GM will limit warranty transfers and ban buyers from flipping Hummer EVs

GM doesn’t want people who buy some of its newer and most desirable models, like the GMC Hummer EV, to quickly sell them for a profit. The automaker is introducing several aggressive measures designed to discourage the practice, even if it means the company loses some customers. Received in a letter from Corvette blogger, Steve Carlisle, GM president of North America, told the GM dealer team that the company “restricts the transferability of certain warranties” if the vehicle being resold was purchased within the last 12 months. In addition, GM will prohibit the seller from “placing future sales orders or reservations for certain high demand models (as identified by GM).”

Carlisle said the models affected by this new rule are the GMC Hummer EVs (SUT and SUV), the 23MY Cadillac Escalade-V and the Chevrolet Corvette Z06. GM is struggling to keep up with demand for its Hummer electric vehicles, and the company said that’s because it was designed from the ground up and built on its new Ultium EV platform. according to a Wall Street Journal Reports earlier this month GM was only producing up to a dozen electric Hummers a day. A spokesman told the publication that the company’s production will ramp up sharply in the second half of the year, but the automaker has over 70,000 reservations for the vehicle, and some people may lose patience and just buy from a reseller.

“When vehicles are quickly resold, particularly by unauthorized dealers or other resellers who don’t hold up to GM’s standards, the customer experience suffers and GM’s brands are damaged,” Carlisle said, explaining the automaker’s decision. “These changes are being implemented to ensure exemplary customer experiences, to ensure our brands remain strong, and to help prioritize ownership from brand enthusiasts and loyal customers.”

In addition to these special promotions, GM also recently announced that customers who keep their eighth-generation Corvette Z06 sports car for a year will be given $5,000 in reward points.

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