Some Volt dealers balk at tool tab

[ne_one]

Some Volt dealers balk at tool tab
Automotive News
January 2, 2012
by Mike Colias

Some Chevrolet dealers have stopped carrying the Volt after deciding that their sales didn't justify an additional $5,100 for tools to service the plug-in hybrid.

Last month, General Motors notified Chevrolet dealers of the added cost for tools, among other requirements, to keep selling and servicing the Volt.

This year, 2,614 Chevrolet stores were certified to sell the Volt. She said 70 percent of Volt sales are generated by the 300 highest-volume dealerships. On Jan. 1, 2012, Chevrolet had 3,079 dealerships, according to the Automotive News Data Center.

Through November, Volt sales more than tripled from the year-earlier period, to 20,828.

As of January, GM wants Chevrolet service technicians to remove and ship sections of the Volt's 435-pound battery pack to GM for repair, rather than shipping the entire pack. To do that, they need a $4,735 battery depowering tool to drain the battery before removing a section. The device accounts for the bulk of dealers' additional costs.

Full article at link.

[the_smurf2008]

We for one have stopped carrying the Auto. As I have posted before , there is just not a market for most of us.

[Highlander]

Can't GM have some regional trucks with the device (like the parts delivery truck) to service multiple dealers in a region. Granted, this makes scheduling service a bit less flexible, but perhaps more cost effective? Given I don't know the discharge device's requirements and other factors, so perhaps I'm talking out of my backside, but for a limited use item like this, it just seems there has to be some alternative like this.

[Hitman1970]

You know dealers margins are getting dangerously thin if a $5K tool breaks the bank.

[ne_one]

You know dealers margins are getting dangerously thin if a $5K tool breaks the bank.

And let's face it, $5k gets you a lot of climbing walls and fish ponds.

[bballr4567]

Having been to several dealerships that flat out tell you, "Well, we dont stock it because the manager doesnt want to order it" its a frustrating thing to hear. Dealers are probably more hard headed than GM execs.

Customers arent going to want to drive a vehicle that the dealer has no confidence in.

[calgaryhhr]

The thing that also really sucks with respect to this is the ability for an owner to service the vehicle when away from their home/selling dealership. What if the Volt owner has some sort of maintenance issue while on a vacation or road trip? What if the owner moves to an area without an authorized dealership? That would really suck.

[mchicha]

GM dealers are one of its biggest problem. Can you imagine driving into a Dealer with a Chevrolet car sold in America and getting told 'we do not service that here'? Man, i can understand a grey market import, but a regular car sold in this market, no way.

[spyderman61]

Barring dealer lawsuits maybe GM should consider selling this vehicle as a corporate vehicle if the dealers do not want to purchase the proper tools to service it. But as we know they will sue GM to the hilt.

[megeebee]

And let's face it, $5k gets you a lot of climbing walls and fish ponds.

Free massages

Face painting for the kids.

etc.

[richmond2000]

I think GM still wants a few "supercentre" dealers and get rid of the MOM and POP dealers so GM can have more control and less chance of "ROGUE" dealers
I assume if the situation got bad enough that GM could sell/give the discharge tool to the regional rep to loan to the dealers on an as needed bases

I know MB did the same thing with the Diesel sprinter / Diesel Jeeps / Diesel "E" class and the dealers had to get CRD certified to carry the CRD powered cars/Vans

so one in five Dodge dealers could fix your Jeep ETC

[syr74]

Dealerships usually do stuff like this when they've already been burned on a product. For example, asking a dealership to spend more money to invest in a product they have already taken a loss on is probably going to get a sour response. Put more simply, if these dealerships were making money on this car they would have bought the tool. The reality is that, in some locales, the market for a car like the Volt just isn't going to be large enough to justify investing into the same outside of sheer generosity, so I'm not surprised we are seeing this.

[MrCritical]

There's a missing piece of the puzzle here, guys.

No mention of exactly what GM wants to pay the dealer under warranty for each use of this $5k tool. I'm guessing a pittance.

There's your problem.

Dealers shouldn't be asked to subsidize GM's tool program.

I'm guessing GM is wanting to pay the dealer a warranty rate of .9hr labor each use of the tool, or something similar. If you are a small dealer and use the tool twice a year, you'd raise holy hell too.

[Rocket 88]

I know MB did the same thing with the Diesel sprinter / Diesel Jeeps / Diesel "E" class and the dealers had to get CRD certified to carry the CRD powered cars/Vans

so one in five Dodge dealers could fix your Jeep ETC

I like Dodge. I drive a Charger. But trust me, only one in three Dodge dealers can fix anything so that's not terrible odds on the Jeep ETC.

[demonspeed]

There's a missing piece of the puzzle here, guys.

No mention of exactly what GM wants to pay the dealer under warranty for each use of this $5k tool. I'm guessing a pittance.

There's your problem.

Dealers shouldn't be asked to subsidize GM's tool program.

I'm guessing GM is wanting to pay the dealer a warranty rate of .9hr labor each use of the tool, or something similar. If you are a small dealer and use the tool twice a year, you'd raise holy hell too.

That's a fair angle to consider, at least from the dealer's perspective.

On the other hand, if one wants to sell/service Chevrolet's, they need to do whatever it is that is required of a franchisee. Don't like to rules? Don't sell/service Chevrolet's. Simple.

Just another step towards retail outlets of new car sales in the USA -- which is how it should be. CONSISTENCY!