GM Warns Dealers About Penalties For Taking Advantage Of Demand

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GM Warns Dealers About Penalties For Taking Advantage Of Demand
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GM Warns Dealers About Penalties For Taking Advantage Of Demand via insideevs.com

Sadly, dealer practices such as high markups and flipping vehicles hurt the customer the most, and GM's potential warranty policy could impact buyers negatively. It may not even be a buyer's fault, and they could end up paying big money for a vehicle with a warranty they can't use.

As we've noted a few times recently, automakers like GM and Ford don't really have control over their dealers. For the most part, they can't tell them how to operate. However, if dealer decisions are making a negative impact on customers, it only makes sense for the automaker to get involved, not only to protect the brand's image, but also to make sure customers aren't lost.

Despite the letter to dealers, it's not crystal clear how the new policies are going to play out. Moreover, we don't know how the automaker intends to enforce them. According toThe letter explains that GM will be reaching out to dealers in the coming days to provide more specific details about the policies.

customer acknowledgment requirements to implement this new process." Finally, the automaker notes that the changes will not affect vehicle recalls.

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