GM WARRANTY ADMIN

[PEZEK]

JUST CURIOUS IF ANYONE OUT THERE HAS AN OPINION ON IF GM WOULD POSSIBLY EVER PUT THEIR OWN WARRANTY ADMINISTRATOR IN EACH DEALERSHIP...?

[callbob]

Are you serious? I heard they were doing so but the got caught in the chimney. If you really think they would do this I have a bridge for sale.

[PEZEK]

SERIOUS? WHY NOT-HOW MANY THOUSANDS OF CLAIMS COULD BE STOPPED-HOW MUCH MONEY DOES GM WANT TO SAVE ANYWAY? THE MOST COST EFFECTIVE REPAIRS WOULD BE DONE. SHOP COMEBACKS WOULD NOT BE SUBMITTED... BUT HEY, TRY SELLING THE BRIDGE SOMEWHERE ELSE.

[This message has been edited by PEZEK (edited 12-19-2002).]

[robc]

In each and every dealership? I would think never. The main reason is that some stores are tougher on themselves than GM would ever dream to be.

Consider that there are 7,500 core GM stores and because it is a GM position each administrator would have to cost them $25 - $30K per year. That's upwards of $225 million dollars ... that's a lot of write-offs to cover the costs.

Also, once a GM employee put their stamp of approval on all things related to the claim it becomes very difficult (but not impossible) for GM to question or chargeback. Since GM currently claims no responsibility in administering the dealerships warranty claims it is very easy to take money back or just let out of control dealers to write-off overage claims.

There are also a ton of things like what to do with the small stores, who is responsible for timely payment, and the thousand other tasks.

What could be more probable(although still highly unlikely) would be to put hired "babysitters" in those shops that are exhibiting problems with their claims and have high warranty expense. Cheaper and it directs efforts just to those stores that need it the most. However, our experiences with similar systems tell us their effectiveness is very low.

Interesting thought though ...

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

[This message has been edited by robc (edited 12-20-2002).]

[sheri01]

GM ADMINISTRATORS IN DEALERSHIPS? THAT FROM A COMPANY THAT STILL HAS NOT SPONSORED ANY FACTORY "FROM SCRATCH" TRAINING FOR WARRANTY CLAIMS ADMINISTRATORS. I KNOW, THEY CALL IT TRAINING, BUT IT IS COST CONTROL TRAINING, NOT THE NUTS AND BOLTS OF THE PART NUMBERING SYSTEM AND HOW IT DOES NOT RELATE TO THE LABOR TIME GUIDE, LET ALONE ADDRESS THE ISSUE OF "REAL WORLD" TERMINOLOGY VERSUS GM ( IS IT AN ALTERNATOR OR A GENERATOR? THE TECH AND GM LTG WILL GIVE YOU 2 DIFFERENT ANSWERS). IT IS MY OPINION THAT IT IS EASIER FOR GM TO HOUND THE ASM'S TO HOUND AND INTIMIDATE DEALERS IN HIGH EXPENSE AREAS, THROUGH THE DEALAER SELF ANALYSIS PROCESS TO SELF-DEBIT CLAIMS THAT ARE PERFECTLY VALID. DO IT TO ENOUGH DEALERS, AND YOU GET A PRETTY HEFTY CHUNK OF CHANGE BACK. THEN AGAIN, IF GM CAN'T INTIMIDATE THEM, SEND THE ASM'S TO SCRAP PARTS AND NITPICK SIX MONTHS OF CLAIMS. SAME END RESULT. SINCE GM HAS THE MOST IMPRECISE CODING SYSTEM, AND ARE CURRENTLY EXPERIMENTING WITH TIME STUDIES VIA STRAIGHT TIME ON NEW MODEL VEHICLES( IE: CTS) THAT THEY HAVE SET THE DEALERS UP ALREADY. THEY DO NOT NEED THE ADDITIONAL PAYROLL EXPENSE. THEY ALREADY HAVE THE DEALER COVERING THAT. OH YEAH, BY THE WAY, YOU HONORED THEIR RESPONSIBILTY TO PROVIDE THE WARRANTY REPAIRS TO THE CUSTOMERS CAR TOO, FOR FREE! THIS IS THE SAME COMPANY WHO GOT RID OF ALL ADMINISTRATIVE SUPPORT AT THE MARKET AREA LEVEL, SINCE THE ASM'S HAVE SO MUCH FREE TIME BETWEEN THE THOUSANDS OF BATTERY AND RENTAL CLAIMS REQUIRING REVIEW, NOT TO MENTION STRAIGHT TIME IN EXCESS OF TWO HOURS, AND THEY ARE GOING TO DEVOTE MORE PEOPLE ON-SITE? I DOUBT I WILL LIVE TO SEE THE DAY. THE CURRENT SYSTEM IS ALREADY SKEWED IN GM'S FAVOR, AND UNLESS THE DEALER HAS A PROPERLY TRAINED DEDICATED CLAIMS ADMINISTRATOR WHO KNOWS HOW TO BEAT THEM AT THEIR OWN GAME, WITH THEIR OWN RULES, THE DEALER IS A SITTING DUCK, JUST WAITING FOR THE NEXT TIME THE NUMBER CRUNCHERS AT GM PASS THE WORD TO FIND "EXCESS EXPENSE DOLLORS"

[NetProfits]

Sheri01....Stop reading my mind . Very well stated. Identical to my thoughts.

[jargonaut]

Back in 1980 I worked at the largest Dodge dealer in the country as warranty administrator and the dealer actually had an on premises full time Rep from Chrysler which blew my mind but I really doubt he could have done claims!!