GM, Indiana clash over warranty reimbursements, surcharges

General Motors is appealing a decision by the Indiana Secretary of State that ordered the automaker to pay restitution to dealers who it found were unfairly surcharged as a result of seeking increased warranty reimbursements.The dispute is a result of recent state legislation that allowed dealers to seek reimbursement for the retail rate for parts and labor for warranty services performed by dealers on behalf of a manufacturer or distributor.According to a protest of violations on behalf of a handful of dealers involved in the request, GM was recovering "essentially" the entire retail reimbursement for costs by surcharging on a per vehicle basis -- increasing the price of a vehicle compared to other dealers.GM, according to its appeal filing, believes it has "complied or substantially complied" with all requirements of Indiana's codes. The automaker reiterated a previous argument from a July letter to the state that it had a uniform warranty reimbursement policy with more than 30 percent of its Indiana dealers that predates a 2016 amendment to the state warranty statute, thus allowing it to surcharge.However, the Indiana Secretary of State's Auto Dealer Services Division found that GM had not established a "uniform parts reimbursement rate" that is greater than the company's nationally established rate at the time its contract with the dealers became effective.Thus, the state, in an Aug. 27 order, mandated that GM cease the alleged "unfair practice" and pay restitution to the dealers.GM, in its appeal filing, also questioned if the Indiana Secretary of State has the authority to order such actions and asks officials to vacate the order.A preliminary hearing on the appeal is scheduled for Wednesday before the Auto Dealer Services Division in Indianapolis.

GM, Indiana clash over warranty reimbursements, surcharges

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