Sources: Saturn to Discontinue Vehicle Exchange Program in the New Year

[Charlie]

A new story entry has been added:

[drupal=2788]Sources: Saturn to Discontinue Vehicle Exchange Program in the New Year[/drupal]

SaturnFans.com has learned from several reliable sources that Saturn will discontinue its Vehicle Exchange Program (VEP) on December 31, 2008 in an effort to cut costs and help create a more profitable business model for the company in the future. The program will reportedly continue to be offered on new Saturn vehicles sold and delivered through the end of the month.

[John10]

Sounds like a ramp up for an after Christmas clearance sale. No exchanges, no returns. All we need to know now is what the prices will be and how the warranties will be guaranteed. If they can somehow maintain consumer confidence in the warranties, the lack of exchange should be a non-issue except to a few Saturn traditionalists. A much bigger matter will be getting the credit market to open up for a wider range of customers. Even with potential deep discounts involved, few people have the money to buy a new car with cash.

[03Vue]

Originally Posted by John10

All we need to know now is what the prices will be and how the warranties will be guaranteed.

And what type of guarantee would you trust?

If GM is liquidated, it doesn't matter what anyone promised you between now and then, the warranty is unlikely to be honored.

The way I see it, if GM is not liquidated, these are the possibilities:
1.They keep or kill Saturn. Either way, the warranty will be honored. Even if GM kills Saturn, it must back the warranty. If they try not to no one will trust any warranty on any of their products.
2.The sell Saturn. In this case, either GM retains warranty obligations on previously sold cars (same as case 1), or the buyer will be obligated to honor the warranty.

If GM goes through bankruptcy (but not liquidation), they could theoretically default on any or all their obligations. This includes warranties. But I can't imagine them defaulting on the warranties because again – no one would ever trust their warranties again.

The way I see it, it comes down this: If GM is liquidated, nothing anyone told you about warranties means anything. If they're not liquidated, the warranty will be honored.

BTW, Has anyone actually read a recent lease contract? If the maker went under (voided warranty), and the car has a catastrophic failure, who is screwed? For example, does the lease contract require the individual to fix the car out of their pocket before turning it in?

[s-seriesguy]

The also need to get rid of the no haggle price. Since someone could just as well go down the road to the GM dealer and get a better vehicle for a better price.

[onefunkar]

the good news is that means we will still be here for awhile. also why would it be better to raise msrp and then haggle?

[John10]

Originally Posted by 03Vue

And what type of guarantee would you trust?

If GM is liquidated, it doesn't matter what anyone promised you between now and then, the warranty is unlikely to be honored.

The way I see it, if GM is not liquidated, these are the possibilities:
1.They keep or kill Saturn. Either way, the warranty will be honored. Even if GM kills Saturn, it must back the warranty. If they try not to no one will trust any warranty on any of their products.
2.The sell Saturn. In this case, either GM retains warranty obligations on previously sold cars (same as case 1), or the buyer will be obligated to honor the warranty.

If GM goes through bankruptcy (but not liquidation), they could theoretically default on any or all their obligations. This includes warranties. But I can't imagine them defaulting on the warranties because again – no one would ever trust their warranties again.

The way I see it, it comes down this: If GM is liquidated, nothing anyone told you about warranties means anything. If they're not liquidated, the warranty will be honored.

BTW, Has anyone actually read a recent lease contract? If the maker went under (voided warranty), and the car has a catastrophic failure, who is screwed? For example, does the lease contract require the individual to fix the car out of their pocket before turning it in?

I don't believe GM will be liquidated now that the government loan has been approved. I also believe both the government and GM also are smart enough to understand that the warranty issue has to clearly be dealt with in any controlled reorganization package. Its in everyone's interest, including the government as the lender, to restore consumer confidence in GM so that they can actually sell new cars. I predict the warranty question will be addressed quickly and clearly to the benfit of the consumer.