For 1990-2009 cars

# Warranty Administration - Part and Accessory Replacement Policy

Subject: | Part and Accessory Replacement Policy

Models: | 2004 and Prior Passenger Cars and Trucks

| 2004 and Prior HUMMER H2

The recent rise and expansion of companies selling non-GM parts and accessories has given cause for a reminder to Dealers regarding GM’s policy on the use and installation of these components.

When a Dealer is performing a repair under the New Vehicle Limited Warranty, they are required to use only genuine GM or GM-approved parts and accessories. This applies to all warranty repairs, special policy repairs or any repairs paid for by GM. References for this requirement can be found in the Dealer Sales and Service Agreement Article 7.2.1 and in the GM Service Policy and Procedure Manual, Article 1.2.2.k. Parts and accessories advertised as being "the same" as parts manufactured for GM, but not sold through GM, do not qualify for use in warranty repairs, special policy repairs or any repairs paid for by GM.

During a warranty repair, if a GM OE part number is not available through GMSPO, another GM Dealer, ACDelco® distributor, or other approved source, the Dealer is to obtain comparable non-GM parts and clearly indicate in detail on the repair order the circumstances surrounding why non-GM parts were used. The Dealer must disclose the use of any non-GM parts to the customer and explain the warranty coverage for those parts. References and additional policies regarding non-GM parts and GM’s disclosure requirements can be found in the Service Policy and Procedure Manual, Article 1.2.4.e and 3.3.1.

The importance of these policies was outlined in a Dealer letter VSG20020780 from September 20, 2002 in which Bill Lovejoy explained that Dealers modifying new vehicles and installing equipment, parts and accessories obtained from sources not authorized by GM are responsible for complying with The National Traffic and Motor Vehicle Safety Act. He emphasized that "certain non-approved parts or assemblies, installed by the dealer or its agent not authorized by GM, may result in a change to the vehicle’s design characteristics, and may affect the vehicle’s ability to conform to federal law." Dealers should fully understand that non-GM approved parts may not have been validated, tested or certified for use, and thus puts the Dealer at risk for potential liability in the event of a failure. Ultimately, if a GM part failure occurs as a result of an installation or use of a non-GM part, the warranty will not be honored.

These same policies apply as it relates to the use of non-GM accessories. Damage or failure resulting from the use or installation of a non-GM accessory will not be covered under warranty. References for this can be found in the Service Policy and Procedure Manual Article 1.2.2.b. Failure resulting from the alteration or modification of the vehicle, including the cutting, welding or disconnecting of the vehicle’s original equipment parts and components will void the warranty and the dealer will not be indemnified in the event of any legal inquiry at either the local, state or federal level.

Dealers should be especially cautious of accessory companies that claim the installation of their product will not void the factory warranty. Many times they have even given direction on how to quickly disassemble the accessory in an attempt to preclude the manufacturer from finding out that it has been installed.

When submitting a warranty claim for a GM part, Dealers are reminded of the following policy on parts markup:

Dealers are allowed the normal markup above the GMSPO published dealer net price on all GM parts purchased from General Motors Service and Parts Operations.

The following policies also apply:

• | If GM parts are purchased from an authorized GM ACDelco® Dedicated Distribution Center or other GM-authorized source, they also may be marked-up above the dealer net cost from the GM-authorized source.

• | The applicable parts markup in all cases is not to exceed dealer cost from the authorized source as indicated on the purchase invoice from that source plus the normal markup percentage.

• | Non-GM parts are ineligible for parts markup of any type.

• | GM will give you written notice prior to any changes in this policy.

This information is being provided in the interest of protecting GM and it’s Dealers’ best interests. Questions can be directed to your Area Service Manager or Zone Manager.