NON-GM PARTS USED FOR WARRANTY REPAIRS

It has come to our attention that some Cadillac dealerships may be using non-GM parts for warranty repairs. In fact, Cadillac recently began testing non-GM camshafts which are currently being used at several dealerships. Based upon these initial tests, it appears that the durability of these parts may be inadequate. Obviously, we are quite concerned about the potential negative impact on customer satisfaction that use of such parts could have. Use of non-GM parts for warranty work also affects warranty reimbursements. Therefore, in order to prevent your dealership from having to face potentially burdensome situations that might arise as a result of using such parts, please ensure you are following appropriate Cadillac Policies and Procedures regarding the usage of non-GM parts for warranty repairs.

As noted in the Dealer Sales and Service Agreement, Section 1.1.4, owners and users of GM vehicles expect the parts used in servicing vehicles are genuine GM Parts and Accessories. However, Cadillac recognizes there may be emergerncy situations when, of necessity, non-GM parts must be used to satisfactorily complete a repair (i.e., the vehicle is inoperative and GM part not available). In such instances, the following policies apply:

- The manufacturer or distributor of the non-GM part is responsible for the warranty on that part and any problems it causes. The non-GM part is not covered under warranty by General Motors.

- The dealer is required to provide to the customer a copy of the warranty on any such non-GM part.

- The dealer must adhere to all disclosure requirements as referenced in Section 1.1.4(a) and (b) of the Cadillac Service Policies and Procedures Manual. To comply with these requirements, the dealer must clearly indicate in writing to the customer any or all parts that are not supplied, authorized, marketed or warranted by General Motors.

- Reimbursement for a non-GM part will be made at the dealer's actual cost plus the handling allowance. If the dealer cost for a non-GM part is greater than the comparable GM part, reimbursement will be considered only with prior approval.

- If it is determined that a dealer is using non-GM parts for warranty repairs when GM parts are available, or if reimbursement was not based on the dealer's actual cost, then the difference between the dealer price plus the handling allowance for the non-GM part and the comparable GM part may be charged back.

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.