GM will limit warranty transfers and ban buyers from flipping Hummer EVs

GM doesn’t want people buying some of its newer and most sought-after models, such as the GMC Hummer EV, to quickly sell them for a profit. The automaker is implementing several aggressive measures meant to discourage the practice, even if it ends up losing the company some customers. In a letter obtained by Corvette Blogger, Steve Carlisle, GM President for North America, told the GM Dealership team that the company is “limiting the transferability of certain warranties” if the vehicle being resold was purchased within the past 12 months. Further, GM will ban the seller from “placing future sold orders or reservations for certain high demand models (as identified by GM).”

Carlisle said the models affected by this new rule are the GMC Hummer EVs (SUT and SUV), the 23MY Cadillac Escalade-V and the Chevrolet Corvette Z06. GM has been struggling to keep up with the demand for its electric Hummer vehicles, and the company said it’s because it was developed from scratch and was built on top of its new Ultium EV platform. According to a Wall Street Journal report earlier this month, GM has only been producing up to a dozen electric Hummers a day. A spokesperson told the publication that the company’s output will increase sharply in the second half of the year, but the automaker has over 70,000 reservations for the vehicle, and some people may run out of patience and just purchase from a reseller. 

“When vehicles are quickly resold, particularly by unauthorized dealers or other resellers that do not adhere to GM’s standards, the customer experience suffers and GM’s brands are damaged,” Carlisle said, explaining the reason behind the automaker’s decision. “These changes are being implemented to ensure an exemplary customer experience, to ensure our brands remain strong, and to help prioritize ownership by brand enthusiasts and loyal customers.”

In addition to these particular measures, GM also recently announced that it’s giving $5,000 in reward points to customers who keep their eighth-generation Corvette Z06 sports car for a year.