By on June 1, 2009

One of our contacts at the sharp end reports that General Motors has suspended payments to its dealers for warranty costs until the federal bankruptcy court can approve said payouts. This despite the President’s assurance that Uncle Sam is backing-up customer claims, and a $361 million dollar payment to GM for same. Even though it’s clear that this is a bureaucratic snafu, it’s not the kind of bureaucratic SNAFU that GM can afford. I mean, you, as owner of 60 percent of the Government Motors.

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12 Comments on “GM Suspends Dealer Warranty Payments...”


  • avatar
    tced2

    The President says one thing and the opposite happens. Surprise! A politician talking.

  • avatar
    menno

    Send your car warrantee bills to:

    President Wannabee Goodwrench
    1600 Pennsylvania Ave NW
    Washington, DC 20500

    After all, the One “promised” it’d all be good.

    With someone else’s money (taxpayers), of course.

  • avatar
    dejal1

    How can that be? The ditz on Good Morning America said the warranties are fine and you shouldn’t have any trouble getting parts for a GM vehicle.

    Parts like carburetors. Yup, she said carburetors.

    Fuel injection systems are probably a different matter.

  • avatar
    PickupMan

    Sounds like the dealer is expected to eat the cost of warranty repairs, until the BK judge/PTOFA gets around to paying the dealer. That should work well.

    Just another way to ‘encourage’ dealers with little spare cash flow to fold their tent?

  • avatar
    Robstar

    Wow, just wow.

    What dealer is going to eat warranty repair costs in the hope they might get paid?

    If I was a dealer I think I’d be selling new vehicles as cheap as possible with 0 warranty.

    GM may be bankrupt and un-sueable, but how about the dealer?

    I can’t imagine selling a new GM vehicle, going to the dealer and having any/all warranty work denied.

  • avatar
    sokwdc

    Enough of the armchair politicizing…you’re as bad as the politicians when you do it. What’s done is done…GM needs to reinvent itself and there are workers who need jobs. GM clearly wasn’t up to the task as we’ve long known. Let this ride itself out before you deem it doomed.

  • avatar
    bill301972

    I work at a Ford dealer and in our used car department we have a fair number of GM products coming through. When there is a vehicle needing repairs that is still under factory warranty, we send it down to the Chevy dealer down the road so that it can be covered by warranty.

    In the last several months, they started denying almost all warranty claims. I don’t know if this is the plan, but you could argue that all warranties are covered as long as your plan is to try and find (make up) a reason to deny anything under warranty…kind of like some insurance companies

  • avatar
    WetWilly

    Obama did say the government would cover warranties; he just didn’t mention the part where they would subcontract the job to USfidelis.

  • avatar
    bunkie

    This is a tempest in a teacup. When a company files for bankruptcy, they lose control over making payments to creditors. Payments get prioritized by the court-appointed receiver. GM has stated that it wants to resume warranty payments as quickly as possible. There’s nothing to see here, move along.

    BTW, i had absolutely no problem gettting warranty service last week at the dealer that sold me my Cadillac. Now, this says nothing about what issues my dealer might have getting reimbursed, but it was reassuring to me as a customer.

    GM may be the world’s worst car company. But as a customer, I know themfrom the cars they make and the dealers who sell their products. For both od my Cadillacs, I have received nothing but prompt, friendly service at several different dealers. It’ part of what made me decide to get a second Cadillac.

  • avatar
    Potemkin

    Neither the government nor GM could organize a one car funeral so why do we expect them to be able to run this bankruptcy.

  • avatar

    It is clear, that like the small share holders, the customer is not invited to the trough.

    So, if you are a bona fide purchaser with an issue, you will have to fight to get it fixed ?

    Are they TRYING to kill GM on purpose ?

  • avatar
    Geo. Levecque

    If you bought a good vehicle in the first place you would not have to worry about needing Warranty service!
    GM needs this like a hole in the head, but being GM that’s how it is I am afraid!

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