11-00-89-005H Service Bulletin/Repair Instructions

File in Section:

Bulletin No.:
Service Bulletin
Date:
00 - General Information

11-00-89-005H

November, 2014
WARRANTY ADMINISTRATION

Subject:
Warranty Administration – Clarification of Use - Dealer Empowerment Labor

Operations and Customer Enthusiasm (U.S. Only)
Models:
2015 and Prior GM Passenger Cars and Trucks
Attention: This service bulletin does not apply to ‘GM of Canada’ dealers. Dealers in Canada

should continue to refer to the Goodwill section on the Warranty Administration

Homepage in GM Global Connect for the most recent information and updates to the

GM of Canada ‘Enable and Empower Project.’

This bulletin has been revised to add the 2015 Model Year and provide two new Goodwill

Tools as well as provide information concerning the use of Goodwill tools for a Recall or

Stop Sale situation. Please discard Corporate Bulletin Number 11-00-89-005G.
The effective date of the requirements of this bulletin is October 1, 2014.

For some time now we have been working together to be even more focused on our customers and to put them first

in everything that we do. During this time, we’ve challenged you, our dealer partners, to be assertive on behalf of our

customers and make effective use of the policy and goodwill tools available so that customers are satisfied and

remain loyal to their vehicle brand and your dealership.

Over the past several years, we have extended increased levels of empowerment to our dealers and our team

members so that you can confidently do what is right to satisfy our mutual customers. And while this effort has been

largely successful, the reality is that the strategic approach is not always consistent across different dealerships and

different markets. In addition, with more and more of your employees engaged in doing what’s right for the customer,

several of you have requested that we provide additional guidance to assist you in training them to make good

quality decisions, on behalf of the customer, while expending resources in a cost effective manner.

It is those requests, and the desire to continually improve the customer experience that are the basis for this bulletin,

in which we will be documenting guidelines to further assist you and your employees in developing a more

consistent professional approach to resolving customer issues while spending resources in a judicious manner.
Organizational Terms

The following should clarify the terms used to describe various payment categories used to satisfy customer

requests for assistance. These terms will be used throughout this bulletin.

Resource
Definition
Warranty
Vehicle repairs within the time and mileage limitations of the written warranty period that are a result of

a covered defect in materials or workmanship.

• Example: Window Regulator is replaced during the 3 years/36,000 mile New Vehicle Limited

Warranty.
Customer

Enthusiasm
Vehicle repairs within the time and mileage limitations of the written warranty period that ARE NOT the

result of a covered defect in materials or workmanship.

• Used in rare/unique circumstances.

• When submitting a transaction for repairs that are Customer Enthusiasm, be sure to select

Customer Enthusiasm in the Job Card Transactions Detail section of GWM.

• Example: Repair of a front air deflector due to customer not realizing how low it is.
Resource
Policy
Definition

Vehicle repairs outside of the applicable time and mileage limitations of the written warranty period.

• Example: Wiper motor fails at 52,000 miles and GM pays for all or part of the repair cost.

• When submitting a transaction for repairs that are Policy, be sure to select Policy Flag in the Job

Card Transactions Detail section of GWM.
Goodwill
Assistance expenditures made to satisfy the customer.

• The term “Goodwill” does not refer to a vehicle repair. Repair outside of Warranty is “Policy.”

• Goodwill is the term for the tools that are used to offset customer inconvenience or to offer

additional protection and peace of mind. Details of the Goodwill tools are found later in this bulletin.

• Example: An Owner Loyalty Certificate (OLC) is offered to a customer who is in the market for a

new vehicle due to continued out-of-warranty transmission issues.
Special Coverage
Extension of the warranty coverage of a specific vehicle component or system if an identified nonsafety related failure occurs.

• The necessary repair under a Special Coverage will be performed only if the specified condition is

present in the vehicle.

• Example: Extended coverage on the transmission shift cable for certain Saturn vehicles.
Customer Enthusiasm Repair-Non Warranty

A Customer Enthusiasm Repair is a repair performed within the warranty period when the product issue is not

covered by the New Vehicle Limited Warranty but the dealer/customer wants GM to cover the repair to ensure

customer loyalty. In these instances, when the transaction is being submitted for reimbursement, the dealer should

use the repairing labor operation and select the “Customer Enthusiasm-Non Warranty Repair ” check-box.

Important: Do not select Customer Enthusiasm if the vehicle is beyond the terms of the applicable warranty – by

definition post warranty repairs are Policy transactions. ALSO: All examples in this Bulletin assume certain facts.

You should evaluate each customer’s situation on a case-by-case basis. Customer Enthusiasm is not to be used for

divisional/brand maintenance programs, reimbursements, accessories, sales incentives, or anything non-repair

issues.

• Example 1: A customer comes into the dealership and states their keyless entry fob on their 2010 SRX

with 24,000 miles was inadvertently lost by their college age son who was unfamiliar with the keyless

start system. This is not a defect in material or workmanship and therefore is not covered by the New

Vehicle Limited Warranty. However, based on the customer’s situation, previous repairs for other issues

and to maintain customer satisfaction, it is determined that GM will cover 66% of the $150 cost to

replace the transmitter and re-program the system. To do this, the transaction would be entered as a

ZREG using the 6430280 Remote Control Door Lock and Theft Deterrent Transmitter Replacement labor

Operation, the Customer Enthusiasm-Non Warranty Repair box checked, the full amount of parts and

labor input and the $50 Customer participation input into the Customer/Service Agent Participation

field. The Complaint, Cause, and Correction fields must document the situation including the reason for

the decision.

Important: The Complaint, Cause, and Correction fields must document the specific situation including the

substantive reason, for the decision.

• Example 2: Customer’s vehicle has a cut in the rear seat back at 8,000 miles. This is not a clear defect in

material or workmanship and therefore would not be a warranty repair. Based on the facts and

circumstances and the customer’s history with the dealership, the service manager would like to fix the

customers issue and submit this to GM for reimbursement even though it is a non-warrantable repair.

The transaction would be entered as a ZREG using the rear seat back labor operation with the Customer

Enthusiasm-Non Warranty Repair box checked. The Complaint, Cause, and Correction fields must

document the situation including the substantive reasons for the decision.
Policy Guidelines

In early 2012, General Motors introduced Policy Guidelines to document the boundaries of vehicle Policy repairs.

Now that they have been in market, it has become clear that there is some confusion on how and when to use them.

To simplify the process, GM is launching a revised set of guidelines that are documented below.

The Policy guidelines are being used to:

• Create a Policy strategy which drives increased service and sales retention.

• Develop consistent decision making practices / processes among dealers, field (including Fleet Sales) and

Customer Assistance Center (CAC) representatives.

• Document customer / dealer participation amounts at varying time and mileage intervals once a decision to

provide assistance has been made.

The Policy guidelines are NOT being used to:

• Discourage taking care of our customers.

• Impose a rigid “one size fits” all approach to issue resolution.
• Drive a particular decision – the guidelines are only to be used after a decision to assist has been made.

• Disregard facts or circumstances that make a particular customer’s situation unique.

When presented with a customer situation that requires you to determine whether to perform a Policy repair your

decision making process must treat each case as a unique set of circumstances and each customer’s situation must

be evaluated on a case-by-case basis.

When considering an out of warranty assistance situation you should have a clear understanding of:

• The customer’s issue and problem with the vehicle

• The customer’s expectations

As you review the individual case please consider the following supporting and limiting factors as you determine the

level of support that you will offer, if any. Please note that there may be other factors that influence your decision

making. We are relying on our dealer service management personnel to engage with the customer and to make the

best balanced business decision possible.

Supporting Factors:

• Close to vehicle or component’s warranty expiration

• Original owner

• Loyal GM new vehicle customer

• Loyal GM service customer

• Repeat repairs related to current vehicle issue

• Type of repair

• High incurred customer expense to repair “out of warranty” issues

• High number of days vehicle down during warranty

• Customer’s point in the ownership (purchase) cycle

• Additional factors that you believe support assistance

• Customer has established history of properly caring for and maintaining the vehicle

Limiting Factors:

• Well beyond vehicle or component’s warranty expiration

• Recently purchased as a used vehicle

• Vehicle purchased outside of the warranty

• Cause is not normally covered by warranty (misuse, abuse, neglect, accidental damage, lack of maintenance)

• Customer does not appear to take good care of the vehicle

• Expenses incurred due to damage from an accident that insurance will not cover

• Expenses incurred due to damage done by an independent repair facility

• Vehicle has an active Service contract

• Additional factors that you believe do not support assistance

If you decide that some level of assistance is appropriate, you will need to do the following:

• Based upon the result of your review of the particular case, you will need to determine and agree with the

customer / District Manager Aftersales (if required) to an appropriate level of GM assistance for repair. In

addition to the concept of a declining level of GM support as the vehicle’s age and mileage increases

there is a customer / dealer participation amount as outlined in the tables below and in the online Policy

Calculator.

• The level of participation by GM and the customer/service agent is to be determined by:

• The participation amount is calculated through the use of the online calculator or tables in this bulletin. The

calculator or tables are to be used for every job card and on each line of the job card where participation is

recommended.

• If the amount noted on the calculator or tables is adjusted then the calculator MUST be attached to the hard

copy of the job card. This holds true for every line on the job card that has been adjusted to the amount

noted on the calculator. In addition, Service Management must explain the reason for adjustment on the

hard copy. Vague reasons such as “for customer satisfaction”, “good customer”, etc. are not sufficient.

• The service manager must authorize the policy adjustment prior to the claim being submitted. This

authorization must be in the form of an explanation, signature/initials, time and date (reference GM Service

Policies & Procedures Manual, Article 3.2.13).
•

•
•
If you conclude that GM Participation is appropriate, you must indicate (on the transaction input) the amount of

Customer / Service Agent Participation in the “Customer/Service Agent Participation Amount” field in the

transaction.

The online Policy Calculator can be accessed in the Reports and Tools section of Service Workbench via the

link to “Dealer Aftersales Empowerment.” If you do not have the link, please contact your dealership’s Partner

Security Coordinator (PSC) to obtain access.

• Effective October 1st, 2013 the Policy Calculator will utilize the information that you enter to determine the

ownership status and advise you if any of the following situations:

• Our records show that the vehicle is not owned by the original owner

• Our records show that the vehicle is a Certified Used Vehicle

• The database is not available

• If you are prompted that the vehicle is no longer owned by the original owner, please determine the

ownership status as there are several circumstances that could lead to this indication. Among these are

name changes from marriage, transfer within the family, business name, etc. If it is determined that it is, in

fact, a used vehicle, then use this information in your decision making process as appropriate (It is likely a

Limiting Factor).

If the components coverage is not listed, please utilize the Bumper to Bumper time and mileage table or Policy

Calculator field to determine the starting level of Participation. You will need to use your judgment to determine

if this level of participation is appropriate.
Important Participation Notes

• If the cost of repair under warranty rates is less than the indicated participation amount then there will be no GM

participation without approval from your District Manager of Aftersales.

• As the majority of Policy repairs are isolated and unique, the participation applies to each Policy labor code on

the job card.

• The customer and/or Service Agent participation MUST be documented in the Customer / Service Agent

participation field of the Global Warranty system transaction (see section below).

Important: Failure to document the participation amount in the Customer/Service Agent participation field may

result in a charge back for the applicable amount.

• Document in the job card the substantive reasons and pertinent facts and circumstances supporting the

assistance. The reasons supporting GM assistance should be abundantly clear to an objective third party

reviewing the job card that has not been involved in the customer decision making process. Short general

comments such as “good customer” or “out of warranty” are not sufficient - document your decision making

process as well as the reasons for adjustment in some detail.

• Providing assistance on a vehicle that is beyond 8 years old should only be considered under rare

circumstances. As an alternative for these and other circumstances where repair assistance is inappropriate,

consider using one of the Goodwill tools that are described later in this bulletin.
Participation Time and Mileage Tables

Bumper-to-Bumper Coverage (Includes Powertrain items on 2006 and Prior vehicles)

Beyond New Vehicle Limited Warranty Repairs in the following repair groups:
Time and Mileage Table (Chevrolet, GMC, Pontiac, Saturn)

Customer/Dealer will pay greater of Participation $ amount or % of total repair as indicated in the applicable table

below.

Days out of Warranty
Miles out

of

Warranty
0
1 – 365
366 – 730
731 – 1,095
1,096 –

1,460
1,461 –

1,825
1,826 +
0
In Warranty
10%

or $100
25%

or $200
40%

or $300
55%

or $400
70%

or $500
PreApproval
1 – 12,000
10% or $100
10%

or $100
25%

or $200
40%

or $300
55%

or $400
70%

or $500
PreApproval
12,001 –

24,000
25% or $200
25%

or $200
25%

or $200
40%

or $300
55%

or $400
70%

or $500
PreApproval
24,001 –

36,000
40% or $300
40%

or $300
40%

or $300
40%

or $300
55%

or $400
70%

or $500
PreApproval
36,001 –

48,000
55% or $400
55%

or $400
55%

or $400
55%

or $400
55%

or $400
70%

or $500
PreApproval
70% or $500
Time and Mileage Table (Chevrolet, GMC, Pontiac, Saturn) (cont'd)

Customer/Dealer will pay greater of Participation $ amount or % of total repair as indicated in the applicable table

below.

Days out of Warranty

48,001 –

60,000

60,001 +
PreApproval
70%

or $500
70%

or $500
70%

or $500
70%

or $500
70%

or $500
PreApproval
PreApproval
PreApproval
PreApproval
PreApproval
PreApproval
PreApproval
TABLE 1
Time and Mileage Table (Buick, Cadillac, HUMMER)

Customer/Dealer will pay greater of Participation $ amount or % of total repair as indicated in the applicable table

below.

Days out of Warranty

0
Miles out

of

Warranty
1 – 365
366 – 730
731 – 1,095
1,096 – 1,460
1,461 +
0
In Warranty
10% or $100
25% or $200
40% or $300
55% or $400
Pre-Approval
1 – 12,000
10% or $100
10% or $100
25% or $200
40% or $300
55% or $400
Pre-Approval
12,001 –

24,000
25% or $200
25% or $200
25% or $200
40% or $300
55% or $400
Pre-Approval
24,001 –

36,000
40% or $300
40% or $300
40% or $300
40% or $300
55% or $400
Pre-Approval
36,001 –

48,000
55% or $400
55% or $400
55% or $400
55% or $400

12 3

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