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I am currently in the process of a DSR. Warranty expenses appear to be higher than our peer group. That is not the concern that worries me, my AVM has told me on his next visit he is going to do a joint warranty contact and review warranty expense. An added note, a regional warranty specialist will be visiting with him.

Does this sound like he is trying to help me or just charge back warranty dollars?

What manufacturer are you dealing with?

General Motors, Cadillac-GMC

probably both, with an emphasis on some charge backs. GM is obviously searching for money anywhere possible. i just went thru a DSR, the first one i've had to do in the 10 years i've been at this dealer. i came out with zero charge backs. my rep indicated that there is a focus on this right now.
hopefully, your documentation is good, resulting in minimal to zero chargebacks.

Warranty costs are high = visit from warranty specialist. So the high costs should be your focus or concern ... and whatever you do don't tell your rep or the warranty guy that you don't care about the costs, because then they know they really need to get your attention. Reps want to hear gameplans, actions, steps to correct - whether they are meaningless or not - it makes them happy and keeps them off your back.

Moneywise it could be a matter of who you have. What region are you in and I can weigh your chances a little more.

Generally I expect you're losing about $1,500. It might be nothing, it might be $4,000 ... anything more than that would usually be involved in a more formal visit.

Step 1: Verify with the rep what observation period you're in 1, 2 or 3 ... if you're in 1 this shouldn't be a big deal.

Step 2: Ask you rep if he's going to send a list of claims to pull before hand. You can very quickly know where they are going once you get the list (ie, what types of repairs, mileage of vehicles, in-stock, etc.)

Step 3: In a backhanded way I always ask what the "S" stands for in DSR. I mean the whole point of the DSR is for dealers to do an honest assessment of their own processes without involvement of GM - that just makes everyone defensive.

Step 4: If it were me, depending on what is in the DSR, I'd say great - you can do this thing for me while you're here. Then you know what they are going to look at.

Oh and I guess if nothing else - buy our book: http://www.dealersedge.com/GQ.htm or http://www.dealersedge.com/WAG.htm. Both are a little dated, the basis of the DA, DSR and observation periods are the same.


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** Rob, Editor Dealersedge/WD&S **
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robc@dealersedge.com