GM to Dealers: NO Silverado EV Dealer Markups or Lose Your Allocation

administrator · Jan 21, 2022

Following Ford's recent letter to its dealerships warning against F-150 Lightning ADM (additional dealer markup), General Motors has just sent a similar letter to its dealerships that the company has become aware that: "some dealerships have attempted to demand money above and beyond the reservation amounts set in GM's program rules and/or have requested customers to pay sums far in excess of MSRP in order to purchase or lease a vehicle" with respect to 2024 Silverado EV reservations (among other vehicles).

GM warns its dealerships that the company "reserves its right to redirect your vehicle allocation or take other recourse prescribed by the Dealer Sales and Service Agreement" if it discovers that the dealership is, among other things, "providing customers misinformation about additional sums being necessary for a customer to keep a reservation..."

See the full email letter below.

Cmiller81 · Jan 21, 2022

Finally. Wonder if there is a way we can report dealers that said they will be adding market adjustments and other bullshit additions to msrp?

Dark-Fx · Jan 21, 2022

Cmiller81 said:
Finally. Wonder if there is a way we can report dealers that said they will be adding market adjustments and other bullshit additions to msrp?

ADM's aren't actually a violation of the agreement. Requiring additional deposits definitely is.

Trekkie · Jan 21, 2022

believe it or not I've had luck with Twitter when it comes to customer satisfaction issues, you never know.

Fredrick · Jan 21, 2022

Dark-Fx said:
ADM's aren't actually a violation of the agreement. Requiring additional deposits definitely is.

Excessive ADM ("sums far in excess of MSRP") could be deemed a violation since the agreement also includes behavior they determine to be unethical or damaging to GM's reputation.

Fredrick · Jan 21, 2022

Cmiller81 said:
Finally. Wonder if there is a way we can report dealers that said they will be adding market adjustments and other bullshit additions to msrp?

I think shaming them on the forum is a good start. Maybe with an ADM list (opposite of this one).

nconantj · Jan 21, 2022

Dark-Fx said:
ADM's aren't actually a violation of the agreement. Requiring additional deposits definitely is.

GM can declare them so.

If GM decides an ADM is excessive, GM can declare it unethical. This would be a violation of the first clause excerpted in the letter.

Excessive ADM's are detrimental to the reputation of at least the Dealer. They can also be detrimental to the reputation of GM or GM products if GM doesn't take action. They are therefore a violation the second excerpt that was quoted in the letter.

personalt · Jan 21, 2022

nconantj said:
GM can declare them so.

If GM decides an ADM is excessive, GM can declare it unethical. This would be a violation of the first clause excerpted in the letter.

Excessive ADM's are detrimental to the reputation of at least the Dealer. They can also be detrimental to the reputation of GM or GM products if GM doesn't take action. They are therefore a violation the second excerpt that was quoted in the letter.

Sure..but this does need to be balanced against GM appearing to violate federal price-fixing laws. by trying to control dealer prices

nconantj · Jan 21, 2022

personalt said:
Sure..but this does need to be balanced against GM appearing to violate federal price-fixing laws. by trying to control dealer prices

They do. But if they base it on a reasonable definition of "excessive," the feds would likely look the other way.

A flat $10k would almost certainly be considered excessive. If someone is looking at a $40k WT, $10k is a 25% markup.

A dealer that chooses a relatively low markup as a percentage of MSRP, and made it clear before you placed the order, might skirt through. A 5% markup would translate to $2k on that $40k WT. Annoying, but more fairly priced.

Cmiller81 · Jan 21, 2022

Dark-Fx said:
ADM's aren't actually a violation of the agreement. Requiring additional deposits definitely is.

There's a reason why GM wasn't super specific with what is a violation, but left it worded in a way that leaves it open to interpretation by GM. Abusive ADMs can be viewed negatively by GM.

Chevy_maybe · Jan 21, 2022

That's a good start! There's no way I'll pay a mark-up. I'd would walk away from the Silverado and gm first.

I think someone at gm realizes that their major competitor in the EV space is Tesla, and gm is not going to be able to compete with Tesla's direct and streamlined sales process with a ridiculous, greedy dealer mark-up.

Cmiller81 · Jan 22, 2022

after this email came out I messaged the dealer that I originally had my reservation with if they were still going to charge over msrp. When I first placed my reservation they said they will be. They have yet to email me back with an answer

Bcweir · Jan 22, 2022

Dark-Fx said:
ADM's aren't actually a violation of the agreement. Requiring additional deposits definitely is.

I respectfully disagree. ADMs are a violation of both the letter and the spirit of the dealer manufacturer agreement. There's already a reasonable profit margin built into the MSRP, not to mention profit opportunities in options, accessories, financing, etc. that there is zero excuse to gouge consumers at all with ADMs. The second I see that ADM sticker on the vehicle, I leave the premises. There's no excuse to pay that kind of robbery, and I refuse to enable or support the practice by paying it. I don't HAVE to do business with that dealership, no matter how close or convenient it is to where I live.

Mr DJ · Jan 22, 2022

Chevy_maybe said:
I think someone at gm realizes that their major competitor in the EV space is Tesla, and gm is not going to be able to compete with Tesla's direct and streamlined sales process with a ridiculous, greedy dealer mark-up.

I got news for you, Tesla does the same crap; just less than a month, they raised one of their models up $10K just like that...they are no different...

Chevy_maybe · Jan 22, 2022

Mr DJ said:
I got news for you, Tesla does the same crap; just less than a month, they raised one of their models up $10K just like that...they are no different...

They also decrease prices, presumably to manage demand. The point is Tesla doesn't have rogue, greedy dealers ruining their reputation. Tesla can't keep up with demand either so they must be doing something right. gm won't even utter their name when they talk about their competition.

I have stories spanning decades of scamming and lying from dealerships: GM, Dodge, etc. I literally get anxiety whenever I have to take one of my cars to the dealer. They try to scam me... every... single.. time.

They are a liability IMO to doing business in the present and future. That's partially why I'm a skeptic with the Silverado EV. I like it, and I reserved one, but GM/gm needs to overcome a lot of negative experiences for me to purchase one.

GM to Dealers: NO Silverado EV Dealer Markups or Lose Your Allocation

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