GM Suspends Dealer Warranty Payments
Published: June 1st, 2009
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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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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.
Neither the government nor GM could organize a one car funeral so why do we expect them to be able to run this bankruptcy.
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 ?
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!