealers to ensure the accuracy of customer data and the integrity of sales reporting records, aligning with established Audi global reporting standards. These policies affect how new and Certified Pre-Owned (CPO) Audi vehicles from 2021-2022 model years are sold and reported.

Sales Reporting Requirements

Before delivering any new or CPO Audi vehicle to a customer and reporting it as sold, dealers must ensure 100% closure of all applicable recalls, campaigns, and "Required Vehicle Updates (RVUs)". A new vehicle cannot be reported as sold unless it is first reflected as "Status 50 (Dealer Stock)" in "OMD Web". If a vehicle is reported as sold from "Status 35", Audi of America will reinstate the sale, and it can only be reported once it reaches "Status 50".

The "Sale Date" is defined as the date of delivery or handover to the end customer, in compliance with the Audi "DtC" (Delivery to Customer) process. Vehicle sales cannot be reported if the vehicle is in offsite storage or "NORAD". Dealerships are required to report all new, CPO, and pre-owned Audi vehicle sales within three business days of the sale date.

Incentive Eligibility Rules

Sales reporting to AoA must be consistent with the vehicle's title and registration filings, including the date of sale. A vehicle with a "Sale Date" and "Reported Date" that fall within different monthly sales periods will not be eligible for retail incentives (e.g., National Loyalty, Conquest, Marketing Allowances) or Dealership Bonus programs (e.g., Margin Bonus).

Kind of Sale (KOS) Types

When reporting vehicle sales in "OMD Web", dealers must enter the appropriate "Kind of Sale (KOS)" type. KOS types are defined by customer group, eligibility for quarterly sales bonus achievement (Dealer "counter"), and Dealership Bonus payment (Dealer Bonus "payer"). The following table outlines the various KOS types:

KOS	KOS Group	Customer Group	Reporting Process	Dealer "counter"?	Dealer Bonus "payer"?
0	Retail - Individual	- Individual retail customers, including Affinity, Friends & Family, VIP Customers and AoA/VWGOA contract employee program sales	Reported by dealership as "KOS 0"	YES	YES
2	Retail - Business	- Individual business customers, including Dealer Small Fleet Incentive program sales and VIP Customers	Reported by dealership as "KOS 2"	YES	YES
3	Retail - No Bonus	- Dealer employees participating in the Dealership Employee Purchase Program (AFS DEPP)	Reported by dealership as "KOS 3"	YES	NO
4	Demonstrator vehicles, Dealership Courtesy vehicles, MY21 Courtesy Vehicle Purchase, Common Ownership vehicles, Total Loss vehicles	- Demonstrator vehicles titled and registered in the dealership's DBA - Dealership Courtesy vehicles included in the AFS Courtesy Lease programs - Dealership Courtesy vehicles not included in AFS Courtesy Lease programs, including rental car company sales for this purpose - Dealership Courtesy vehicles enrolled in the Courtesy Vehicle Purchase Program by dealers in CO, MD, OK, SC, TX, VA, VT and Puerto Rico and subsequently retailed to a consumer - Common Ownership vehicles (i.e., any sales to Audi dealers, an entity owned in full or in part by an Audi dealer or its owners) - Total Loss vehicles defined as dealer inventory vehicles deemed a total loss by the dealer's insurance company and sold to the dealer's insurance company as evidenced by the transfer of the vehicle title/MCO	Reported by AoA* as "KOS 4"	NO¹	NO
5	AoA Direct Sale	AoA Fleet customers	Reported by AoA* as "KOS 5"	N/A	N/A
6	Audi Certified pre-owned	CPO customers	Reported by dealership as "KOS 6"	N/A	N/A
7	Audi pre-owned	Non-CPO used vehicle customers	Reported by dealership as "KOS 7"	N/A	N/A

*Per Audi DtC guidelines, vehicles reported by AoA occur in the month where vehicle is wholesaled; Warranty becomes active at time of wholesale.

Safety Recalls, Compliance Recalls and Stop Sales

Accurate customer information is critical for any efforts related to recalls, campaigns, and "Required Vehicle Updates (RVUs)". Dealers must confirm a vehicle's eligibility for any recall or stop sale notification by entering the VIN into either the "Recall / Service Campaign Lookup tool" on audiusa.com, or the "National Highway Traffic Safety Administration (NHTSA) Safety Issues & Recalls search tool".

Important Warning: Federal law prohibits a dealer from delivering a new motor vehicle covered by a Recall Notification under a sale or lease until the defect or noncompliance is remedied. This also applies to Audi Certified Pre-owned vehicles affected by an open recall campaign. Dealers must maintain a hard copy of the lookup output on-site.

Sale Reinstatement Policy

Circumstances requiring a vehicle sale to be reversed or updated include sales transactions not successfully completed, changes between retail and non-retail "KOS codes", or changes to the reported sale date. All reinstatements must be completed within sixty days of the reported sale date. Reinstatements beyond this threshold require documentation and escalation to the dealer's Audi Area team.

Only the "Audi Incentive Services Desk" team is authorized to execute reinstatement requests, which are submitted via the "Audi Incentive Claims portal". This portal allows users to reinstate vehicles, change "KOS types", input customer information changes, and track request history.

New Vehicle Sales Audit and Chargeback Policy

Audi conducts quarterly audits focusing on sales activity. These audits occur within six months of the quarter's end. Vehicles reported as sold but never delivered or handed over to a customer will be reinstated. The audit process identifies "Exported" vehicles (using "Known Exporter Lists"), vehicles with "No Title and Registration" data, and "No Match" vehicles where title and registration information is mismatched.

Dealers have thirty days to appeal audit findings by submitting supporting documents. If an appeal is unsuccessful, chargebacks will be debited against the dealer's parts statement. These chargebacks may include funds from retail incentive programs, marketing allowance incentive payments, business performance bonuses, margin bonuses, and regional-based incentives.

What This Means for Audi Owners

While this 2021 Audi e-tron manufacturer_communication primarily targets dealers, it has indirect implications for owners. The policy ensures that any new or CPO Audi vehicle you purchase has had all applicable recalls and required updates completed before delivery, enhancing your safety and vehicle performance. It also underscores the importance of accurate customer information, which is vital for you to receive timely notifications regarding any future safety campaigns or updates. If you have concerns about a specific vehicle, you can use the "NHTSA Safety Issues & Recalls search tool" to check its recall status by VIN.

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Source: NHTSA ID: 10201752