I am not sure why we ended up with two threads on this topic, but I want to encourage you to also read the posts under "GM and crossline warranty."
I wanted to give some more background on the matter of cross-line warranty.
1. The Cadillac Dealer Council did not favor the measure and asked that Cadillac be excluded. (Doesn't look like that is going to come true.)
2. A representative from the Fixed Op council went to every region to explain the proposal and get feedback.
3. Some dealers have complained to NADA about the proposal. Others are saying state laws restrict it (quick somebody get Ford and Chrysler on the phone.)
4. The original idea was complete cross-line warranty ability, but that effort was scaled back in late May to the current policy (emergency, used vehicles, commercial truck fleets). This was done apparently because GM had no interest in flaring dealer tempers right now.
5. Joyce Nolan, director of warranty for GM is part owner of the policy and the pitch to dealers.
6. I am surprised we didn't hear about this earlier because I know that there are people out, maybe even members of this message board, that had dealers who were DEEPLY involved in the whole process. (Just kidding, we understand the need to keep things under your hat until GM gives the all clear.) These decisions were being made in mid-April.
7. There is very little evidence from other manufacturers and GM of Canada (who allows cross-divisional repairs) that very many customers actually will go to another dealership. Actually, in GM of Canada only 8% of claims represent cross-warranty work, with a totally open policy. It is expected this policy will have less of an impact than thought. (we'll wait and see)
8. Many customers consider the "ability" to go to another dealership as value, even though few will do it.
9. The main reason why they don't want advertising of this ability is because if your neighboring dealer does cross-line, then you'll have to follow. This would force a dealer to buy tools/training in order to compete with such advertising.
10. A dealership worry about this program involves technician's jumping to other stores. For example, say a Buick store sells a lot of program used Cadillacs. They could go out and steal a Cadillac tech for the training requirements and do much of the warranty work themselves.
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** Rob, Editor WD&S **Help is only a message post away!
robc@dealersedge.com