VALUE PROTECTION PLAN (VPP) PLAN CHANGES AND OUTLINE

SUBJECT: VALUE PROTECTION PLAN (VPP) CHANGES EFFECTIVE SEPTEMBER 1, 1990

This is to inform you of enhancements that are being made to the Value Protection Plan in response to dealer feedback. The attached dealer brochure (one copy per dealership) details the revised program's guidelines, dealer obligations, and the Plan's costs and coverages. Highlights of the revised VPP program are as follows:

- For Plans sold on or after September 1, 1990, the Value Protection Plan deductible will be reduced to $50. Plans sold prior to September 1, 1990 will continue to include a $100 deductible provision. Dealer costs and Plan coverages, however, remain unchanged.

- All franchised Cadillac dealers are now considered enrolled and participating in the VPP program. The dealer program enrollment form will no longer be used.

- Value Protection Plans can now be sold to dealership service customers as well as used car customers. When a Plan is sold to a service customer, the vehicle must be inspected and any required repairs completed prior to and within ten days of the sale (effective date) of the Plan. A copy of the new VPP Vehicle Inspection Procedures form is also attached.

Affected VPP sales materials and customer brochures are being reprinted and are expected to be available in September. Additionally, the 1991 Cadillac Service Policies and Procedures Manual will reflect the program's new guidelines.

VPP materials may be requested by calling Cadillac Stationery Control at 1-800-892-2000. Dealers who have enrolled in the Pre-Owned Cadillac Service Merchandising Program will automatically receive a new VPP registration materials kit when they become available in September.

All dealership employes (sales, F & 1, service, etc.) involved with the sale or administration of VPP should be made aware of the above changes. VPP associated forms and sales brochures denoting the current $100 deductible should be overwritten in ink to reflect the new $50 deductible, where appropriate, until new forms are received.

Any questions regarding VPP should be directed to your Cadillac District Sales or Service Manager or Telemanagement Representative.

General Motors bulletins are intended for use by professional technicians, not a "do-it-yourselfer". They are written to inform those technicians of conditions that may occur on some vehicles, or to provide information that could assist in the proper service of a vehicle. Properly trained technicians have the equipment, tools, safety instructions and know-how to do a job properly and safely. If a condition is described, do not assume that the bulletin applies to your vehicle, or that your vehicle will have that condition. See a General Motors dealer servicing your brand of General Motors vehicle for information on whether your vehicle may benefit from the information.