For 1990-2009 cars

# WARRANTY ADMINISTRATION DEALER/RETAILER ADMINISTRATION

THIS BULLETIN IS BEING REVISED TO INFORM "GM OF CANADA" AND "NAES" DEALERS THAT THEY ARE NOT AUTHORIZED TO UTILIZE THIS SERVICE BULLETIN

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"GM OF CANADA" AND "NAES" DEALERS ARE NOT AUTHORIZED TO UTILIZE THIS SERVICE BULLETIN.

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#### SUBJECT: WARRANTY ADMINISTRATION -- DEALER/RETAILER ADMINISTRATION OF CASE-BY-CASE INDIVIDUAL GOODWILL ADJUSTMENTS

#### MODELS: GENERAL MOTORS PASSENGER CARS AND TRUCKS

ALL GENERAL MOTORS MARKETING DIVISIONS (EXCEPT GM OF CANADA)

#### ATTENTION:

SERVICE MANAGER/WARRANTY CLAIMS ADMINISTRATOR

THIS BULLETIN CONTAINS ADDITIONAL DETAILS OF THE AUTHORIZATION EMPOWERMENT CHANGE DESCRIBED IN THE MARCH 3, 1995 LETTER MAILED TO ALL GENERAL MOTORS DEALERS/RETAILERS ON THE SUBJECT OF COMMON CASE-BY-CASE GOODWILL ADJUSTMENT EMPOWERMENT, EFFECTIVE MARCH 15, 1995. THE NEW COMMON MAXIMUM AUTHORIZATION EMPOWERMENT LIMIT SUPERSEDES ANY PRIOR DIVISIONAL CLAIM AUTHORIZATION EMPOWERMENT LEVELS THAT MAY HAVE EXCEEDED THE NEW MAXIMUM AUTHORIZATION EMPOWERMENT LIMIT DESCRIBED IN THIS BULLETIN.

MOVING IN THE DIRECTION OF COMMON DEALER/RETAILER GOODWILL ADJUSTMENT CLAIM AUTHORIZATION EMPOWERMENT IS PART OF GENERAL MOTORS CONTINUING EFFORT TO ELIMINATE WASTE AND MAKE ADMINISTRATION EASIER FOR DEALERS/RETAILERS AND DIVISIONS. IN ADDITION, DEALERS/RETAILERS HAVE REQUESTED A MORE COMMON APPROACH TO AUTHORIZATION EMPOWERMENT AND GUIDELINES. WHILE THE MAXIMUM LEVEL OF DEALER/RETAILER GOODWILL ADJUSTMENT AUTHORIZATION EMPOWERMENT HAS BEEN UNIFORMLY IMPLEMENTED, THE CRITERIA FOR ESTABLISHING AUTHORIZATION EMPOWERMENT WILL CONTINUE TO BE DIFFERENT BY DIVISION AT THIS TIME.

LISTED BELOW IS THE DEFINITION FOR GOODWILL ADJUSTMENTS, GENERAL ADMINISTRATIVE GUIDELINES, IDENTIFYING THE FACTS AND DIVISION CLAIM AUTHORIZATION EMPOWERMENT INFORMATION.

DEFINITION

INDIVIDUAL, CASE-BY-CASE, GOODWILL ADJUSTMENTS ARE INTENDED TO RECOGNIZE THAT CIRCUMSTANCES, OUTSIDE THE PARAMETERS OF THE WRITTEN WARRANTY, MAY EXIST WHERE SPECIAL CONSIDERATION IS IN ORDER TO ENHANCE CUSTOMER SATISFACTION AND LOYALTY. SUCH GOODWILL ADJUSTMENTS SHOULD NOT BE CONFUSED WITH SPECIAL POLICY ADJUSTMENTS PROVIDED TO ALL INVOLVED OWNERS THROUGH A SPECIAL BULLETIN AND DIRECT MAIL. CASE-BY- CASE INDIVIDUAL GOODWILL ADJUSTMENTS ARE NOT LEGAL OBLIGATIONS LIKE THE TERMS OF GENERAL MOTORS WARRANTIES.

GENERAL ADMINISTRATIVE GUIDELINES

*MAXIMUM DEALER/RETAILER AUTHORIZATION EMPOWERMENT, COMMON TO ALL GM DIVISIONS, IS UP TO 2 YEARS/24,000 MILES FOR NON-PAINT CONDITIONS AND UP TO 2 YEARS/UNLIMITED MILEAGE FOR PAINT, BEYOND THE LIMITS OF THE BUMPER TO BUMPER BASE NEW VEHICLE WARRANTY. MAXIMUM AUTHORIZATION EMPOWERMENT REGARDING GMC AND CHEVROLET MEDIUM DUTY TRUCK AUTHORIZATION EMPOWERMENT WILL BE 2 YEARS UNLIMITED MILEAGE FOR BOTH NON-PAINT AND PAINT DUE TO THE UNLIMITED MILEAGE BASE WARRANTY.

*SOME DEALERS/RETAILERS MAY BE EMPOWERED TO LIMITS LESS THAN THE MAXIMUM WHILE A FEW SELECT DEALERS/RETAILERS MAY NOT BE EMPOWERED AT ALL. INDIVIDUAL DEALER/RETAILER AUTHORIZATION EMPOWERMENT LEVELS ARE SUBJECT TO CHANGE UPON DIVISIONAL NOTIFICATION.

*ANY CLAIM INVOLVING "INDIVIDUAL GOODWILL ADJUSTMENTS" SUBMITTED AFTER THE EFFECTIVE DATE OF MARCH 15, 1995, WHICH EXCEEDS THE DEALER/RETAILER GOODWILL ADJUSTMENT AUTHORIZATION EMPOWERMENT LIMIT WILL REQUIRE WHOLESALE REVIEW AND AUTHORIZATION. THIS INCLUDES WORK IN PROCESS FOR WHICH YOU MAY HAVE ALREADY COMMITTED TO PERFORM.

*BUMPER TO BUMPER BASE NEW VEHICLE WARRANTY COVERAGE DOES NOT INCLUDE CURRENT AND PAST MODEL YEAR WARRANTY COVERAGE'S ON SPECIFIC COMPONENTS THAT CARRY WARRANTY COVERAGE LONGER THAN THE BASE NEW VEHICLE WARRANTY COVERAGE, I.E. "FEDERAL AND CALIFORNIA EMISSIONS WARRANTIES", "SHEET METAL COVERAGE" OR "DIESEL ENGINE COVERAGE".

*PAINT LABOR OPERATIONS EXCLUDED FROM AUTHORIZATION EMPOWERMENT - SEE BELOW:

DEALER/RETAILER AUTHORIZATION EMPOWERMENT FOR PAINT CLAIMS COVERS EXTERIOR BODY PANELS ONLY. THE FOLLOWING PAINT LABOR OPERATIONS ARE EXCLUDED FROM THE UNLIMITED MILEAGE PAINT EMPOWERMENT WHICH APPLIES TO EXTERIOR PANELS:

-A0110 - FINESSE SAND AND BUFF

-A3740 - A4260 REPLACE PAINT STRIPE

-A4340 - A4700 REPLACE DECAL STRIPE

-A5020 - A5127 REPLACE WOOD GRAIN TRANSFER

-A5541 - A5560 PAINT - CHEMICAL SPOTTING

-A5575 - A5580 RAIL DUST REMOVAL

-A7000 - A8200 INTERIOR PAINT

-A9040 - A9640 PANEL REPAIRS

IDENTIFYING THE FACTS

YOUR AUTHORIZATION EMPOWERMENT SHOULD BE EXERCISED WHEN IT APPEARS THAT THE CONDITION COULD BE THE RESULT OF A DEFECT IN MATERIALS OR WORKMANSHIP RATHER THAN CONDITIONS OCCURRING FROM AGING, PHYSICAL DAMAGE, LACK OF PROPER MAINTENANCE OR OWNER ABUSE. VEHICLE CONCERNS SHOULD BE ASSESSED ON THEIR OWN MERITS WITHIN THE CONTEXT OF THE CURRENT OWNER'S REASONABLE EXPECTATIONS AND WITH APPROPRIATE CONCERN FOR THE COST TO GENERAL MOTORS.

IN EXERCISING YOUR JUDGMENT IN EACH CASE, THE FOLLOWING QUESTIONS ARE SOME WHICH SHOULD BE CONSIDERED:

*IS THE VEHICLE COVERED BY OTHER SERVICE OR EXTENDED WARRANTY CONTRACTS? IF "YES," REPAIRS MUST BE PERFORMED UNDER THAT CONTRACT.

*DOES THE VEHICLE SHOW A LACK OF PROPER CARE AND MAINTENANCE?

*IS THE OVERALL CONDITION OF THE VEHICLE SUCH THAT THE COST TO REPAIR WILL APPROXIMATE THE VEHICLE'S VALUE?

*IF THE VEHICLE WAS PURCHASED USED BY THE CURRENT OWNER, IS IT LIKELY THE VEHICLE EXHIBITED THE CONDITION BEFORE PURCHASE?

*DID THE CONDITION OCCUR WHILE THE VEHICLE WAS IN THE POSSESSION OF A SECOND OR THIRD OWNER AND NO VEHICLE HISTORY IS AVAILABLE?

*COULD THE CUSTOMER HAVE DONE ANYTHING TO PREVENT OR CAUSE THE CONDITION?

*HAS THE VEHICLE BEEN USED IN WAYS FOR WHICH IT WAS NOT INTENDED?

*DID THE CONDITION RESULT FROM AN AFTER MARKET CONVERSION OR ALTERATION?

*DID THE CONDITION RESULT FROM USE OF NON-GM PARTS OR ACCESSORIES?

*IS THERE EVIDENCE OF VEHICLE MILEAGE ALTERATION?

*IS THE VEHICLE CONDITION A NORMAL OPERATING CHARACTERISTIC?

*IS THE CONDITION LARGELY A RESULT OF NORMAL AGING, WEAR AND USAGE?

*IS THE CONDITION A RESULT OF UNUSUAL LOCALIZED ENVIRONMENTAL, GEOGRAPHICAL OR CLIMATE FACTORS?

*ADDITIONAL QUESTIONS WHEN PAINT CONDITION IS THE CONCERN:

-IS THE CONDITION LARGELY THE RESULT OF NORMAL PAINT AGING OR ENVIRONMENTAL DAMAGE (FADING, GLOSS LOSS, CHALKING, CRACKING, FLAKING, YELLOWING)?

-IS THE CONDITION ONLY ON A PHYSICALLY DAMAGED PANEL THAT THE CUSTOMER DECLINES TO REPAIR?

THE ABOVE LIST IS NOT INTENDED TO BE ALL INCLUSIVE. HOWEVER, IF THE ANSWER TO ANY OF THESE OR SIMILAR QUESTIONS IS "YES," THEN IT PROBABLY IS NOT A CONCERN YOU SHOULD ADDRESS AT GENERAL MOTORS' EXPENSE.

PARTIAL PARTICIPATION

IN SITUATIONS BEYOND THE WARRANTY PERIOD, BUT WITHIN YOUR CLAIM AUTHORIZATION EMPOWERMENT, CUSTOMERS HAVE RECEIVED VALUE FROM USE OF THE VEHICLE. IT WOULD BE REASONABLE TO CONSIDER PARTIAL PAYMENT BY THE CUSTOMER. THE JUDGMENT BELONGS TO YOU.

*DETERMINE WHAT THE CUSTOMER EXPECTS BEFORE MAKING AN OFFER TO ASSIST.

*EVALUATE THE REASONABLENESS OF THE CUSTOMER'S EXPECTATIONS.

*DETERMINE WHAT OFFER WOULD SATISFY THE CUSTOMER AS A FAIR AND EQUITABLE ADJUSTMENT.

*MAKE YOUR EVALUATION OF THE SITUATION THROUGH DIRECT COMMUNICATION WITH THE CUSTOMER.

*ALWAYS STRIVE FOR A MUTUALLY ACCEPTABLE AGREEMENT.

DIVISIONAL EMPOWERMENT CHANGES

BUICK, CADILLAC, OLDSMOBILE AND PONTIAC

AUTHORIZATION EMPOWERMENT FOR RETURN REASONS OTHER THAN "VEHICLE WARRANTY BEYOND TIME OR MILEAGE" WILL REMAIN UNAFFECTED.

CLAIMS SUBMITTED WITH DEALER/RETAILER AUTHORIZATION WHERE THE VEHICLE EXCEEDS THE UNIFORM TIME/MILEAGE AUTHORIZATION EMPOWERMENT LIMITATIONS WILL BE RETURNED WITH THE FOLLOWING RETURN CODE:

WC - VIN BEYOND AUTHORIZATION LIMITS

CHEVROLET

DEALER PRIVILEGES UNDER CHEVROLET'S ACCREDITED DEALER CERTIFIED SERVICE MANAGER PROGRAM (ADCSM) ARE MODIFIED AS FOLLOWS. THIS INFORMATION IS ALSO CONTAINED IN A RECENT LETTER TO ALL CHEVROLET DEALERS, EXPLAINING THE FULL RANGE OF MODIFICATIONS RESULTING FROM THIS CHANGE IN GOODWILL ADJUSTMENT CLAIM AUTHORIZATION EMPOWERMENT. THE ADCSM MANUAL WILL BE REVISED SHORTLY. QUESTIONS CONCERNING ADCSM SHOULD BE DIRECTED TO CHEVROLET'S DEALER ASSISTANCE CENTER.

1)FOR CHEVROLET DEALERS WITHIN ADCSM STATUS LEVELS 1, 2, 3, OR 4:

YOUR CLAIM AUTHORIZATION EMPOWERMENT TO MAKE IMMEDIATE CASE-BY-CASE GOODWILL ADJUSTMENTS USING THE SELF AUTHORIZATION CODE "A" WILL FOLLOW THE GM COMMON APPROACH WHICH, WITHIN ADCSM STATUS LEVELS 1,2,3 OR 4, IS UP TO A MAXIMUM OF TWO YEARS OR 24,000 MILES, WHICHEVER COMES FIRST, BEYOND THE BASIC BUMPER-TO-BUMPER BASE NEW VEHICLE WARRANTY FOR NON-PAINT CONDITIONS. FOR SITUATIONS INVOLVING EXTERIOR BODY PANEL PAINT CONDITIONS, YOUR CLAIM AUTHORIZATION EMPOWERMENT PERIOD IS A MAXIMUM OF UP TO TWO YEARS BEYOND THE BUMPER-TO-BUMPER NEW VEHICLE WARRANTY, WITHOUT REGARD TO MILEAGE. CONSIDERATION OF ANY GOODWILL ADJUSTMENT BEYOND THE LIMITS OF YOUR CLAIM AUTHORIZATION EMPOWERMENT PARAMETERS WILL REQUIRE PRIOR WHOLESALE AUTHORIZATION FROM THE CHEVROLET DEALER ASSISTANCE CENTER.

2)FOR CHEVROLET DEALERS WITHIN ADCSM STATUS LEVELS 5 OR 6:

YOUR CLAIM AUTHORIZATION EMPOWERMENT TO MAKE IMMEDIATE CASE-BY-CASE GOODWILL ADJUSTMENTS USING THE SELF AUTHORIZATION CODE "A" WILL FOLLOW THE GM COMMON APPROACH WHICH, WITHIN ADCSM STATUS LEVELS 5 OR 6, IS UP TO A MAXIMUM OF ONE YEAR OR 12,000 MILES, WHICHEVER COMES FIRST, BEYOND THE BASIC BUMPER-TO-BUMPER NEW VEHICLE WARRANTY FOR NON-PAINT CONDITIONS. FOR SITUATIONS INVOLVING EXTERIOR BODY PANEL PAINT CONDITIONS, YOUR CLAIM AUTHORIZATION EMPOWERMENT PERIOD IS A MAXIMUM OF UP TO ONE YEAR BEYOND THE BUMPER-TO-BUMPER NEW VEHICLE WARRANTY, WITHOUT REGARD TO MILEAGE. CONSIDERATION OF ANY GOODWILL ADJUSTMENT BEYOND THE LIMITS OF YOUR CLAIM AUTHORIZATION EMPOWERMENT PARAMETERS WILL REQUIRE PRIOR WHOLESALE AUTHORIZATION FROM THE CHEVROLET DEALER ASSISTANCE CENTER.

3)FOR CHEVROLET DEALERS WITHIN ADCSM STATUS LEVEL 7:

ALSO FOLLOWING THE GM COMMON APPROACH, FOR THIS LIMITED GROUP OF DEALERS, ALL SELF AUTHORIZATION PRIVILEGES HAVE BEEN REVOKED. CONSIDERATION OF ANY GOODWILL ADJUSTMENT BEYOND THE LIMITS OF THE BUMPER-TO-BUMPER NEW VEHICLE WARRANTY WILL REQUIRE A PRIOR WHOLESALE AUTHORIZATION FROM THE CHEVROLET DEALER ASSISTANCE CENTER.

GMC TRUCK

1)DEALER WARRANTY MANAGEMENT CLAIM AUTHORIZATION EMPOWERMENT PROFILES WILL BE MODIFIED TO REFLECT THE NEW TIME/MILEAGE PARAMETERS.

2)CLAIMS WITHIN YOUR DEALERSHIP'S TIME AND MILEAGE CLAIM AUTHORIZATION EMPOWERMENT DO NOT NEED TO BE SUBMITTED AS A HELP CLAIM UNLESS OTHER PROFILE PARAMETERS ARE EXCEEDED.

3)CLAIMS THAT EXCEED YOUR TIME AND/OR MILEAGE CLAIM AUTHORIZATION EMPOWERMENT REQUIRE PRIOR WHOLESALE APPROVAL FROM YOUR DISTRICT SERVICE MANAGER.

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GENERAL MOTORS BULLETINS ARE INTENDED FOR USE BY PROFESSIONAL TECHNICIANS, NOT A "DO-IT-YOURSELFER". THEY ARE WRITTEN TO INFORM THOSE TECHNICIANS OF CONDITIONS THAT MAY OCCUR ON SOME VEHICLES, OR TO PROVIDE INFORMATION THAT COULD ASSIST IN THE PROPER SERVICE OF A VEHICLE. PROPERLY TRAINED TECHNICIANS HAVE THE EQUIPMENT, TOOLS, SAFETY INSTRUCTIONS AND KNOW-HOW TO DO A JOB PROPERLY AND SAFELY. IF A CONDITION IS DESCRIBED, DO NOT ASSUME THAT THE BULLETIN APPLIES TO YOUR VEHICLE, OR THAT YOUR VEHICLE WILL HAVE THAT CONDITION. SEE A GENERAL MOTORS DEALER SERVICING YOUR BRAND OF GENERAL MOTORS VEHICLE FOR INFORMATION ON WHETHER YOUR VEHICLE MAY BENEFIT FROM THE INFORMATION.

COPYRIGHT 1995 GENERAL MOTORS CORPORATION. ALL RIGHTS RESERVED.