European Stars and Stripes (Newspaper) - December 16, 1994, Darmstadt, Hesse Page 6 the stars and stripes Safe audit Friday december 16.1994 audit from Page 1 Mph a huh my imm Imam Mem _. / stars and obtained a copy Las week. The Sample about 15 percent of total sales for that Quarter uncovered 24 cases in which pm and Chrysler customers paid an average of $425 each in unauthorized fees for display cars according to the report. A stars and stripes report in march1992 examined the pricing of cars by oms and Ford. The report indicated that overseas customers were being charged More than authorized for vehicles through cafes and that they could often find a better car Deal in the states. Oms criticized the 1992 articles de Nying that any overcharging took place. Customers in the cafes program Don t pay More than they should Jeff Gardner general manager of military car sales the oms sales Arm in Europe said then. This week Gardner referred the stars and stripes to the firm Snew York office for any comments on the cafes audit. The cafes auditors said that while base vehicle and option prices charged for new cars were within contract limitations additional charges not authorized in the current contract were added to some customer the report said that auditors examine transactions by oms and Ford review ing documents at cafes Headquarters in Dallas at 18 exchanges plus cafes locations in Europe and the Pacific offices in new York new Jer sey and Germany. The auditors listed examples of oms sales that violated the cafes policy of set prices for everyone. The report noted three 1992 Pontiac grand am be coupes were sold in Germany within a at Rhein main a Germany senior airman Sheila St. Pierre looks Over new car models tuesday wit the help of sales represent live Graeme Mcfarland. Re " r"., the audit report 15-day_ time Frame with varying discretion Creti onary discount. The third display be additional $50.00 charge for the overseas nary discounts. A display vehicle was sold hide was sold 2 Days later at vog Jeweh version of an extended Germany but the customer did t receive the auditors also found 10 oms Cus any discretionary towers who took stateside delivery on the auditors gave additional examples Chrysler made cars but were charged the of customers receiving unequal treatment higher Price for the overseas extended on pricing noting two 1992 Chevrolet warranty. Camaro is coupes were sold on 23 and 25 february 1993 with differing Dis counts. The one sold on 23 february re j we a. �. To a. To " v. A � re my i few aft to turf a of we it in a Vic the i Ilioiu Vav Iii including a seven percent markup toning. The $68 storage fee was redux after our review oms stated they Dant to contractually authorized storage a o of a. Of a of i a Ftp " it 1. _ .5 .1.1 _ j _a__4.made refunds totalling $10,048.50 to 804 customers charged for aftermarket floor Mats when their cars either already had floor Mats included in a factory equip ment package or when factory floor Mats were available for less than the oms purchased charges for both special order and the Exchange service s monthly pricing reviews of manufacturers to Check oms and Ford compliance with the 7 percent markup requirements for new car Sale were inadequate the audit stated. The computer program pc Carbooke used dance some officials m u m in by the stars and stripes officials at overseas military sales corp., which is the focus of most of the findings in the cafes new car sales program audit refused to comment this week on the report. Officials at the company s Headquarters on Long is land n.y., declined wednesday to be interviewed about the audit asking instead for written questions. On thursday afternoon Gerry Schilling who described himself As a company director said he did not know when the written questions would be answered Al though he indicated that it probably would be after of macs president Gene Leavy returns to the office sometime next week. Between cafes and us someone will get Back to you he said. At the army and air Force Exchange service head quarters in Dallas officials also refused to be inter viewed on the report and they too asked for written questions. Cafes spokesman Fred Bluhm said thurs Day evening that the new car sales program staff would need More time to answer questions pose wednesday. Oms is the marketing firm that Sells cars on Over seas military installations on behalf of general motor Sand Chrysler corp. Dave Mcwilliams manager of military sales for Ford Export operations in Dearborn mich., said thursday that the primary issues relating to Ford in the audit were resolved in 1993. Mcwilliams disagreed with the auditors statement that his company s fees for special european modifications primarily engine modifications and different tires for High Speed driving were not authorized by the auditors also found that oms to r " we to charged $50 More than the contractually to Check the prices is not an adequate authorized manufacturer s suggested re by itself for verifying compliant Tail Price for overseas extended warranty Wlton the seven percent markup the on the Chrysler manufactured vehicles Aud to said. The report Points out that the contract As an example of the inadequate Corn has now been amended to authorize an see audit on Page 7 sales report Ford s contract with cafes. They were not unauthorized charges Mcwilliams said. Instead the Issue was that his company had not substantiated to cafes that the fees reflected actual costs. It has since done so he said. Everything was addressed and they were satisfied he said. In 1993, Ford combined its modification charges which Mcwilliams said ranged from $200 to $900 per vehicle and its $49 Export fee to create a Flat $300-per-vehicle distribution handling and delivery fee. The customer is getting a pretty Good Deal Mcwilliams said adding that the Flat fee had been approved by cafes. On another Issue raised by auditors me Williams said Ford has provided cafes with documents that verify its charges for Ocean freight and Marine insurance
