2021-2022 Audi Sales Reporting and Recall Compliance Policy

Audi of America (AoA) has updated its Vehicle Sales Reporting, Reinstatement, and Audit Policy. This policy ensures the accuracy of customer data and the overall integrity of sales reporting records, aligning with established Audi global reporting standards. This communication, dated March 29, 2022, does not contain any new updates from the previous publication in January 2022. It applies to 2021-2022 Audi vehicles.

Sales Reporting Requirements

Dealers must adhere to strict guidelines when reporting vehicle sales. Before delivering any new or Certified pre-owned Audi vehicles, dealers must ensure 100% of applicable recalls, campaigns, and Required Vehicle Updates (RVUs) are closed. This is a critical step for Audi recall compliance.

No new vehicle can be reported as Sold unless it is first reflected as Status 50 (Dealer Stock) in OMD Web. "Any new vehicle that is reported as Sold from Status 35 will be reinstated by Audi of America and can only be reported once it reaches Status 50." If a dealer has a vehicle not accurately reflected as Status 50, they must submit a picture of the VIN, Monroney label, and bill of lading to [email protected].

The vehicle "Sale Date" is defined as the date of delivery or handover to the end customer. Sales cannot be reported if the vehicle is in offsite storage or NORAD. "Reported vehicle sales found to have violated this requirement will be reinstated, with all program related implications therein and other potential consequences." Dealerships are required to report all new, Certified pre-owned, and pre-owned Audi vehicle sales within two business days of the sale date.

Incentive Eligibility Rules

Dealership sales reporting to AoA must be consistent with title and registration filings. A vehicle with a "Sale Date" and "Reported Date" not within the same monthly sales period is not eligible for payment of retail incentives (e.g., National Loyalty, Conquest, Marketing Allowances). Similarly, such vehicles are not eligible for 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. These types are categorized by customer group and determine eligibility for quarterly sales bonus achievement and Dealership Bonus payment. Examples include Retail - Individual, Retail - Business, Retail - No Bonus, Demonstrator vehicles, and Audi Certified pre-owned.

Safety Recalls, Compliance Recalls, and Stop Sales

Accurate customer information is vital for all recall campaigns and Required Vehicle Updates (RVUs). Dealers must confirm a vehicle's eligibility by entering the VIN in the Recall / Service Campaign Lookup tool on audiusa.com or the National Highway Traffic Safety Administration (NHTSA) Safety Issues & Recalls search tool.

Important Warning for Owners: "Please note it is a violation of Federal law for a dealer to deliver a new motor vehicle covered by a Recall Notification under a sale or lease until the defect or noncompliance is remedied." Additionally, dealers "must not deliver any Audi Certified Pre-owned vehicle affected by or subject to an open recall campaign." If any doubt exists regarding a vehicle's status under an open safety or compliance recall, dealers must use the lookup tools and maintain a hard copy of the output on-site. This underscores the importance of Audi recall compliance.

Sale Reinstatement Policy

Vehicle sales may need to be reversed or updated under specific circumstances, such as when a sales transaction is not successfully completed, changes between retail and non-retail KOS codes, or changes to the reported sale date. All reinstatements must generally be completed within sixty days of the reported sale date. Reinstatements outside this threshold require documentation and review by the dealer's Audi Area team. Changes to customer information records or reported incentive program codes do not typically result in a reinstatement.

Reinstatement requests are processed through the Audi Incentive Claims portal. This portal allows dealers to reinstate vehicles, change KOS types, update customer information, and track request history. A copy of the signed sales agreement is required for reinstatement or sale data changes.

New Vehicle Sales Audit and Chargeback Policy

Audits are performed quarterly, focusing on a full quarter of sales activity, and occur within six months after the quarter's end. Audits identify VINs reported sold but never delivered, "Exported" Vehicles, "No Title and Registration" Vehicles, and "No Match" Vehicles (mismatched title/registration data). An updated "Known Exporter List" is published monthly on iAudi for dealers to reference.

After review, a letter is sent to the Dealer Principal/General Manager, detailing preliminary audit results and providing guidance on how to appeal. Dealers have thirty days to appeal, providing documentation such as proof of title transfer, registration transfer, vehicle title, insurance documents, or foreign diplomat paperwork. For exported vehicles, documentation proving the purchaser's name is not on the "Known Exporter List" or that the name matches all documentation is required.

Chargebacks will be debited against the dealer's parts statement for any VINs still identified as Export, No Title and Registration, or No Match after the appeal period. These chargebacks can affect Retail incentive programs, Marketing Allowance incentive payments, Business Performance Bonus, Margin Bonus, and Regional-based incentives.

Conclusion

Audi of America emphasizes that the quality of customer data is critical for managing business operations, ensuring timely benefits to customers, optimizing dealer program administration, and maintaining compliance with global reporting standards. AoA will enforce this policy, adjusting incorrectly reported sales and corresponding dealer bonus or incentive payments as necessary.

NHTSA ID: 10209454