cross warranties

cross warranties

Postby jimmonte » Mon Jul 31, 2000 7:35 pm

i would like to know if any other gm service
managers would like to be able to repair all gm cars under warranty even the ones you dont sell? i have a caddy,buick,pont,gmc store 100 ft away and find that i could save money on tools and training except maybe for caddy, the rest share the same tools and manuals etc.
anyone else feel a need for this?
jimmonte
 

cross warranties

Postby cgolden » Mon Jul 31, 2000 11:30 pm

Jim,
I wonder if it is in the best interest of the customer and the dealer? I believe in merchandising of maintenence items, but to try to sell warranty does not work for me. It seems that the customer would be most likely to get it fixed right the first time at the franchise that handles those repairs.

[This message has been edited by cgolden (edited 07-31-2000).]

cgolden
 

cross warranties

Postby gman » Tue Aug 01, 2000 9:32 am

We could begin to repair every line except Cadillac today. Caddy would take a bit more training and an investment in special tools.
(one we would be glad to make) We are expecting a dramatic increase in business when this occurs as we have several dealers in our area who could do a much better job for their customers. They very much exhibit a "captive market" mentality in regard to customer satisfaction. It won't take customers long to determine who can meet their needs and who can't.

Competition will make us all better at what we do.
gman
 

cross warranties

Postby warr_wiz » Tue Aug 01, 2000 6:59 pm

I think the competition would certainly bring out the best in all dealers but at what price. There will not be a major investment required in tools and training, but I am sure it could be major to some dealers. I also noticed in an admin messege that the cross warranty would be valuable in an "emergency" situation. I am pretty confident that the customer has a very different interpretation of what is an emergency and what GM (or any manufacturer for that matter) considers an "emergency."
warr_wiz
 

cross warranties

Postby robc » Thu Aug 03, 2000 12:23 pm

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.




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


Return to Service & Body Shop Managers

Who is online

Users browsing this forum: No registered users and 16 guests