GM Warranty Labor Rate Selection
 

One of our members forwarded me an email indicating that a deadline was approaching as it related to how General Motors was going to calculate the Warranty Labor Rate for their dealerships. As I understood the issue the dealers had to choose between at least two different options which could also have ramifications on the Warranty Parts Mark-up percentage.

I was busy when I received the email and I wasn't able to add a thread to the forum. Sadly, the deadline of December 4th has already passed.

I'm curious if most GM Dealers knew about this deadline and whether it's a big issue or not. It wasn't clear to me if the decision the dealer made was irreversible. :confused:

I never saw that.

I'll check with Len Bellavia from DealerLaw.com and see if he has any input. It was his law firm that sent out a notification to his clients ahead of the deadline.

Dealers should not switch from Option C to Option A because they will lose their right to be reimbursed at retail rates for warranty parts. You can have both -- a door labor rate and retail reimbursement for parts. This is a game that GM is playing to trick dealers into giving up their retail markup for parts. Please watch our video at dealerlaw.com for an explanation. Any questions and we are happy to help. No charge. No dealer should be at cost plus 40% markup on parts anymore (unless you are in a state that still has no retail statute--ask us about the law in your state) Best, Len

Len,

Thanks for the update.

For those who want more information, here's a link to DealerLaw.com