GM will restrict guarantee transfers and ban patrons from flipping Hummer EVs | Engadget

GM does not need folks shopping for a few of its newer and most sought-after fashions, such because the GMC Hummer EV, to shortly promote them for a revenue. The automaker is implementing a number of aggressive measures meant to discourage the apply, even when it finally ends up shedding the corporate some prospects. In a letter obtained by Corvette Blogger, Steve Carlisle, GM President for North America, advised the GM Dealership staff that the corporate is “limiting the transferability of certain warranties” if the car being resold was bought throughout the previous 12 months. Further, GM will ban the vendor from “placing future sold orders or reservations for certain high demand models (as identified by GM).”

Carlisle mentioned the fashions affected by this new rule are the GMC Hummer EVs (SUT and SUV), the 23MY Cadillac Escalade-V and the Chevrolet Corvette Z06. GM has been struggling to maintain up with the demand for its electrical Hummer automobiles, and the corporate mentioned it is as a result of it was developed from scratch and was constructed on prime of its new Ultium EV platform. According to a Wall Street Journal report earlier this month, GM has solely been producing as much as a dozen electrical Hummers a day. A spokesperson advised the publication that the corporate’s output will enhance sharply within the second half of the yr, however the automaker has over 70,000 reservations for the car, and a few folks might run out of persistence and simply buy from a reseller. 

“When vehicles are quickly resold, particularly by unauthorized dealers or other resellers that do not adhere to GM’s standards, the customer experience suffers and GM’s brands are damaged,” Carlisle mentioned, explaining the rationale behind the automaker’s determination. “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.”

In addition to those specific measures, GM additionally lately introduced that it is giving $5,000 in reward factors to prospects who maintain their eighth-generation Corvette Z06 sports activities automotive for a yr.

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