GM is the dictator (franchisor) as with most automobile manufacturers the franchisee has to abide by the rules and regulations in the franchise agreement. GM in this case is known as the franchisor and the dealer being the franchisee..
Evans waterless coolant
- Thread starter Chevy1925
- Start date
No worries Ben I had my big boy pants on...didn't bother me at all. But I'm glad you said it because it confirms it even more ad to why I can't stand my 2 gm dealers in town...they have super high ratesSorry I didnt mean to come off as harsh as I did...it had been an early morning for me, and at that time I was still working, so I think I was getting a bit grumpy haha.:
But yeah, dealers are not owned by GM in any way. I dont know exactly how it works, im sure they pay some big (maybe its flat rate, maybe its percentage of sales?) fees each year for being a dealer of GM...but as far as piddly little service stuff/profits, nah GM never sees a dime of that.
Ben
Yeah its actually in a dealers best interest to gouge on (non-warranty) labor rates, because its the one thing they dont have to forward to/pay to GM.
GM doesnt pay the dealers jack shit for warranty work. For example GM says/pays the dealer 5 hours' labor for a warranty job will actually end up taking the tech 7 hours....and GM's equivalent "shop pay" for warranty work is peanuts compared to the normal (usually $100/hr+) labor charges that 100% go into the dealers' pockets.
So dealers and techs both generally HATE doing warranty work/labor for GM. But sometimes the dealers get lucky and GM "over estimates" time on warranty jobs...and a tech who works fast can beat the system and get paid by GM for 6 hours work, when the job only took him 4 hours.
Its a complicated system, but the overall moral of the story, is once the truck is out of warranty, and/or non-warranty related service is performed (fluids, brakes, etc).....that money just goes right into the dealers' pockets and thats it.