GM Courtesy Transportation

[Alan Nicholson]

Admin message 19990015, now requires wholesale authorization on any rental 4 or more days. Seems that GM is getting sick of their rental program and is trying to back out a little at a time. Our DSM is really resisting requests for 6 or more days now. I would like to hear from you guys, are your DSMS resisting and complaining about your rentals. Are you having problems getting engine repairs, water leak repairs out within 5 days or less. How will this policy effect your store? Would be nice if we could only allow for major repairs, problem repairs, to occur only on a Monday. Please let me hear from you.


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Alan1149@aol.com

[MARY SHERICK]

JOIN THE CADILLAC CLUB. THEY WERE THE FIRST. GM IS NOT TRYING TO GET AWAY FROM THE PROGRAM, THEY ARE JUST TRYING TO FORCE DEALERS TO PAY FOR "LOANER" CARS. WITH CADILLAC, IF THE CUSTOMER DEMANDS A CAR FOR A MIRROR REPLACEMENT, YOU HAVE TO GIVE THEM A SAME DAY RENTAL FOR A .2 HOUR REPAIR. IF YOU HAVE TO KEEP A CAR OVERNIGHT DUE TO PART NOT IN STOCK, YOU THEN HAVE 2 DAYS. THE DSM'S IN THIS AREA HAVE NOT BEEN AUTHING ANYTHING OVER 4 DAYS WITHOUT A TECH ASSIST OR CADSTAR CASE NUMBER, CSO3 PART ORDER NUMBER, ETC. THEN YOU HAD BETTER HAVE A GOOD EXPLANATION TOO. THEY ALSO HAVE BEEN CROSS-CHECKING TECH TRAINING AGAINST THE TYPE OF REPAIR PERFORMED. WE USE A DAY-BY-DAY DETAIL SHEET FOR THE TECH TO RECORD WHAT HAPPPENED WHEN, CASE NUMBERS, ETC. IF A PART GOES ON BACKORDER, YOU HAD BETTER HAVE THE SPAC CASE NUMBER TOO. I HAVE FOUND IT IS EASIER TO TELL ALL TECHS AND SA'S THAT THE FORM MUST, MUST, MUST BE ON THE RO FOR ANY CAR THAT IS NOT DONE BY DAY THREE, AND THEY HAVE TO LET THE SERVICE MANAGER KNOW ALSO. CYOA IS THE ONLY WAY TO WIN THIS BATTLE. IF YOU HAVE THE PAPER TRAIL, THEY WILL GENERALLY PAY THE CLAIM. THE REASON THEY ARE DOING THIS IS BECAUSE THE CADILLAC IMPLEMENTATION SHOWED THEY COULD REDUCE THE RENTAL COSTS. GM DOES NOT CARE IF THE CARS ARE FIXED FASTER, AS LONG AS THEY DON'T PAY ANY MORE RENTAL THAN THEY HAVE TO. THE INTERESTING PART IS THAT IF YOU HAVE TO OVERNIGHT ORDER PARTS, YOU CANNOT GET FREIGHT REIMBURSEMENT IF THE RENTAL BILL IS MORE THAN TWO DAYS WITHOUT WHOLESALE AUTHORIZATION. ALSO, YOU HAVE TO HAVE WHOLESALE AUTH FOR ANY FREIGHT CHARGES OVER 100.00. THAT WON'T COVER FREIGHT COST ON A SRTA, EVER.

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[robc]

Certainly rental expense is something GM would rather do without, but I believe this change was more to unify the old divisional policies. Reps can't keep seperate Cadillac/rest of GM policies in their head, so one of the two had to change. It obviously makes more economical sense for GM to go to the Cadillac format (4 days or more need auth).

There will come a day in the not too distant future where GM will demand that dealers have a greater participation in the program. I can see the bulletin in my head now ... instead of GM paying for all courtesy trans, they'll call it a "supplement" to the dealer's offer of loaners.

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

[Alan Nicholson]

Rob, if GM is trying to unify the divisional policies concerning courtesy transportation, why would they leave the "same day rental for Cadillac", $35.00 per day reimbursement, and $45.00 for high expense Cadillac dealers? It was my understanding also, that the Cadillac Division, would have only Cadillac DSMs. I really think GM is getting sick of the expense, and it is all about the bottom line. And I totally agree that one day GM will push this great decision on to their dealers.


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Alan1149@aol.com

[MARY SHERICK]

IN REGARD TO ALAN'S COMMENT ON REIMBURSEMENT RATE. EFFECTIVE JAN 1,1999, IF THE CADILLAC RENTAL IS PROVIDED BY ENTERPRISE, THE REIMBURSEMENT RATE IN NON-HIGH EXPENSES AREAS IS NOW 37.00. WHILE THE PERSONAL NATURE OF MY COMMENT SHOWS MY RESENTMENT. LET US ALL REMEMBER THE BLURB THAT STATES THAT COURTESY TRANSPORTATION IS NOT PART OF THE WARRANTY, BUT A SEPERATE GOODWILL PROGRAM THAT CAN BE DISCONTINED AT ANY TIME. WHEN THAT TIME COMES, GUESS WHO IS LEFT WITH THE ANGRY CUSTOMERS. YOU GOT IT. I HAVE BEEN TOLD BY SEVERAL FACTORY REPS THAT GM EXPECTS 10% OF THE TARGETED WARRANTY EXPENSE REDUCTION TO COME STRAIGHT FROM THE DEALERSHIPS. TALK ABOUT SETTING REPS UP TO GO GUNNING FOR BEAR. WHEN THEIR PERFORMANCE BONUS IS BASED ON CSI AND WARRANTY EXPENSE CONTROL, WHAT DO YOU THINK THEY WILL ATTACH FIRST? SINCE RENTAL ISSUES ARE OFTEN GRAY AREAS, DUE TO THE LANGUAGE CITING THE ABILITY TO GOODWILL SAME-DAY IF NECESSARY AND UNDUE HARDSHIP ETC. YOU CAN BE CHARGED BACK BECAUSE YOUR REP DOES NOT AGREE WITH YOUR DECISION, EVEN THOUGH IT MAY MEET GUIDELINES. THIS IS AN AREA ALL STORES SHOULD TRACK CAREFULLY AND COVER YOURSELF WITH A GOOD PAPER TRAIL.

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[jrcal]

Mary, The idea of a worksheet attached to the shop copy of the RO sounds like a workable idea to me. One question, what do you do about the extra day or so of rental that the worksheet shows because the customer did not pick up their vehicle until the next day? Is the rep understanding about this or are they "strictly by the book?"

thanks,

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JC

[robc]

Good thought, and to clear up two earlier points ... Cadillac does not have their own reps. In fact, having non-Cadillac reps calling on Cadillac stores is probably 75% of the current problems with the field organization.

Second, Cadillac pays $37 or more because Cadillacs are provided as loaners.

The issue being, with the common BAC code, authorizations and such were set by BAC code, instead of old divisional dealer codes. That's why the opeartion restriction had to be common among all franchises.

So, if GM were to eliminate rentals, what would your dealership do?

1. Tell customers too bad?
2. Provide your own "no-cost" loaners
3. Try to make rental vehicles affordable for customers (say $10-15 per day)

Just wondering ...

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

[MARY SHERICK]

IN ANSWER TO THE CUSTOMER NOT RETURNING RENTAL WHEN DONE, WE TELL THEM WHEN THEY GET THE RENTAL THAT THEY WILL BE RESPONSIBLE FOR ANY RENTAL CHARGES AFTER THE END OF THE DAY THIER CAR IS DONE. WE SOMETIMES HAVE TO POLICY A RENTAL DAY HERE AND THERE, BUT IF IT IS EXPLAINED BEFORE THE RENTAL GOES OUT, THEY CAN'T SAY THEY DID NOT KNOW. ROB IS CORRECT ABOUT THE 37.00 ALLOWANCE FOR ENTERPRISE OWNED CADILLACS. WHAT I MEANT WAS THE PROVIDED RENTAL CAR MUST BE A CADILLAC. SINCE ALL THE REPS NOW COVER ALL DIVISIONS, THIS WILL TAKE SOME TIME TO ADJUST TO. IF YOU ARE MAKING GOODWILL POLICY DECISIONS REGARDING RENTALS, THE REPAIR ORDER HAD BETTER STATE IT, AND HAVE THE SERVICE MANAGER SIGNATURE WITH AN EXPLANATION OF WHY. IF YOU DON'T, WATCH OUT!!

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[jrcal]

Rob, in response to your question of what will we do if GM does away with the rental cars? Most dealerships I have talked with are already supplementing the courtesy transportation program with their own loaner vehicle program. For example, a special customer with special needs will get a loaner car from us at the time they drop off their car for repairs. If the car qualifies for rental from GM then they will bring back the loaner car and get the rental car from Enterprise. We try to limit this practice but when you get a problem customer this is the easiest way to make them happy. Sometimes, if a loaner car is not available, we will go ahead and policy a rental car until the courtesy transportation program is allowed. So in one way, a lot of dealers are already supplementing GM's rental car program costs even though it is not our program to begin with.

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JC