In short: The production delays caused by Covid and the associated component shortages have directly contributed to the massive turmoil that the video game hardware industry is only now beginning to recover from. As it turns out, the auto industry is going through a similar crisis, which GM believes it could just resolve with a controversial new policy.

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In a letter recently sent to U.S. dealers, GM North America President Steve Carlisle outlined changes to three best-selling products: 2023 model and 2023 model. GMC Hummer EV2023 Cadillac Escalade-V and 2023 Chevrolet Corvette Z06.

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GM will limitation the ability to transfer warranties on these models if the original owner resells the vehicle within the first 12 months of ownership. In particular, bumper-to-bumper, transmission, sheet metal, tire and accessory coatings will be canceled for the Corvette and Escalade. On the Hummer EV, bumper-to-bumper, EV engine, sheet metal, tires and accessories under GM warranty will also be void if resold within the first year.

We have been advised that the Hummer EV battery warranty is not affected and the change will not affect the product recall.

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In addition, the seller will be prohibited from placing future orders for certain high-demand GM products.

“These changes are being made to provide an exemplary customer experience, to keep our brands strong, and to help prioritize brand enthusiast and loyal customer ownership,” Carlyle said.

In short, GM designed this policy to keep people from buying a hot-selling model from a private individual (who needs a new car with no warranty?) and to discourage salespeople from getting on GM’s naughty list (who wants to be banned from reserving a future car you really want to?).

We also don’t know if this is a short-term fix for the active seller’s market environment, or if GM plans to make this a permanent change. Once production ramps up and markets return to normal, this policy could backfire, especially among GM’s loyal customers. Essentially, this keeps buyers trapped in a minimum year of ownership and ensures that third-party buyers don’t buy these models from individuals as often. Disappointment may even encourage potential buyers to seek out other models from other automakers in protest.