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Published: 26 June 2009      

AIAG and ECG agree damage reporting code

A global standard to report damage incurred to vehicles during transport has been developed by the US-based Automotive Industry Action Group and the Association of European Finished Vehicle Logistics

The Global Standard Logistics Damage Codes are designed to optimise the vehicle damage claim process, reduce the administrative burden of logistics suppliers dealing with as many standards as the manufactures and to ensure that damage is reported accurately.

During transportation, when vehicles change possession, they are inspected for any missing parts or options as well as other damage including scratches and dents. The damage is reported through a standard five-digit set of codes. These codes focus on three areas - type of damage, location of damage, and severity of damage.

While the damage codes have been used in the industry for more than 30 years, this is touted as the first truly global standard to be adopted internationally.

The damage codes were originally established by the American Railroad Association in the 1970s. With the evolution of time and changes to vehicles and accessories, it became apparent that new codes were needed.

AIAG was selected as the standards group to complete this project and later approached by the ECG, that was working at the same standardisation issue in Europe to make the codes applicable both in North America and Europe and ensure that the codes can be used internationally

“The vehicle damage codes are presently being used by all North American OEMs as well as by more than 600 vehicle inspectors," said Morris Brown, AIAG programme manager in Southfield, Michigan. "Now with the introduction of the global standard, we looking forward to seeing the adoption of this standard grow on a global basis.”

Mark Morgan, ECG's executive director in Brussels said: “We are delighted that the Global Damage Code is now a reality. This will help finished vehicle logistics operators to improve the quality of the serviced rendered by cutting any possible mistake in reporting damages while keeping under control the administrative cost.”

AIAG is a not-for-profit organisation where for more than 25 years, OEMs, suppliers, service providers, government and academia have worked collaboratively to drive cost and complexity from the supply chain via global standards development and harmonised business practices.

Members include OEMs such as Caterpillar, Chrysler LLC, Daimler, Ford Motor Company, General Motors, Honda, Navistar International, Nissan, Toyota and many of their part suppliers and service providers.

ECG, established in Brussels 12 years ago, represents more than two thirds of the European finished vehicles logistics industry. Last year its 90 members from 24 countries aggregated turnover in excess of E15B with around 40M car movements.

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