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

GM doesn’t want people buying a few of its newer & most sought-after models, like the GMC Hummer EV, to quickly sell them for a profit. The automaker is implementing several aggressive measures designed to discourage the practice, even though it eventually ends up losing the business some customers. In a letter obtained by Corvette Blogger, Steve Carlisle, GM President for THE UNITED STATES, told the GM Dealership team that the business is “limiting the transferability of certain warranties” if the automobile being resold was purchased within days gone by 12 months. Further, GM will ban owner from “placing future sold orders or reservations for several popular models (as identified by GM).”

Carlisle said the models suffering from this new rule will be the GMC Hummer EVs (SUT and SUV), the 23MY Cadillac Escalade-V and the Chevrolet Corvette Z06. GM has been struggling to maintain with the demand because of its electric Hummer vehicles, and the business said it is because it had been developed from scratch and was built along with its new Ultium EV platform. In accordance with a Wall Street Journal report earlier this month, GM has only been producing up to dozen electric Hummers each day. A spokesperson told the publication that the business’s output increase sharply in the next half of the entire year, however the automaker has over 70,000 reservations for the automobile, plus some people may go out of patience and just obtain a reseller.

“When vehicles are quickly resold, particularly by unauthorized dealers or other resellers that not abide by GM’s standards, the client experience suffers and GM’s brands are damaged,” Carlisle said, explaining the real reason for the automaker’s decision. “These changes are increasingly being implemented to make sure an exemplary customer experience, to make sure our brands remain strong, also to help prioritize ownership by brand enthusiasts and loyal customers.”

Along with these specific measures, GM also recently announced that it is giving $5,000 in reward points to customers who keep their eighth-generation Corvette Z06 sports vehicle for per year.

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