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To Modify or Not to Modify and the GM "Gold Plated" Drive Train Warranty  If you have unlimited resources and good contacts in the performance tuner world a super project car may just be the ticket. If on the other hand you are a regular guy with limited resources a hyper build may be a bit of a challenge. That challenge may present itself when you blow up your engine, tranny or rear end and the friendly people at GM tell you that the gold plated warranty on your new Vette is also blown. Just like dirty Harry said, “a man has to know his limitations”. The GM warranty question is a real dilemma for all you horsepower addicts out there. For the most part this subject has been an industry "taboo", not many publications are willing to risk advertising dollars by angering the after market industry. The forbidden subject of warranty voiding must however be brought to the surface. Consumers are being misled by some segments of the after market industry into thinking all modifications to new vehicles have the implicit approval of GM. Have you ever seen those two jokers on Horse Power TV tear apart a new car? They replace various factory parts with hi-po after market units and then re-tune the vehicle to squeeze out the extra horses. Never once have I ever heard them mention the warranty crisis they are creating for anyone who follows their advise. The reason for silence is that huge advertising bucks are at stake. GM issued a memorandum that declared a company wide crackdown on performance modifications to vehicles currently under a power train warranty. Any modification that in GM's opinion alters operating parameters or exceeds drive train tolerance specifications will in all probability void the factory warranty. General Motors memo: Re: Identifying After market Non-GM Calibrations GM bulletins 08-06-04-033 (Gasoline Engines) and 08-06-04-006A (Diesel Engines) "General Motors is identifying an increasing number of engine, transmission and catalytic converter part failures that are the result of non GM - after market engine and transmission control calibrations being used. When alteration to the GM released engine or transmission control calibrations occurs, it subjects power train and drive line components (engine, transmission, transfer case, drive shaft and rear axle) to stresses that were not tested by General Motors. It is because of these unknown stresses, and the potential to alter reliability, durability and emissions performance, that GM has adopted a policy to cancel any remaining warranty coverage to the power train and drive line components, whenever the presence of a non-GM / after market calibration is confirmed -- even if the non-GM control module calibration is subsequently removed. Warranty coverage is based on the equipment and calibrations that were released on the vehicle at time of sale, or subsequently updated by GM. That's because GM testing and validation matches the calibration to a host of criteria that are essential to assure reliability, durability and emissions performance over the life of the warranty coverage and beyond. Stresses resulting from calibrations different than those tested and released by GM can damage or weaken components, leading to poor performance and or shortened life. Additionally; non-GM-issued after market engine control modifications often do not meet the same emissions performance standards as GM-issued calibrations. Depending on state statutes, individuals who install engine control module calibrations that put the vehicle outside the parameters of emissions certification standards may be subject to fines and / or penalties. GM service bulletins 08-06-04-033 and 08-06-04-006 outline procedures to identify the presence of non-GM / after market calibrations. GM recommends performing this check whenever a hard part failure is seen on internal engine or transmission components, or before an engine assembly or transmission assembly is being replaced under warranty. It is also recommended that the engine calibration verification procedure be performed whenever diagnostics indicate that catalytic converter replacement is indicated. In February 2009, PQC will begin piloting a process to confirm the ECM calibration is GM-issued. Beginning in February, PQC will require a picture of the engine calibration verification screen, as outlined in the bulletin, before authorizing any V8 engine replacement (both Gas and Diesel). If a non-GM calibration is detected by the dealership, follow the procedures outlined in the bulletin. Once documentation of the non-GM calibration has been received, and verification has taken place through GM, the remaining power train and drive line warranty will be canceled and noted in VISS, and the dealership will receive the following notification: Based on information that has been received, please inform the customer that the Power train portion of the New Vehicle Warranty is no longer in effect for the engine, transmission, drive line and rear axle on VIN XXXXXXXXXXXXXXXXX, due to the presence of non-GM calibrations and / or equipment. The stresses resulting from the non-GM calibrations and / or equipment were not validated by GM and therefore cannot be warranted on any components that are subject to those stresses. Repairs to power train or drive line components that may currently require repair should not be covered under the terms of the new vehicle warranty. The warranty group has been advised of this information and VISS will be updated accordingly" Most of the horse power addicts out there will tell you that GM has to prove that the modification was the root cause of engine or drive train failure. They will also quote the Magnuson Act that prohibits manufactures from specifying the use of OEM parts as a condition for a warranty. We hear this every time we bring up the subject with people who have modified their Corvettes. The following is an excerpt of the law in question: Magnuson-Moss Warranty Act: "No warrantor of a consumer product may condition his written or implied warranty of such product on the consumer's using, in connection with such product, any article or service (other than article or service provided without charge under the terms of the warranty) which is identified by brand, trade, or corporate name; except that the prohibition of this subsection may be waived by the [Federal Trade] Commission if (1) the warrantor satisfies the Commission that the warranted product will function properly only if the article or service so identified is used in connection with the warranted product (2) the Commission finds that such a waiver is in the public interest. The Commission shall identify in the Federal Register, and permit public comment on, all applications for waiver of the prohibition of this subsection, and shall publish in the Federal Register its disposition of any such application, including the reasons therefore." Federal Trade Commission Memo
dated “As you know, Section 102(c) of
the Act prohibits warrantors
from conditioning warranty coverage on the consumer’s using, in
connection with
the warranted product, an article or service identified by brand,
trade, or
corporate name, unless the warrantor provides that article or service
without
charge. In other
words, warrantors may
not claim that a warranty is void simply because a consumer has used an
unauthorized or after market part. In the same vein, no warrantor
may condition continued
warranty coverage on a consumer using only a named or authorized
service
station or dealership for their automobile maintenance.
Simply stated, “[a] warrantor cannot, as a
matter of law, avoid liability under a written warranty where a defect
is unrelated
to the use by a consumer of ‘unauthorized’ articles or service.” However,
warrantors are permitted to exclude liability for
damage or defects caused by Although “[n]o warrantor may
condition the continued
validity of a warranty on the use of only authorized repair service
and/or
authorized replacement parts for non-warranty service and maintenance .
. .[t]his
does not preclude a warrantor from expressly excluding liability for
defects or
damage caused by such “unauthorized” articles or service; nor does it
preclude
the warrantor from denying liability where the warrantor can
demonstrate that
the defect or damage was so caused.” Quoted
from the FTC’s consumer alert page faq Will
using 'after market' or recycled parts void
my warranty? No. An 'after market' part is a part made by a company other than the vehicle manufacturer or the original equipment manufacturer. A 'recycled' part is a part that was made for and installed in a new vehicle by the manufacturer or the original equipment manufacturer, and later removed from the vehicle and made available for resale or reuse. Simply using an after market or recycled part does not void your warranty. The
Magnuson-Moss Warranty Act makes it
illegal for companies to void your warranty or deny coverage under the
warranty
simply because you used an after market or recycled part. Still, if it turns out
that the after market or recycled part was itself defective or wasn't
installed
correctly, and it causes damage to another part that is covered under
the
warranty, the manufacturer or dealer has the right to deny coverage for
that
part and charge you for any repairs. The FTC says the
manufacturer or dealer
must show that the after market or recycled part caused the need for
repairs
before denying warranty coverage. For example if you change the cam and heads in a vehicle for the express purpose of increasing engine power output the vehicle manufacturer can void the drive train warranty on the grounds that the increased levels of power are incompatible with OEM testing and certification criteria. If your tranny or rear end blows up and you have performed engine mods the OEM will claim that the failed part was never tested for power increases beyond factory specifications. The reality of the situation is that the big car manufacturers have unlimited legal resources and will not hesitate to use them. In court GM will simply state that the after market part changed the dynamics of their vehicle validation process. They may even try to get you fined under some of the obscure EPA emission regulations. Our wannabe "green minded" Government will have a field day with that one. Unless you are a major political contributer your chances of bringing GM down are slim to none. We know what you are thinking, "all I have to do is put the factory parts back on before I bring the car to the dealer for warranty work". The reality of the situation is that getting your vehicle back to as delivered from the factory condition may not be feasible after extensive modifications. Take a simple re-flash of your factory ECM for example. Most of the after market re-programmers feature a function that allows the stock tune to be reloaded into the vehicle. The problem is that the dealers test equipment will detect if a re-flash has ever been done to your vehicle. They can even determine when and how many times your stock on board computer has been messed with. Other after market parts that can land you in hot water with the GM warranty group include but are not limited to; cams, heads, gears, headers, CAI systems and nitrous. This cuts deep into the heart of hot rodding as we know it. All GM has to say is that you altered the operating parameters that the vehicle was designed for. If you ever get your case to Federal court the judge, who in all probability is not a gear head, will show little sympathy for your misguided re-engineering of a machine that was designed, manufactured and certified by a major American corporation. People constantly tell us that their modifications were performed at a dealership and were told the mods were acceptable to GM. Yes some dealerships do performance modifications to its customers cars. The consumer's first reaction to the dreaded GM warranty voiding letter is "the dealer said that the modifications were ok". The sad truth of the matter is that in the event of a catastrophic drive train failure GM will request the part be returned to them for inspection along with the vehicles ECM and oil samples. The dealership may be sympathetic but will always cover its own ass first. The dealers role is to supply GM with data. The dealer can make recommendations but is out of the final decision making loop when it comes to major warranty claims. During the recent SEMA event in Vegas we got a chance to speak with two GM Engineering Reps. that were assigned to the Chevy exhibit at the show. They told us that GM is well aware that some dealers are performing unauthorized modifications to their customers vehicles. In an effort to help out the sometimes misinformed customer GM will review each warranty claim to determine if the dealer should be held responsible for the cost of the repairs. This should be a wake up call for the dealers out there that see a quick buck to be made in factory unauthorized after market installations. Chevy dealers take heed, you may be on the hook for warranty claims if GM determines that you hot rodded a customers car. The bottom line is that even a simple mod like a re-flash is grounds for voiding a warranty. I hate to be the bearer of bad news but the fifteen extra horses you gained from that fancy hand held re-programming device may cost you dearly. The cost can actually be calculated by the GM "bean counters". We were told that approximately twenty percent of your new car sticker price accounts for projected warranty coverage. That's a pretty expensive insurance policy that you as the consumer is forced to buy. Our good friends at Government Motors win that money back every time they void a new car warranty. So there you have it, the truth. Like we previously said we will not win any awards from the after-market industry for blowing the whistle on this subject. As we previously said we brought this sensitive subject again at this years SEMA show in Vegas. As of this point the manufacturers and the after-market industry are still struggling to come to some sort of agreement on this issue. Our recommendation is to think very carefully about altering your Corvette prior to the expiration date of your gold plated warranty. The wallet you save may be your own. The Vette Nuts Return to Index Page . |
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