GCUS-9-2924

GM CUSTOMER CARE AND AFTERSALES
DCS4208
URGENT - DISTRIBUTE IMMEDIATELY
Date:
October 4, 2016
Subject:
Working Capital Assistance Program for Used GM Vehicles
Subject to a Stop Sale/Stop Delivery Order Where Parts or a Repair
Remedy Are Unavailable
To:
All U.S. General Motors Dealers
Attention: Dealer Principal, General Manager, Parts and Service Director, Service
Manager, Used Vehicle Sales Manager and Warranty Administrator
In an effort to provide support to GM dealers relating to used GM vehicles being
constrained by a stop sale/stop delivery order in situations where either replacement parts
or a repair remedy are not available, we have developed the following working capital
assistance program.
•
The program will be available to U.S. dealers that are, at all relevant times, a party to
a Dealer Sales and Service Agreement with GM authorizing the dealer to sell and
service new Chevrolet, Buick, GMC or Cadillac motor vehicles. The program will apply
prospectively to used vehicles in inventory (i) that are subject to a stop sale/stop
delivery order issued on or after October 1, 2016, and (ii) where replacement parts or
a repair remedy are not available to permit the vehicle to be repaired. This program is
not retroactive and is only applicable to stop sale/stop delivery orders issued on or
after October 1, 2016. Dealers must have agreed to a Dealer Data Share Agreement
to receive payments as described in this message.
•
If a used vehicle is eligible for assistance as described in this message, GM will
provide the dealer an amount equal to 1% of the average Black Book value of the
corresponding model year of average condition for any qualifying used GM vehicle
per month (30 days). For example, all eligible Malibu vehicles of a certain model year
would qualify for the same flat payment regardless of equipment level or condition.
The payment will not under any circumstances, however, exceed the average Black
Book value applicable to the vehicle. If a dealer is entitled to more or less than 30
days of working capital assistance, the dealer will receive a pro rata payment based
on the number of days the vehicle is eligible. Payment will be made to qualifying
dealers on a quarterly basis in the form of Dealer Bonus Certificates. Please see the
attached pro rata calculation examples.
•
Once parts and a repair remedy are available and the recall bulletin has been
released, the vehicle will remain eligible for an additional 3 days to cover part
distribution time or other timing or administrative issues. The vehicle will not qualify
for any payment under the program until 15 days (includes the additional 3 days noted
for part distribution) after the issuance of the stop sale/stop delivery order. In the event
sufficient parts and repair procedures are made available within 12 days of the initial
stop sale/stop delivery order, no payment would be made on the vehicle.
•
The 1% will be paid in Dealer Bonus Certificates, each with a value of $250, and the
aggregate quarterly payments for each dealer will be rounded up to the next $250
increment. These certificates may be applied toward any future sale or lease of a new
GM vehicle. Certificates will expire after 90 days and a maximum of four certificates
($1,000) may be “stacked” on each vehicle sale or lease transaction. Certificates will
be issued quarterly, starting in January, 2017. The terms and conditions applicable to
Dealer Bonus Certificates under GM’s incentive bulletins and Sales Allowance and
Incentive Manual will apply. All participating dealers will be subject to audit for
compliance with program requirements.
Where offered by GM and applicable, this program will be described in the pertinent recall
bulletin. Vehicles eligible to receive working capital assistance in accordance with the
terms and conditions of this program will be identified through inventory reports by
applicable field action number. Dealers will be required to submit a request for each
eligible vehicle in order to receive assistance. If a Vehicle Identification Number (VIN) is
claimed by more than one Business Associate Code (BAC) or duplicated in more than
one Dealer Management System (DMS) report, that VIN will not be eligible for assistance.
Additional information, including how to request assistance, documentation requirements
and a detailed audit procedure will be provided in the near future.
GM reserves the right to amend, modify, terminate or cancel this program at any time in
its sole discretion.
END OF MESSAGE
GM CUSTOMER CARE AND AFTERSALES
Pro Rata Calculation Examples
Example 1:
Dealer has 10 used Silverados with determined average Black Book value of $22,000
each.
 1% of $22,000 = $220 per month (30 days)
Stop Sale was for 44 days (41 days without an available part or repair procedure + 3
days for part distribution, etc).

44 days – 14 days (initial grace period) = 30 eligible days
Prorated Period
 10 vehicles x $220 per vehicle x 30 eligible days / 30 days value = $2,200.00
The calculated Dealer Bonus Certificates would be 8.8 ($2,200 / $250), which would be
rounded up to 9 certificates included in the quarterly allocation.
Example 2:
Dealer has 2 used Silverados with determined average Black Book value of $22,000
each, and 5 used Tahoes with determined average Black Book value of $30,000 each.

Silverado
- 1% of $22,000 = $220 per month (30 days)

Tahoe
- 1% of $30,000 = $300 per month (30 days)
Stop Sale was for 18 days (15 days without an available part or repair procedure + 3
days for part distribution, etc)


Silverado:
- 18 days – 14 days (initial grace period) = 4 eligible days
- 2 vehicles x $220 per vehicle x 4 eligible days / 30 days value = $59
Tahoe:
- 18 days – 14 days (initial grace period)= 4 eligible days
- 5 vehicles x $300 per vehicle x 4 eligible days / 30 days value = $200
The calculated Dealer Bonus Certificates would be 1.04 ($59 + $200 = $259 / $250),
which would be rounded up to 2 certificates included in the quarterly allocation.