GM car warranty confusion leaves consumers and dealers in the dark

Despite assurances from General Motors President and CEO Fritz Henderson that “We have absolutely no intention at all of not taking care of customers" (from CBS Early Show interview), there is one thing that is clear about vehicle warranties during the GM bankruptcy: There is confusion.

In posts on January 6 ("Who will perform warranty service on my GM car?") and another one on June 2 ("My dealer closed! What do I do?"), we reported that GMs instructions for Saturn owners needing warranty service are very clear:

"Under the terms of the warranty, the customer should first attempt to bring their vehicle to any Saturn retailer for warranty service. If there is no retailer in their immediate area, or if it is an emergency situation, the repair can be made at any General Motors dealership. In non-emergency situations, it is a good idea for a customer who is having trouble finding a nearby Saturn retailer to call Saturn Customer Assistance before going to a non-Saturn location. That number is (800) 553-6000."

However, not everyone has received that message.

GM confirmed to us that it “…received Bankruptcy Court approval on June 1 to honor all warranty programs related to vehicles and related components, which also includes lemon law claims, field actions/recall costs and buyback activities.” Additionally, GM's warranty coverage is backed by the U.S. Government for passenger cars and trucks purchased on March 30 through July 31. 

But there are still challenges for motorists seeking warranty repairs. For instance, some Saturn dealerships are going out of business due to the economy, and yet others are deciding not to sell Saturns and service them under warranty. In addition, it appears that internal policies limit–and may even prevent–non-Saturn GM dealers from servicing Saturn vehicles.

According to David Henson, founder of Warranty Matters who provides multi-brand warranty auditing and training services, the GM Policy and Procedures Manual has specific language that limits cross-brand service work. For example, a Chevrolet dealer can work on a Pontiac or Saturn vehicle, if the dealer either sold it as a used vehicle or it was considered an emergency repair situation. Participation in the cross-brand work is not mandatory, says Henson, as dealers might not have the training or tools required to diagnose and properly repair the vehicle.

As a GM spokesperson explained, a Saturn dealer may not be equipped to perform complex repairs on a Corvette, or vice versa. And the term “emergency” is open to interpretation by the local service manager.

Todd Ingersoll, president of Saturn of Danbury and Watertown (Conn.), confirmed the rule, saying it is “General Motors’ policy to allow any division to fix any General Motors car in an emergency, or if they sell the vehicle as a used car.”

A GM representative explained that service for vehicles from the four discontinued or otherwise disposed of brands will continue to be provided by any Hummer, Pontiac, Saab, or Saturn retailer—again, assuming they are still around. GM confirms the policy is that in emergency situations, these vehicles can be serviced at any GM dealer.

Other dealers we spoke with were not as clear on the policy. Adding to the uncertainty is that General Motors currently uses three different warranty management and parts ordering systems: one for Saturn, one for Saab, and one that covers the remaining brands. This makes is difficult for non-Saturn dealers to order the correct parts for Saturn vehicles, according to Henson.

Overall, the confusion hurts the consumer and may even sour them on buying from the “new” General Motors. Likewise, dealers may be turning away business unnecessarily.

It is a shame, as GM has assured us that “There will be an adequate supply of parts to service vehicles, including vehicles associated with discontinued brands.  As brands/models are phased out, GM will continue to provide service parts based on the total number of vehicles on the road, customer demand for parts, and estimated needs for future parts.”

Mark LaNeve, GM North America vice president - Vehicle Sales, Service and Marketing, said, “We're standing behind our products, we're honoring our vehicle warranty programs, we have an adequate supply of service parts for all products and our dealers stand ready to provide great service. Putting our customers first remains a primary focus every day."

The message from General Motors is good and consistent, but it needs to be clearly communicated to the local level. Since our investigation began, Janine Fruehan Manager, Quality & Safety Communications, has assured us that just such a message is being prepared.

We are calling on General Motors and the Auto Task Force to issue a statement that makes it clear to all GM dealers and consumers that owners can take their Hummer, Pontiac, Saab, and Saturn vehicles to any GM dealer for service, even if the car was not purchased at that dealer or not an emergency situation. Clear communication would help all parties.

In the meantime, we recommend car owners call ahead and confirm with a service manager that warranty work will be performed. If one dealer refuses, call another.

For further information, visit: www.gm.com/restructuring/

Read "What does the GM bankruptcy mean to you?" To get more answers to the most common questions and concerns about GM’s bankruptcy, visit our Auto Crisis hub.

—Jon Linkov

Comments

[jaf1]

On top of the financial situation, and quality issues of some GM vehicles, now you have to have your lawyer with you to have your car fixed. How do they expect to do business?
The Feds backup of the warranty makes it even less atractive if that's possible. I can just see the mechanic telling the customer that it'll take 2 weeks for a a government form to make it through, to have your car repaired.
Wake up GM execs. good service, and a warranty without a disclaimer with everyother word is essential.

[Lemonaid_nt]

This is not a good time to have your car break down if you are a GM vehicle owner, at least we can agree on that. The lemon law community hopes to see some clear answers from GM representatives in the near future. The problem is that there is no clear and definitive statement or guidelines at this time. Dealers and consumers alike are left in the dark.

GM is already hurting-they can't afford to push their consumers away in this time of need. Their existing consumers need GM as much as GM needs their consumers and future buying public. Let's hope they don't lose sight of that.

[John]

These comments must have been posted by people who do not own a GM car. I have owned them for years without any warranty problems. I regularly take my Buick to a nearby Chevy dealer. GM has experienced some quality problems, but is working its way out of that. Consumer Reports will run a GM vehicle down based on their opinions even when there are good results for measurable factors. Lumping the G6 in with the Grand Am despite the changes just looks like Consumer Reports is biased against GM.

[david l.conner]

I got a recall on my 2001 saturn.the dealer put a new timing chain but said I have to pay for repairs needed from the bad timing chain due to the engine was replaced AT A saturn dealer with a salvageor branded engine.IT said in 07tb 1,4,14- only claims for repairs covered by emissions warranty and/or recalls will be processed.comments?

[Ari]

Hello. I have a medium duty c4500 with a 6.6 Duramax engine. I have a 2006 with 31000 miles on it and had injector failure and had all injectors replaced with a system flush for 5400 at Nucar Chevrolet in New Castle Delware. They rejected warranty coverage on the fact that there was debris or as they put it "contamination in the fuel" which was dumped out of, GET THIS, the fuel filter. What is the fuel filter there for??? There was no diagnosis of this supposed contamination; it appeared to be just sediment. Everybody I talked to including GMAC which carries an extended powertrain warranty which I have, feels this rejection is not justified. GMAC coverage when to the mat for me and disputed this matter with the dealer and GM. GM refused. My GMAC coverage paid most of the claim for the repair on the basis that they felt there was no evidence to show that this should not be covered. Yet GM did??? Who says GM is still covering warranties? They will try to weasel out of perfectly legitimate claims. They have also had a history of these injector failures which is well known everywhere.

Nucar obviously wants to make more money by getting consumer rates than getting warranty rates from GM; at the cost of the consumer.

[Stratojet]

"It is a shame, as GM has assured us that “There will be an adequate supply of parts to service vehicles, including vehicles associated with discontinued brands. As brands/models are phased out, GM will continue to provide service parts based on the total number of vehicles on the road, customer demand for parts, and estimated needs for future parts.”

I am with GM Canada and in charge of warranty . All warranties are provided to customers and as the business evolves, i.e. Pontiac, Saturn, Hummer which will go, we will address those situations. No interruptions occured as far as repairing GM vehicles and we will continue to do so. We also take care of any customer problems in the same fashion as before .

[Will]

GM is clearly not standing behind ts vehicles or warranties. I have a Hummer with at least 12k miles left on the original bumper to bumper warranty. I have had an on going steering / suspension issue that I have brought the vehicle in for over the last few years starting from week one of vehicle ownership. Each time I am told nothing is wrong. After pressing them, they have replaced something on the vehicle saying it is fixed. The most recent time they told me that holes in the frame where the suspension is attached have worn out and that they will not cover this under warranty. Now I am stuck with a vehicle "covered" under warranty that GM will not approve the dealership to fix. The only explanation I can get is the the aftermarket air intake and throttle body spacer must be related to the issue. Anyone with an sense knows that the air intake system has zero to do with steering and suspension. Give me a break GM. 5 GM vehicles I have owned over my life, but this is a pitiful example of "American made quality". I can see why consumers are scared to buy GM, I would be too.