I just saw this posted on another site and thought that I pass it on.
May 2, 2003
To: All Ford and Lincoln Mercury Dealer Principals and Service Managers
Subject: Ford Motor Company Warranty Coverage Clarification
THE FORD MOTOR COMPANY POSITION ON VEHICLE MODIFICATIONS
We all want to do the right thing for our customers, and for the Ford Motor Company - that is why it is important to have a clear policy with regard to warranty administration. For vehicles that are not modified, the warranty policy is clear--we back our products within the guidelines of the new vehicle limited warranty, which is designed to protect the customer from defects in workmanship and/or material. However, in the case of vehicles that have been modified, the modifications may affect warranty coverage. This is because damage or failures of the new vehicle components CAUSED by modifications to the vehicle are not defects in "factory supplied" workmanship or material.
STATEMENTS OF COVERAGE
Ford states clearly in the Warranty Information Booklet provided with every new vehicle in the chapter "WHAT IS NOT COVERED?"
"Damage Caused By:
Non-Ford parts installed after the vehicle leaves Ford's control. For example, but not limited to, cellular phones, alarm systems, and automatic starting systems, and performance-enhancing powertrain chips"
And also in the chapter "OTHER ITEMS AND CONDITIONS NOT COVERED"
“Your New Vehicle Limited Warranty” also does not cover:
Non-Ford parts of your vehicle, for example, parts (including glass) installed by body builders or manufacturers other than Ford, or damage to Ford components caused by the installation of non-Ford parts other than "certified" emission parts.
Ford Motor Company will be updating the 2004 model year Warranty Information Booklets with additional language to clarify this information to owners.
TYPICAL MODIFICATIONS THAT MAY CAUSE WARRANTY DENIAL
Some non-Ford modifications that may cause damage to the vehicle for which warranty protection might be denied include:
Power chips or unauthorized re-programming of the module that modify the original powertrain calibrations, supercharger or turbo-charger installations, under drive pulleys to engine front accessory drives, transmission "shift kits," low restriction air intake and filter systems, low restriction exhaust systems, Nitrous Oxide systems (gas engines) and Propane systems (diesel engines), final drive axle ratio changes, alterations to fuel systems and wiring harnesses.
Although the installation of these non-Ford parts and after-market modifications, by themselves, will not void the New Vehicle Limited Warranty, failures of the vehicle's engine or transmission or other components that are the result of these parts and/or modifications may result in a denial of warranty for the Ford component that failed or damage that results.
DEALER INSTALLATION AND MARKETING OF THESE COMPONENTS, CLEAN AIR ACT
Dealers who are installing these power enhancement and unknown performance enhancing devices may incur the liability for the effect on federal and state emission compliance and should make customers aware that the addition of these devices may cause failures of drivetrain components that may not be covered under the Ford New Vehicle Warranty. Section 203(a) of the Clean Air Act defines the prohibition against tampering with vehicle components that may effect emissions. Section 205 of the Clean Air Act defines dealer tampering as subject to civil penalty of up to $31,500 per violation.
Ford Motor Company strongly suggests that dealers do not install or market components that may cause damage to the vehicles components.
EFFECTS OF MODIFICATIONS ON PRIOR APPROVAL
Engine and Automatic transmission assembly replacements for which Ford Motor Company is participating in the repair (Bumper to Bumper, Service Part Warranty, and After Warranty Adjustments) require prior approval by the Ford Technical Service Hotline, with the exception of ESP and FSAs which may require separate approval. The Hotline Service Engineers are skilled and knowledgeable about the various kinds of non-Ford parts (and any parts - Ford or aftermarket - designated for "off road use only") and modifications that can potentially affect engine, transmission and other vehicle systems. Where evidence of such part or modifications exists and the failure or damage is the result of such part or modification - Warranty coverage will likely be denied for the repair.