Spent too many of my years in GM dealers. Warranty is a break even or small profit at best. GM does allow a markup on parts, but the labor rate allowed is very low. A way to figure warranty labor rate is it is around two thirds of the posted customer pay rate. For instance, we had a customer rate of 75.00 an hour, our warranty rate was 47.50. The warranty rate is never higher than the customer rate, as some have posted. The factory is the best customer and gets the best rate.
The real loser is the mechanic doing the job. Recently, OE's have figured out they can cut the time allowed per job to short the dealer and in turn, the tech. This is why I quit the dealer scene 4 years ago, there was no sense in doing the work for free. Dealers are increasing staffing their service departments with Jiffy Lube techs to replace the knowledge that has left. Low hours paid per job is what leads to all the pushy upsells and wallet flushes.
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Today's Featured Article - The Tractor Parade: Story of a Case SC - by Bernie DeLon. On a early fall morning back in 1994, I opened the newspaper and happened to spy an article about a local antique tractor club having their annual show that weekend.
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