Is GMPP fair?

[David Henson]

I was doing some research for a story and stumbled across something that I really didn't know and wanted to get input from some of you.

First (and this I did know), GMPP allows several independent shops (Firestone, Goodyear, AAMCO, etc.) to perform repairs under their contract coverage. The independent just gets approval and faxes the completed RO for payment.

What I was surprised to learn is that the independents don't have to use factory time allowances and instead get times from either Chilton or Mitchell.

The only concession they make is to do the work at a lesser rate than their retail rate (same thing the dealer does) but they still get paid a higher allowance for the same repair.

It seems ironic being that dealerships have a considerable investment in technicians, overhead, training, equipment, rent, advertising, etc. that independents would be given favor when performing the same repairs. This is compounded when you consider that few, if any, independents sell their contracts therefore generating profit and creating the opportunity in the first place.

Is it just me, or is this fair?

[robc]

GMPP/MIC policies are consistent with any other service contract and other major manufacturers. I believe their reasoning is for the exact reasons you gave, the dealer has the training, tools and techs to do these repairs as efficiently as possible, therefore they pay at the factory approved time standard. And, non-dealers can sell MIC aftermarket contracts (MRP). However, what I did have problems with (and this isn't restricted to MIC only) is when dealers are forced to accept factory time for a non-nameplate repair. For example a Chevrolet store doing a repair on a Ford, usually must accept Ford labor standards.



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

[JerryM]

The non-nameplate issue is a BIGGIE for us. We are also a HUMMER (AM General) dealer. How do you justify paying a tech the labor time for a GMC K truck transfer case in a Hummer? All I can do is utilize my 1 hour OLH that GMPP allows and specify "Remove underbody protection"!!

[David Henson]

Some tell me that they are "justifying" it by selling another contract!

[Eric]

In response to Rob's comment "the dealer has the training, tools and techs to do these repairs as efficiently as possible, therefore they pay at the factory approved time standard". However, the dealer pays for all the equipment, training, etc. and certainly deserves to be paid as much as his competition for doing the same job.

[KZSOUTHGAL]

I did not know that the aftermarket competition could use Chilton's or Motor's manuals.

This is definitely NOT fair to us dealers who spend tons of money each year on equipment and training and then take such a hit on the labor and parts for the GMPP rate.

NOT FAIR... NOT FAIR.... NOT FAIR at all !!!!1

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KZ

[jeff harkey]

I THINK THIS STINKS AND WILL BE IN CONTACT WITH MY GMPP REP. WE ALL NEED TO VOICE OUR APINION.SEND LETTERS AND MAKE PHONE CALLS.

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[This message has been edited by jeff harkey (edited 10-19-1999).]

[lovemotors]

I agree with Jeff and David. We need to voice our opinions. I also agree that it is not fair that we are required to spend ton's of money on training and tools only to find out that the independants are being paid more than we are.......
Bad news

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Love Motor's in Monterey,Ca. Single line dealership. Chevrolet only.

[GreggT67]

As far as I'm aware, most of the other manufacturers don't "authorize" independents to do repairs under their service contract. I think GM is the lone wolf on this one.