The penalties will affect vehicle warranties and future allocations.

gm to penalize flippers of corvette z06, hummer ev suv, escalade-v

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GM continues its hunt for unauthorized dealers and resellers that do not adhere to the automaker’s standards. In a letter obtained by Autoblog, GM North America President Steve Carlisle has presented a reminder to its dealers about their contractual requirements and GM’s policies on selling new vehicles for resale.

The letter serves as a follow-up to a previous one sent in January, warning dealers about high markups and deposits ahead of launches. And while that previous letter covers vehicles like the Corvette Z06, Cadillac Lyriq, and Silverado EV, this new warning pertains to resellers of high-demand and limited production GM products, namely the Hummer EV SUV, Cadillac Escalade-V, and again, the Chevy Corvette Z06.

Gallery: 2023 Chevrolet Corvette Z06

Not all resellers are affected, though. According to the letter, those who will sell the aforementioned vehicles 12 months after taking delivery are to be sanctioned by the new penalties.

The penalties include “limiting the transferability of certain warranties barring the seller from placing future sold orders or reservations.”

Of note, the specific warranties affected were not disclosed as of this writing. The letter states that dealers will be contacted in the coming days for the full details and “the customer acknowledgment requirements to implement this new process.”

GM highlighted that these changes will not impact product recalls.

While this move can help discourage resellers from taking advantage of the ongoing demand-supply situation, as well as abusing their privilege to work directly with a dealer to secure a slot or allocation, there is a danger that a customer could end up owning a vehicle without certain warranties.

GM said that the changes are being enforced “to ensure an exemplary customer experience, to ensure our brands remain strong, and to help prioritize ownership by brand enthusiasts and loyal customers.”

Autoblog has published a copy of Carlisle’s letter to the dealers, which you can access via the source link below.

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