Parts - Expediting Procedures
Group Ref.: Warranty AdministrationBulletin No.: 480502
Date: August, 1994
WARRANTY ADMINISTRATION
SUBJECT:
INFORMATION ON EXPEDITING PARTS
MODELS:
ALL PASSENGER CARS AND TRUCKS
General Motors continues to reduce the number of service parts on backorder. These improvements are to aid and assure success of our mutual goals of exceeding our customer's expectations in all areas of our business. The following policy is being enacted to address those rare occasions when it is necessary to procure a part locally from another dealer/retailer distributor or by express shipping.
The following procedure provides dealers/retailers with the tools to help achieve total customer satisfaction. This procedure will provide reimbursement of expenses beyond normal dealer/retailer parts costs, up to dealer/retailer trade for parts obtained locally, or expenses incurred for expediting General Motors parts not in dealer/retailer stock.
Recommended Parts Expediting Procedure:
1. Inform the customer if a part availability issue exists, and if eligible, offer appropriate "Courtesy Transportation". See Divisional Manual for guidelines.
2. Contact local dealers/retailers distributors and your local PDC in an attempt to obtain needed parts and provide same day repair. Participating divisions will reimburse the difference between dealer/retailer price and actual cost, up to trade price, as published in The GMSPO Parts And Accessories Price Guide.
3. In the event same day repairs cannot be provided, order the part "VIP-Overnight" ("VIP" if overnight service is not available in your area). Participating division will reimburse VIP charges and shipping expenses. (if a part is on back order, IMMEDIATELY upgrade the order to a SPAC case).
4. Please review the parts application and add part to your normal inventory if appropriate.
5. Always keep the customer informed of the status of the repair.
CLAIM SUBMISSION
Part Obtained Locally:
When a General Motors part is obtained from a local dealer or distributor, the dealer/retailer will be reimbursed for the added cost up to the published dealer trade price. Should the GM Parts book not have a trade price listed, the trade price parts handling allowance should not exceed 25% of the listed dealer cost. A claim for the repair should be submitted in the normal manner. An additional claim/case should be submitted for the actual amount paid, up to dealer trade price, for the added cost incurred, (dealer/retailer amount paid less the normal GMSPO dealer price = handling allowance).
The following example utilizes an evaporator core as the required part. In the example, the dealer/retailer purchased the part from another dealer/retailer for $240.00. The repairing division will compensate the dealer/retailer for the dealer net plus the normal parts allowance (30% for 93 and prior, 40% for 94 and future) $199.80 + 59.94 = $259.74 as part of the regular labor operation D3320. The additional part cost over and above dealer price, ($240.00 - 199.80 = $40.20) should be submitted under labor operation Z5000 as a net amount.
The claim submission is shown in the example.
The elements for this claim may appear on your DCS screen in the following manner (some of screen layouts may be different).
Part Ordered "VIP Overnight Or VIP"
If a VIP overnight order is necessary, the VIP service charge and freight expense will be reimbursed. A claim for the repair should be submitted in the normal manner. An additional claim/case should be submitted for the actual amount of the VIP charge and freight expense, (Freight charges can be obtained from the package invoice included with the part, form number PC-82).
If the evaporator core in the previous example had been obtained from GMSPO through a VIP overnight parts order, the following example shows correct warranty claim submission for the additional cost. The published GMSPO dealer price for the core is $199.80. The GMSPO charges associated with the VIP overnight order would be $11.99 ($2.00 per line plus 5% of the dealer price). The repairing division would reimburse this amount, plus any applicable freight charges, submitted under labor operation Z5001 as a net amount, (VIP charges of $11.99 + $18.00 express shipping charges = $29.99).
The claim submission is shown in the example.
The elements for this claim may appear on your DCS screen in the manner (some of screen layouts may be different).
All records and invoices in support of your claim must be retained and attached to your warranty copy of the repair order in accordance with Article 1.6 of the GM Service Policies And Procedure Manual.
When submitting for reimbursement under either of the operation numbers, Z5000 for parts obtained locally or Z5001 for VIP overnight expenses, the service manager is required to initial and provide an appropriate explanation on the repair order to indicate approval of the added expense. These claims will only require authorization when the vehicle is out of the normal new vehicle warranty.
GM is making a significant financial commitment to help reduce comebacks and maintain the level of customer service demanded by customers in your dealership. Please use good judgment to administer this policy. We feel exceeding customer expectations will pay great dividends to all GM dealers.