GM cracks down on EV and sports car flipping with controversial new policy

Shawn Knight

Posts: 14,324   +163
Staff member
In brief: Covid-induced production delays and resulting component shortages directly contributed to the huge mess that the video game hardware industry is just now starting to recover from. As it turns out, the automotive industry is going through a similar crisis – one that GM thinks it may have just solved with a controversial new policy.

In a letter recently sent to US dealers, GM North American President Steve Carlisle outlined changes impacting three high demand products: the 2023 GMC Hummer EV, the 2023 Cadillac Escalade-V and the 2023 Chevrolet Corvette Z06.

GM will limit the transferability of warranties on these models if the original owner resells the vehicle within the first 12 months of ownership. Specifically with the Corvette and Escalade, the bumper-to-bumper, powertrain, sheet metal, tire, and accessory coverages will be voided. On the Hummer EV, the bumper-to-bumper, electric vehicle propulsion, sheet metal, tire, and accessory coverages under GM's warranty will also be null and void if resold within the first year.

The Hummer EV's battery warranty is not affected, and the changes will not impact product recalls, we're told.

Furthermore, the seller will be prohibited from placing future orders for certain high-demand GM products.

"These changes are being implemented to ensure an exemplary customer experience, to ensure our brands remain strong, and to help prioritize ownership by brand enthusiasts and loyal customers," said Carlisle.

In short, GM has designed the policy to deter people from buying an in demand model from a private party (who wants a new vehicle without a warranty?) and to discourage sellers from getting on GM's naughty list (who wants to be banned from reserving a future vehicle you may really want?).

We also don't know if this is a short-term fix to the active environment of a seller's market, or if GM is planning to make this a permanent change. Once production ramps up and markets normalize, a policy like this could backfire, especially among loyal GM buyers. It essentially traps buyers into a minimum year of ownership and ensures that third-party shoppers won't be buying these models as frequently from private parties. Frustration could even prompt prospective buyers to seek out different models from other automakers in protest.

Permalink to story.

 

p51d007

Posts: 3,295   +2,886
Why doesn't the "auto industry" just go ahead and ADMIT, they've been told by the WEF and other globalist that personal ownership of things will cease. You won't own it, you'll "subscribe/rent" it.
 

netman

Posts: 818   +368
One year is not a Long Time for a car.... If you really want to piss people off, make it 5 years...!
 

Rdmetz

Posts: 398   +189
Unless GM is paying you to advertise their product they should not be able to dictate what you do with the product you have purchased.
They're not....

They are only dictating what they will do in the future not you.

Warrantys aren't a part of your car you bought but a service and they have the full authority to not extend that service to anyone else if they choose.

They also can choose who they sell cars to.

Why would they be forced to do business with you?

Nothing wrong here and I'm sure anyone effected will be notified ahead of the time of purchase so if you go ahead and buy you know what you're getting yourself into.

Previous buyers before the change are likley to be Grandfathered out of the new rules.

Do what you want with YOUR property and they'll do what they want with THEIR business.

If you choose to not do business with them because of this change I think they would say the feeling is mutual.
 

Rdmetz

Posts: 398   +189
That is just going to punish the uninformed buyers. The sellers / flippers wont care.
That is just going to punish the uninformed buyers. The sellers / flippers wont care.
That is just going to punish the uninformed buyers. The sellers / flippers wont care.


When they can only do it once it won't matter nearly as much they'll cut down on the whole scalper market and eventually things will even out.

If a buyer buying 3rd party doesn't do his due diligence in determining what they are getting that's on them and unless the seller actually purposefully lies and makes it look like they are good when they are not then they buyer should be looking to sue the seller.

Ultimately it's at that point no longer the manufacturers problem it's the parties who made the deal together.
 

Ryan Barrett

Posts: 53   +13
Why doesn't the "auto industry" just go ahead and ADMIT, they've been told by the WEF and other globalist that personal ownership of things will cease. You won't own it, you'll "subscribe/rent" it.

I don't know what the WEF is, but Tesla pretty much has admitted that. Auto drive is a subscription now and they have disabled features when reselling unless the new owner pays for them again. This is the danger of technology.
 

p51d007

Posts: 3,295   +2,886
I don't know what the WEF is, but Tesla pretty much has admitted that. Auto drive is a subscription now and they have disabled features when reselling unless the new owner pays for them again. This is the danger of technology.
WEF= World Economic Forum. A bunch of globalist that like to get together from time to time to try to "shape" the world according to THEIR views.