DealersEdge Professional Forums

Boys and girls get a load of this..................crap..............

Warranty "Exchange" on a Duramax Diesel Engine.

I get a $400 allowance "IF GRANTED" instead of my normal parts warranty markup (which by the way is cost plus 81%) so the General cost me over $5,600 in gross. Guess I need a big block of cheese to go with my whine/wine......

From: My GM REP
Sent: Monday, August 07, 2017 3:56 PM
To: Field quality & Reliability Engineering
Subject: Request Action SR _8-30769**** Part # 12679079

On this case, the dealership has installed the engine that was sent. However, the replacement engine did not invoice and noted ‘exchange’. Does this mean GM will not be charging the engine to the dealership and there is not a part to charge out on the warranty claim? Is this normal? This impacts the Parts and Service Manager’s numbers they professed my way.

Thank you for taking the time to look into this.

Field Rep's Reply:

Sent: Tuesday, August 8, 2017 12:42 PM
To: My GM REP
Subject: RE: Request Action SR _8-30769**** Part # 12679079

Yes, there should be no parts charge for the engine on the claim. The engine was shipped direct to the dealer and they will not be billed. If they are concerned about losing the parts markup on the part, a $400 allowance can be granted for exchange components.

Hope this helps!

Assistant Manager
Field Quality and Reliability Engineering

WOW. Kinda like a retail customer bringing their own parts in to have the service dept. install.

or like dealing with an "extended warranty" company where they allow $100 for processing the return of the core !! What's the difference in dealing with the General, again ??

As I have learned with the general "They are not happy until their dealers are unhappy"
Put the screws to the dealership whenever they can.

I would charge GM for the engine plus markup and then let them take it away later.

You get the markup as a net item, but do not bill the part itself as you are not invoiced for it.

Service P&P:

ARTICLE 2.1 - REIMBURSEMENT FOR PARTS:
f. GM Supplied Parts - Handling Allowance Policies
From time to time GM may directly supply Service Agent with parts for repair of a vehicle. In
such cases, Service Agent is entitled to an appropriate handling allowance of what the Service
Agent would have received if the part was ordered through GMCCA.

This is why we should be paid for LPO's too, but that's a non-DFOAB SALES program

Thanks possum, just fired email out to my Rep. waiting to see what response I get back on that.

"Service Agent is entitled to an appropriate handling allowance of what the Service
Agent would have received if the part was ordered through GMCCA"



So is the $400 mark up they are allowing equal to the markup on the engine if you bought it yourself? I doubt it.

Sounds like GM talking out of both sides of their ass again

preston705 wrote:Thanks possum, just fired email out to my Rep. waiting to see what response I get back on that.

We usually bill out the part (just for reference) at a cost of $0 and sell of whatever the markup would have been (ours is 55%)

whatever you do make sure the payment goes to your warranty parts sales (ours is 480)

You all will begin to see more and more of this even on other products that are not engines or transmissions. GM spouted off about this several years ago that they really did not want "Dealership" Service Departments, what they really want is GM Service Departments located at "specific" Dealerships. Go back and do the research and you will find it somewhere close to the time they were coming out of BK. So, what can you read into this kind of structure? Repeat after me, Venezuela. And yes, they are that stupid.