GM software aids dealerships to do recall work on cars before selling

Article by Christian Andrei, on April 22, 2015

Software that will make it more difficult to mistakenly sell a new General Motors vehicle that is being recalled will roll out this month. These software tools will be phased in during the third quarter. Tim Turvey, GM global vice president of customer care and aftersales, said that the company looks at safety as “a core value, a core priority.”

The first step is an “incentive lookup block.” GM said that with this software, dealerships will have to first perform the recall work as needed.

Dealerships won’t be able to look up the incentives that apply to a specific vehicle if it is part of a recall and no record of work is seen. It can be recalled that in the U.S. last year, GM issued its biggest-ever recall of 27 million vehicles in the wake of its ignition-switch safety predicament.

So far, the compensation for 84 victims of deadly crashes related to the switch has been approved by GM's claims administrator. Experts said that dealerships are able to look up vehicle identification numbers to see if a vehicle is subject to a recall.

However, the National Highway Traffic Safety Administration website allows them to do this one vehicle at a time. A huge dealership will have a difficult time of determining which of the vehicles on its lot are involved in the recall.

Turvey said that linking the recall information to incentives makes it very unlikely for the dealerships to make a mistake. Turvey said that inquiries on incentives could reach up to 50,000 a day. At the World Traffic Safety Symposium in New York last Friday, NHTSA Administrator Mark Rosekind was asked to comment on GM’s move.

He replied that GM isn’t legally required to make the changes and so, he is acknowledging GM’s innovation. Rosekind said that GM is responding to a case wherein a dealership in Pennsylvania was penalized for selling units without doing the warranty work first. Actually, the case referred to Chapman Chevrolet in Philadelphia.

NHTSA records show that a $50,000 civil penalty was to be paid by the dealership for having sold 23 new vehicles without required warranty work. This case reached a settlement on October 1.

Rosekind cited a “carrot” and “stick” aspect in what GM is doing. The carrot is GM’s move to find a way to emphasize to dealerships how much revenue they will gain as compensation from GM for doing recall work. He pointed out that the stick is the inability of the dealership to apply incentives until the recall work is accomplished.

Topics: gm, dealership, recall

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries