Gm and Cross line Warranty

[Michael White]

I am sure by now everyone has heard about GM offering restricted cross line warranty. Its going to happen pretty soon. It is restricted to vehicles you have sold and emergency repairs. Is this going to make a difference to any of you? It might with us. We were involved with a GM 2000 merge and use to have Cadillac. I anticipated this and did not return my Cadillac tools. We meet GM training standards for Cadillac from 1998 and back. Since we are the same corporation, I am wondering if we will be able to do warranty repairs on Cadillacs on all the cars we sold when we were a Cadillac dealer. We already do about $50K in Cadillac service business a month now, without warranty work. One of the things they mentioned is advertising and marketing this is forbidden. If we sell a Cadillac, can we tell them we can do warranty on it inhouse? Is this not marketing.? It will be interesting to see what all the final rules are when the bulletin comes out. Any ideas from all of you?
We are also open on Saturdays: One of the few GM dealers in our area that are. Is there an advantage marketing Saturdays to all the other franchises? Would Satudray repairs be considered emergency repairs when no other GM dealer around is open?? I wonder what we will be able to do/say?
Mike

[robc]

Of course this is my lead story for the July 31 newsletter.

The main idea I think to get here is that GM appears very much in favor of cross-line warranty work, as long as quality/cheap repairs are done and the customer is happy. In many people's opinion (and maybe GM's) if the "best" store in town doesn't sell Cadillacs then why shouldn't the customer be allowed to make a decision where s/he'd like to have their vehicle serviced?

So, when it comes to marketing, and when you can - when you can't do work, how much enforcement do you think GM is really interested in having? Sure they say the "PC" thing to make dealers happy in the letter, but if I were them I'd be thinking, "OK guys go fight it out and let's see which one of you can really take care of the customer."



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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[jwise67]

I HAVE BEEN WAITING FOR THIS. WE LOST CADILLAC WHEN WE WERE BOUGHT OUT IN APR-00.
THIS WILL GIVE US THE OPPORTUNITY TO STILL WORK ON CADILLAC. WE STILL HAVE ALL THE TOOLS AND THE TECHS ARE HIGHLY TRAINED. WE ARE NOT A GMC FRANCHISE, BUT HOPFULLY WE CAN DO REPAIRS ON GMC. TRY TO EXPLAIN TO CUSTOMERS WHY THEY HAVE TO GO TO A DEALER 30 MINS AWAY FOR A RECALL, WHEN WE DO THE SAME RECALL ON CHEV'S. I CAN'T WAIT TO SEE THE BULLETIN!

[jargonaut]

Sounds to me like a new survivor series on television and Darwin was right!!!

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Alan

[sallen1]

It's still not a 'done' deal, yet. The process has moved from full 'cross-line' to what Michael White described. In the end, it will be 'emergency' based (who defines that) and the ability to work on your own used vehicles no matter the brand (xcept Saturn, Saab, Hummer, etc).

My issues is this: will we be able to work on used cars AFTER we sell them? Seems reasonable. There's also no requirement for training and/or tools. You guys will have fun with the NorthStar, 4T-80E, Stabilitrac, Magnasteer, CVRSS, etc.

Then again, we'll enjoy the trucks and Covettes the local dealer can't fix.

Oh well, another manifestation of a relatively good idea (full cross line warranty) mired down by factory and dealer bickering.

If you don't like any of this, let you dealer council rep. know right away.

scott

ps. They also don't want us advertising for warranty repairs. Does any of you currently do this?

[rick]

i think that this is great for customers which will be great for us. how many of our customer have other gm products that they take to other dealers. now i have a way of offering keeping that business here. recalls have always been a problem being a gmc dealer vehicles are alike but we have to tell them to go to chevy.

[Michael White]

Sallen, its good to hear from you again. In our case, I welcome the ability to do Northstars (I do 2 or 3 a month now), and all of the other Cad business you mentioned. I have 2 techs you are very experienced with Corvette powertrains as well. But I will save the Cateras for you. Granted I will be able to be somewhat selective. The Cad dealer as many challenges they are trying do deal with. Gettin more Cad business from the Cads we sold before our merge should be simple.

I have also been told even now if you arfe a GMC dealer, you can perform a recall on a Chevy truck and will get paid for it. I have one in the shop and will try. No one has mentioned this yet!!

I think it is good for dealer relations not to allow advertising. I think there could be some real cutthroat dealer problems. But maybe that is what GM wants.

I do aggree with youhowever. If you do not have the experiences and know-how you really should not do the work. Cad stuff is more unique than any of the other franchises. We are just unique. Considering the cost and frequency of warranty repairs, its money in the bank.
Mike

[BillH]

HI all,
In response to the issue of GMC-Chevy warranties; we are a GMC Medium Duty and Commercial dealer, yet prior to the new designations we were able to do warranty work on the light duty Chevy trucks and experienced no difficulties. You should be able to submit these claims now and expect prompt payments!
Thanks everyone for all the help!
-BillH