File No.: CT-2005-004 Registry Document No.:
COMPETITION TRIBUNAL IN THE MATTER OF the Competition Act, R.S.C. 1985, c. C-34, as amended; IN THE MATTER OF an application by Construx Engineering Corporation for an order pursuant to section 103 .1 granting leave to make application under sections 75 and 77 of the Competition Act;
AND IN THE MATTER OF an application by Construx Engineering Corporation for an interim order pursuant to section 104 of the Competition Act.
BETWEEN: CONSTRUX ENGINEERING CORPORATION Applicant CDMPETITIONTRIBUNAL TRIBUNAL DE LA CONCURRENCE
TILED I PRODUIT GENERAL MOTORS OF CANADA LIMITED April 25, 2005 CT-2005-004
Olanta! Fortm for I pour REGISTRAR I REGISTRAIRE Respondent OTTAWA, ONT. l # 0001b AFFIDAVIT OF GEOFFREY LEIGH ZALDIN Affirmed April 11, 2005
I, GEOFFREY LEIGH ZALDIN, of the City of Vaughan, in the Province of Ontario, AFFIRM AND SAY AS FOLLOWS:
1. I am the President of the Applicant, Construx Engineering Corporation ("Construx"), and as such have knowledge of the matters hereinafter deposed to, except where such matters are stated to be based on information and belief, and where so stated, I verily believe those matters to be true.
- 2 -2. I make this Affidavit in support of an application by Construx for an order pursuant to section 103.1 of the Competition Act, R.S.C. 1985, c. C-34, as amended (the "Act") granting leave to Construx to make an application pursuant to sections 75 and 77 of the Act and in support of an application by Construx for an interim order pursuant to section 104 of the Act against the Respondent General Motors of Canada Limited ("GM").
The Parties GM 3. GM is a corporation incorporated under the laws of Canada with its head office in Oshawa, Ontario. GM is a wholly owned subsidiary of General Motors Corporation, a manufacturer of transportation products, including automobiles, with headquarters in Detroit, United States of America.
4. GM manufactures transportation products, including automobiles, ("GM motor vehicles") in Canada for sale in Canada and for export to the United States. GM has established a distribution system through which dealers authorized by it sell new GM motor vehicles and motor vehicles manufactured outside Canada by an entity related to GM to customers throughout Canada.
CONSTRUX 5. Construx, a corporation incorporated under the laws of Ontario, is a wholesale dealer and broker of transportation products, including automobiles. It has carried on business as a purchaser of such transportation products, including GM motor vehicles. It purchased those motor vehicles primarily from authorized GM dealers within the Province of Ontario or acquired them from other entities who, to the best of my information and belief, purchased them from authorized GM dealers in Ontario.
- 3 -6. GM has refused to sell GM motor vehicles directly to Construx. 7. Once Construx purchases a transportation product it either exports it to a buyer outside Canada or resells it to a buyer located in Canada. To the best of my knowledge and belief such buyers in Canada generally export those products.
GM's Refusal to Deal and Market Restriction 8. Construx has been carrying on the business of purchasing new transportation products for export from and resale in Canada since 1995. It has been exporting and reselling new transportation products for approximately 10 years.
9. During the period Construx has been exporting and reselling new transportation products, it has acquired a significant quantity of new GM motor vehicles from authorized GM dealers.
JO. Construx's ability to purchase new GM motor vehicles directly or indirectly from authorized GM dealers has now been terminated.
11. Jn an attempt to prevent its authorized dealers from selling new GM motor vehicles to parties such as Construx, GM and all other major Canadian manufacturers and distributors of transportation products have established a uniform policy of preventing the export and resale of new transportation products offered for sale in Canada as well as preventing the import of new transportation products into Canada by such parties.
12. Jn order to become and remain an authorized GM dealer in Canada, it is necessary for a dealer to execute a number of written agreements with GM. Certain of these agreements are referred to in paragraph 13 hereof.
-4-13. GM has vigorously sought to thwart the export from, resale in and import into Canada of new GM motor vehicles or new motor vehicles manufactured outside Canada by any entity related to GM. It has curtailed the viability of Construx in the following, amongst other, ways:
(!) GM includes the following Vehicle Export provision in Article 5.l.2(a) of its Dealer Sales and Service Agreement ("Dealer Agreement"):
It is the policy of General Motors not to sell or allocate new Motor Vehicles to Dealers for sale or use outside Canada ....T herefore, Dealer agrees that this Agreement authorizes Dealer to purchase new Motor Vehicles only for resale to customers located and resident in Canada for personal use or for a primary business use other than resale and that Dealer is not authorized by this Agreement to directly or indirectly sell Motor Vehicles for resale or primary use outside Canada;
Attached hereto and marked as Exhibit "A" to this my Affidavit is a GM Home Office Letter dated February 18, 2003, containing the aforesaid provision.
(2) GM includes the following Sale for Resale provision in Article 5.1.2(b) of its Dealer Agreement:
It is the policy of General Motors not to sell or allocate new Motor Vehicles to Dealers for resale to persons or parties engaged in the business of reselling, brokering (including professional auto buying services) or wholesaling .... Therefore, Dealer agrees that this Agreement authorizes Dealer to purchase Motor Vehicles only for resale to customers for personal use or for primary business use other than resale and that Dealer is not authorized by this Agreement to directly or indirectly sell Motor Vehicles for resale to wholesalers, brokers (including professional auto buying services) or agents .... ;
The aforesaid provision is contained in the GM Home Office Letter marked as Exhibit "A "hereto.
(3) GM includes the following Penalty Provision m Article 5.l.2(d) of its Dealer Agreement:
- 5 -General Motors may, from time to time, issue a policy regarding reasonable charges to be paid by Dealer to General Motors in relation to the sale or lease of vehicles in contravention of this Article 5.1.2 and Dealer agrees to pay the charges set out in such policy;
The aforesaid provision is contained in the GM Home Office Letter marked as Exhibit "A " hereto.
( 4) GM debits back to its authorized dealer any rebate, refund, credit, incentive, allowance, discount or payment of any kind paid to the authorized dealer by GM on the sale of new GM motor vehicles if the authorized dealer has not complied with GM's policy of Vehicle Exports or Sale for Resale;
The aforesaid statement is contained in the GM Home Office Letter marked as Exhibit "A " hereto.
(5) GM compiles and maintains an updated list of individuals and parties who are "suspected" of purchasing new GM motor vehicles for use outside Canada or for the purpose of reselling vehicles in Canada. The list, known as the List of Suspected Exporter/Reseller, is continually updated and is available on the GMinfoNET website (www.gminfonet.com) in order to alert and prohibit authorized GM dealers from selling new GM motor vehicles to persons or companies on the list. To the best of my knowledge and belief, Construx and related entities are currently on this list;
Attached hereto and marked as Exhibit "B" to this my Affidavit is a web-page print out oft he GM List ofS uspected Exporter/Reseller dated November 8, 2002.
(6) GM refuses to supply an authorized dealer with new GM motor vehicles if the purchaser is a known or "suspected" exporter or reseller of new GM motor vehicles, whether or not a purchase agreement has been entered into between a prospective purchaser and an authorized GM dealer;
- 6 -(7) GM threatens to, and does, curtail an authorized dealer's new GM motor vehicle allocation if it has not complied with GM's policy of Vehicle Exports or Sale for Resale;
The aforesaid statement is contained in the GM Home Office Letter marked as Exhibit "A "hereto.
(8) GM refuses warranty coverage outside of Canada for new GM motor vehicles sold in Canada and put into service on or after September I, 2002 unless,
(a) the motor vehicle has been in service for at least 6 months and has traveled more than 12,000 kilometers, or
(b) the motor vehicle is owned by a Canadian who is outside of Canada as a tourist or by reason of relocation and can provide proof of the same;
The aforesaid statements are contained in the GM Home Office Letter marked as Exhibit "A " hereto.
(9) GM includes in its Competitive Assistance Program agreements, which concern the sale of new GM motor vehicles at volume discounts, restrictions and prohibitions against the export from and resale in Canada of such vehicles;
Attached hereto and marked as Exhibit "C" to this my Affidavit is a web-page print-out, dated September 24, 2004, containing information on the GM Competitive Assistance Program.
(I 0) GM includes in its Emollment Form for Fleet Customers the following provisions regarding the export from and resale in Canada of new GM motor vehicles:
- 7 -New Motor Vehicles ordered under fleet programs must be delivered, registered and retained in service in Canada by the first Qualified Fleet Customer for a minimum of six (6) months and 12,000 kilometers for Lease, Commercial and Daily Rental operation from the date of delivery, or as otherwise defined by GM Canada. By executing this enrollment fonn, the Fleet Customer certifies that no motor vehicles ordered under the Fleet Program, are being or will be purchased or leased, directly or indirectly, for export, sale or use outside Canada, or for resale in Canada. Fleet Customer is hereby notified that the agreement between GM Canada and Dealer prohibits sales by Dealer to persons who export or resell the motor vehicles within Canada .
. . .T he Qualified Fleet Customer agrees to provide, upon request from GM Canada or selling Dealer, business records and registration information confirming that vehicles purchased and registered solely for use in its Canadian operation and transferred only in accordance with GM Canada program requirements. In the event that the Fleet Customer orders new motor vehicles from a Dealer and identifies them as fleet units eligible for GM Canada fleet programs and the vehicles are not used by the Fleet Customer in accordance with program requirements, as determined by the Fleet Customer's business records or registration information, GM Canada will take appropriate action. This may include, but is not limited to, the Fleet Customer or Dealer being disqualified from future participation in fleet programs and Fleet Customer or the Dealer being charged by GM Canada for the amount of any special allowances, incentives, special option packages or other promotional programs which GM Canada paid or credited the Dealer or the Fleet Customer as a result of the Fleet Customer's inaccurate representations;
Attached hereto and marked as Exhibit "D" to this my Affidavit is a GM Enrollment Form.for Fleet Customers containing the aforesaid provisions.
(I I) GM includes in its Upfitters Program agreements, which concern the sale of incomplete new GM motor vehicles to customers who perform specialized completions, restrictions and prohibitions against the export from and resale in Canada of such GM motor vehicles;
The aforesaid statement is contained in the GM Home Office Letter marked as Exhibit "A " hereto.
(12) GM prohibits the import into Canada of new GM motor vehicles or new vehicles manufactured outside Canada by any entity related to GM that were not originally manufactured for distribution, sale, registration and
- 8 pnmary use m Canada. In addition, GM refuses to pay for warranty repairs on such motor vehicles. Construx is accordingly prevented from importing motor vehicles manufactured outside Canada by an entity related to GM for sale in Canada or for export;
Attached hereto and marked as Exhibit "E" to this my Affidavit is a GM Home Office Letter dated November 26, 2003, containing the aforesaid statement.
(13) If an authorized GM dealer participates in the purchase or sale of motor vehicles manufactured outside Canada by an entity related to GM and not intended for sale in Canada, GM threatens to, and does:
a) reduce new GM motor vehicle allocations to the authorized dealer; b) restrict or discontinue the authorized dealer's opportunity to receive high demand models of new GM motor vehicles; and
c) charge back to the authorized dealer any payments made on the sale of such motor vehicles.
The aforesaid statements are contained in the GM Home Office Letter marked as Exhibit "E" hereto.
Effect on Construx 14. GM's refusal to allow any of its authorized dealers to supply Construx with new GM motor vehicles and its prohibition against the import into Canada of motor vehicles manufactured outside Canada by an entity related to GM has had a devastating effect on Construx. Construx has suffered and continues to suffer substantial diminution of its business.
- 9 -15. Between 1997 and 2003, Construx's sales of new GM motor vehicles was $6,869,817.93 representing some 38% of Construx's total sales. In 2004, however, Construx was unable to acquire and sell any new GM motor vehicles.
16. As a result of GM's efforts to prevent the export from and resale in Canada of new GM motor vehicles, Construx has been unable to fulfil purchase orders from its customers. For example, in 2003, Construx was unable to satisfy orders for 120 sport utility vehicles and other similar vehicles of which sales would have represented a profit of approximately $2,000.00 each and 200 Chevrolet Avalanche and heavy duty diesel pickup trucks at an approximate profit of $1,250.00 each, for a total loss of $490,000.00.
17. As a result of GM's efforts to prevent the import into Canada of new motor vehicles manufactured outside Canada by an entity related to GM, Construx has also been unable fulfil purchase orders from its customers. For example, in 2003, Construx was unable to satisfy orders for 15 Chevrolet SSRs of which sales would have represented a profit of approximately $5,000.00 each, for a total loss of $75,000.00. Chevrolet SSRs are manufactured in the United States by General Motors Corporation.
18. In the year 2003 Construx sold some 53 new GM motor vehicles to customers. Those new GM motor vehicles represented some 67% of all new motor vehicles sold to customers by Construx in 2003. In the year 2004 the number of new GM motor vehicles sold by Construx had dwindled to zero.
19. Construx has always met and is able to continue to meet the usual trade terms of purchasing new GM motor vehicles. The usual trade terms of purchasing a new GM motor vehicle from GM dealers include a small deposit upon placement of a factory order and a subsequent payment by certified funds prior to the release of the motor vehicle. However, provisions regarding vehicle exports or sale for resale in purchase agreements between authorized GM dealers and their customers are not part of the usual trade terms.
- 10 -20. To the best of my knowledge and belief there is an ample supply of new GM motor vehicles in the market. Authorized GM dealers are more than willing to supply Construx with new GM motor vehicles especially at a time when customer sales are declining and there are too many vehicles in their inventory. Those dealers are restrained from doing so by the restrictions described in paragraph numbered 13 above. One of the reasons why authorized GM dealers face an oversupply of new GM motor vehicles is because of GM's refusal to allow its authorized dealers to sell new GM motor vehicles to parties such as Construx.
21. Customers and potential customers of Construx located in Canada and outside Canada have requested Construx to supply them with new GM motor vehicles. The measures instituted by GM as described above and, in particular, in paragraph numbered 13 have prevented Construx from doing so. Construx is no longer able to compete in reselling new GM motor vehicles in Canada or in exporting new GM motor vehicles to destinations outside Canada.
22. Customers and potential customers of Construx that are located either in Canada or outside Canada must deal with the Export Division and/or Global Fleet Division or a local entity related to General Motors Corporation in order to acquire new transportation products. To the best of my knowledge and belief such customers no longer have any practicable choice of alternative suppliers of new motor vehicles manufactured by GM, General Motors Corporation or any related entity.
23. It is not possible for Construx to purchase new GM motor vehicles from any sources other than through authorized GM dealers. GM does not supply motor vehicles directly, it supplies new motor vehicles to customers such as Construx through its authorized dealers. In addition, the substantial number of Construx's customers who would place orders for new motor vehicles manufactured outside Canada by an entity related to GM and imported into Canada are authorized GM dealers. If authorized GM dealers are not allowed to sell new GM motor vehicles to Construx or purchase new motor vehicles imported by Construx, Construx will continue to suffer irreparable harm.
- 11 -24. To remain viable, Construx urgently needs to be able to purchase new GM motor vehicles for export from and resale in Canada. It also needs to be able to import into Canada motor vehicles manufactured outside Canada by entities related to GM.
25. If interim relief is not granted to Construx in the form of an order that GM take no action to prevent or sanction its authorized dealers from selling new GM motor vehicles to Construx on usual trade terms or from purchasing motor vehicles manufactured outside Canada by an entity related to GM, Construx will lose its remaining customers who still want to place orders for new GM motor vehicles. Construx cannot continue in business and lose more customers.
26. Should an interim order be granted, Construx is prepared to give an undertaking in damages.
AFFIRMED BEFORE ME at the City of Toronto, in the Province of Ontario, this 11th day of April, 2005.
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Page 2 of 8 Date: 3/10/2005 Time: 5:29:12 PM From: To: Fax#416 360-5960 p 1/7 ~ HOME OFFICE LETTER Number: 2003--028R Date: 02·18-2003 Subject: VEHICLE EXPORT ANO SALE FOR RESALE To: ALL GENERAL MOTORS OF CANADA DEALERS/ SSI RETAILERS
Please attach a copy of this letter to your copy of HOL 02-050 and revisions. A few minor revisions have been made to the original HOL Please replace your entire copy of 2003-028 with this revision.
WHAT'S NEW (Subject to Program Template Guidelines): GMCL is consolidating HOL's 2002-050R, 2002-102 ;/lnd 2002-124 Into this HOL, containing sll Information pertinent to vehicle export activity under the following sections which are set out below:
"VEHICLE EXPORT AND SALE FOR RESALE", "VEHICLE ALLOCATION CURTAILMENT", "WARRANTY AND ODOMETER POLICY ON CANADIAN VEHICLES EXPORTED TO THE U.S."
1. VEHICLE EXPORT ANO SALE FOR RESALE We have cornmunieated to you on several occasions, both 'Jerbally and in writing, expressing our serious concern regarding new vehicles that are sold for the purpose of export or resale. Despite the fact that our policy with respect to these unauthorized sales has been clearly articulated over the years, some dealers seem to have disregard for these polieies and their contractual obligations under our Dealer Sales and Service Agreement ("Dealer Agreement"). It is timely, therefore, that we restate our policies with
respect to new vehicle exporting and new vehicle sale for resale. This letter wlll now super!ade all previous Home Office Lelters and related correspondence on these subjects and will be updated as required.
Like many dealers, Genera! Motors of Canada Limited ("GMCL") is worl<ing hard to address the export problem. To !his end, we have recently arranged to receive export data (U.S. registration data, name of Canadien buyer and name of sa!ti11g Canadian Dealer) on a monlhly basis. This will improve our efforts with respect to the Suspected Exporter List and the De<iler Audit Process.
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From: To: Fax#416 360-5960 Date: 3/10/2005 Time: 5:29:12 PM
VEHICLE EXPORT On several occasions, GMCL has advised its Dealers of its concerns respecting the export of new General Motors vehicles to the United States and abroad. Vehicles built by General Motors for sale in Canada are certified In accordanee with safety, labeling, and emission standards. The exporting of these vehicles may result in the contravention of various foreign laws.
As you are aware, the Dealer Agreement authorizes dealers to sell General Motors vehicles only to eustomers localed in Canada. Article 5.1.2(a) of the Dealer Agreement, set out below, expressly prohibits dealers from selling new motor vehicles for principal
use outside Canada.
II ls the po/Joy of General Motors not to sell or allocate new Motor Vehicles to Dealers for sale or use outside Canada. General Motors Corporation has various United States and overseas distribution organizations which are best suited to distribute Motor Vehicles outside Canada, to meet the approval and operational requirements of the area of the world in which they will be operated, and are In the best position to arrange for proper performance of Motor Vehicle warranty repairs,
safety campaign inspections and adjustments and to meet local government requirements. Therefore, Daa/er agrees that this Agreement authorizes Dealer to purohBsa new Motor Vehicles only for rasale to customers located and resident in Canada for personal use or for a primary business use other than resale and that Dealer is not authorized by this Agreement to dirr;ctly or indlreclly sell Motor Vehicles for resale or primary use outside Canada._ Vehicles must be registered in Canada and fetained for pfincipal use in Canada for e period of at least 6 months and at least 12,000 kilometers. This 6·month and 12,000 kilometef retention period in Canada is applicable to all GM vehicles regardless of their source. In other words, this retention applies not only to vehicles purchased new from GMCL, but vehicles purchased at auctions, purchased from other dealers, buybacks and vehicles taken In on tfade (including, for example, trade-ins by participants in the GMCL l:mployee Purchase Program and the GMCL Supplier New Vehicle Purchase Program Plus). Furthermore. GMCL's Fleet and Daily rental programs may have additional restrictions and rules and they must also be followed.
In October 1997, daalel'$/retailers were sent the first list of those Individuals or organizations who were suspected of purchasing new General Motors vehicles for use outside of Canada or for the purpose of reselling vehicles In Canada. Selling to these types of customers causes dealers to be in breach of the Dealer Agreement, under Article 5. This list has been continually updated and now is available on the GMinfoNET site under Owner Operator, New Car Sales and Fleet. Please see Attachment A for Important information.
Jn order to protect the viability and Integrity of General Motors' worldwide distribution and dealer organizations, to protect !ts reputation with its customers, and to generally protect
itself from the damage caused toils customers and dealers from exported vehicles, GMCL, when It has been determined that a new motor vehicle has been purchased from a dealer for resale or primary use outside of Canada, will debit back to the Dealer any rebate, refund, credit, incentive, allowance, discount or payment of any kind paid by GMCL with respect to any such motor vehicle_ Furthermore, GMCL continues to
reserve the right to curtail a dealer's vehicle allocation in re!'ponse to unauthorized
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From: To: Fax#416 360-5960 Date: 3/10/2005 Time: 5:29:12 PM Page 4 of 8 vehicle exports. Affected dealers will be notified of the scope and duration of this curtailment by their Zone Office_ In addition, such activity may amount to a breach of the·
Dealer Agreement and GMCL may take action accordingly. Finally, as stated In Article 5.1.2 (d):
General Motors may, from time to time, Issue a policy regarding reasonable ohsrges to be paid by Dealer to General Motors in relation to the sale or lease of vehicles in contravention of this Article 5. 1.2 and Dealer agrees to pay the charges set out in auoh policy.
Please refer to Attachment A for important guidelines that Dealer should use to help identify purchasers who may be reaellers or exporters.
SALE FOR RESALE As with Export. Sala for Resale is strictly prohibited by the Dealer Agreement Article 5.1.2{b), set out below, clearly slates GMCL's posttion with respect to sale for resale.
It is the policy of General Motors not to sell or allocate new MotorVehicles to Dealers for resale to perso11s or patties engaged In the business of reselling, brokering (Including professional iwto buying seNices) or wholesaling. General Motors has established a Canadian Motor Vehicle distribution organization which is best suited to distribute Motor Vehicles in Canada, and which Is in the best position
to arrange for the proper performance of Motor Vehicle warranty repairs, safety campaign inspections and adjustments. pre-delivery inspections, 011-going maintenance and compliance with government requirements. Then~fore, Dealer agrees that this Agreement authorizes Dealer to purchase Motor W1f1ictes only for
resale lo customers for personal use or for primary business use other than resale and that Dealer is not authorized by this Agreeme11t to directly or indirectly sell Motor Vehicles for resale to wholesalers, brokers (Including professional auto buying seNloes) or agents. Nothing in this Article 5.1.2 is intended to restrict Dealer from selling Motor Vehicles lo other General Motors dealers.
When it has been determined that a dealer has not complied with GMCL's policy on Sale for Resale, GMCL will debit back to the Dealer any rebate, refund, credit. inc\lntive, allowance. discount or payment of any kind paid by GMCL with respect to any such motor vehicle. In addition, such activity may amount to a breach of the Dealer
Agreement and GMCL may take action accordingly. Furthermore, GMCL continues to reserve the right to curtail a dealer's vehicle allocation in response to unauthorized sale for resale. Affected dealers will be notified of the scope and duration of this curtailment by their Zone Office. Finally, as stated in Article 5.1.2 (d): General Motors may, from time ta time, issue a policy regarding reasonable charges ta be paid by Deafer to General Motors i11 relation to the sale or lease of vehio/e!J in contravention of this Miele 5.1.2 and Dealer agrees to pay the charges set out in such policy. 03/10/2005 THU 17:28 !TX/RX NO 74251 14!005
From: To: Fax#416 360-5960 Date: 3/10/2005 Time: 5:29:12 PM
Special Rules for Vehicles sold to $1;1cond Stage Manufac;turers A Second Stage Manufacturer ls a manufacturer and/or distributor of equipment that is Installed on a GM vehicle that results in a COMPLETED vehicle that is designed for a specific application. (Ex<1mples: tow trucks, ambulances, motorhomes. fire trucks, mobility conversions, cranes, limousines.)
There are 2 categories of second stage manufacturers: a) Upfitters who have a valid Recreational and Commercial Vehicle Sales Agreement with GMCL and GMAC (Tri-Party Agreement) to place orders directly with GMCL. Dealers will be provided with an upclated list of these upfitters on GMinfoNET In the coming weeks.
b) Upfitters who have not executed a Tri-Party Agreement with GMCL and GMAC. These upfitters will be required to add a minimum of $4,000 in parts (excluding all labour and taxes) upgrades. These manufacturers must be approved by the GMCL
Commereial Truck Organization and will be recognized by their own Fleet Account Number (FAN). This sale must be '"ported as a Fleet Sale using the upfitter's FAN. Dealers must take all reasonable steps to ensure that the upfitter is bona fide and that tl'le minimum level of upgrades are being performed (including a statement in the sales agreement with the upfitter specifying the upgrade amounts).
While sale for resale is permitted in the specific circumstances noted above, the export of these converted vehicles from Canada is strictly prohibited pursuant to the Dealer Agreement. Oue diligence as described in \he Vehicle Export section of this Home Office Letter should likewise be followed. For example, the end user must register and retain the upfitted vehicle In Canada for at least 6 months and at least 12,000 kilometers. Please note that the sale of converted vehicles must also comply With the
Fleet and/or Dally Rental Programs as described In other Home Office Letters. Please refer to Attachment A for important guidelines that Dealer should use to help identify purchasers who may be resellers or exporters.
GENERAL It should be noted that there may be certain situations where a customer, who ha$ bought, paid for and registered a vehicle In Canada, moves to the United States. tn this situation the customer may be required to obtain a Certificate of Compliance to move the vehicle to the United States. In these situations, GMCL will consider the customer/dealership request for the certificate. The Vintage Services Department of
GMCL should be contacted al 905-644-3367 in these situations.
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From: To: Fax#416 360-5960 Date: 3/10/2005 Time: 5:29:12 PM
www.canada411.ca), does the nameladdren match? !1.. Things to note about the fyture vehicle pick up arrangements by companies: 1. Who will come to the dealership and what is their employment status? 2. Will !hay hava proper documentation/identification? 3. Are you being asked to deliver the vehicles lo a business location? 4. Is it the same addre$S as the purchaser's address? 5. What type of business operates at the drop location? Is it a "flt"? 6. Have you recorded the name of the person picking up the vehicle? Addressing all of these questions is a critical part of the due diligence process. The llUthorized dealer management representative who accepts the deal by signing on behalf of the dealership also needs to verify the legitimacy of the Information presented on the buyer's order before accepting the deal on behalf of the dealership.
Dealers need to ensure two critical business steps are In place in their sales ooorations: 1. Adequata management review of each vehicle purchase agreement occurs before signing. The customer name should be readable, numbered companies should also: have their operating name shown, fleet deals should be scrutinized at least as much' as retail deals within the dealership,
2. Dealer employment contracts, especially those for Sale$ and Fleet department personnel, should contain a clause that references the Dealer Agreement and alloWJe for disciplinary action by the Dealer up to and including dismissal for sales to exporters and resellers.
2. VEHICLE ALLOCATION CU!}TAILMENT The details of Vehicle AlloClltion Curtailment were reviewed with your Dealer Communications Team on August 21, 2002 as noted below.
General Motors of Canada Umited's ("GMCL") Zone staff will review export data to determine which dealers will be subject to an audit of their sales files. Selection will be based on various criteria such as the total number of exports, the number of exports by vehlcle line, exports as a percent of total sales and by vehicle line. Following the Audit and after Senior Management review In Oshawa, a dealer's allocation Will be curtailed when warranted for 90 days. The dealer will be given one week$' advance written notice, in order to allow the dealer to complete transactions that are currently in process.
The 90-day curtailment will be determined on a vehicle line basis and as such could result in more than one vehicle line allocatlon being curtailed at any point in time. GMCL: will reinstate the allocation after the 90-day period if, In the opinion of GMCL, the dealer has demonstrated to GMCL that he or she has taken corrective actions to prevent further export policy violations and there have been no further occurrences warranting ongoing curtailment. Additionally a dealer's allocation index may be reduced to reffa<:t 03/10/2005 THU 17: 28 [TX/RX NO 7 425 I 1@007
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From: To: Fax#416 360-5960 Date: 3/10/2005 llme: 5:29:12 PM
market demand Within the dealer's Area of Primary Rasponsibility. As indicated in Home Office Letter 2002-0SOR, this allocation curtailment policy is part of a l<1rger plan wh!ch is designed to address the export problem imd protect the viability,
and Integrity of General Motors and its dealer networks in Canada and abroad. It is : Important to note that this policy may be amende<J from time to lime and GMCL reseNef
the right to take actions instead of or in addition to those set out in this policy, up to and; Including termination of the Dealer Sales and Service Agreement where warranted. ' 3. WARRANTY AND ODOMETE.~ POLICY ON CANADIAN VEHICLES EXPORTED TO THE U.S.
The policy is as follows: • New vehicles originally sold in Canada with an in-service date on or after September, 1, 2002 must have been in service in Canada for at least s!x months and must have :
at least 12,000 kilometers (7,500 miles) before a GM Dealer/Retailer In the U.S. is t authorized to perform warranty work. Exceptions apply to Canadian owners touring ' in the U.S., Canadians legitimately relocating to the U.S., and work required by a ' GM Product Recall.
• GM"s Policy and Procedure Manuals, both in Canada and the U.S., have lol'\g stated: in Article 1.2.2 that Warranty "coverages do not apply if the odometer has been i disconnected, Its reading has been altered, or the mileage/kllometrage cannot be i determined', Each warranty and owner assistance manual in both Canada and U.S.: contains the same language.
• If the odometer needs to be repaired, replaced or converted from kilometers to mile~ (or vice versa), it is critical that such work be performed properly and only when necessary. Therefore, unless otherwise specifically authorized in writing by GMIGMCL, the customer must go to an authorized GM/GMCL Dealer/Retailer who
in turn will arrange to have such odometer replacement, repairs or convemion performed by a GM authorized Electronic Service Center in the U.S. or Electronic
lnstl\lment Cluster Service Centre In Canada. If the odometer has not been repaired, replaced, or converted according to GM/GMCL's approved process the vehicle warranty will be denied on an ongoing basis.
• When odometers are repaired, replaced or converted using the approved process the vehicle's history 1ile wlll be updated with a claim code. It will be the responsibility 1 of Dealers/Retailers to check each vehicle's history using GMVIS to determine the ! original country of sale, the In-service date, and if the odometer conversion was , authorized. If the vehicle is not eligible for warranty, the Dealer/Retailer must advise: the customer accordingly. GM/GMCL reserves the right to debit Dea!erslRetailers ; for any warranty claims submitted on ineligible vehlcies.
• New vehicles orlg!naliy sold in Canada with an in-service dale before September 1, \ 2002 will not have the warranty restricted In the U.S. solely because (a) the vehicle ! has less than 12,000 kilometers (7,500 miles) and less than sl)( months of service in: Canada or (b) the odometer replacement, repair, or conversion is not completed by ! an approved GM/GMCL source, provided the replacement, repair or conversion is · completed properly. • It is important to note that "either GM nor GMCL are responsible to determine 03/10/2005 THU 17:28 [TX/RX NO 7425) 14J008
Page 7 of 8 p ~/7
Page 8 of 8 Date: 3/10/2005 Time: 5:29:12 PM From: To: Fax#416 360-5960 p l7t7 whether an odometer conversion is required by any applicable law in Canada or the u_s,, or if conversions performed in Canada are acceptable to U.S. authorities or : vice versa.
• For vehicles with ian in-seNice date of September 1, ~002 or later, General Motors '. Protection Plan vehicle seivice contracts will not be honoured if the odometer has i not been converted according to thi'> policy. · I • The list of twenty-five (25) GM authorized Electronic Service Centers in the U.S. anll three (3) Electronic Instrument Cluster Service Centres in Canada are attached for ' your reference_
Please note that GM dealers In the U.S. were advised of the policy on warranty and odometers on September 23, 2002. Furthermore, both GM and GMCL want to emphasize that these actions are not meant to encourage exportation of new vehicles from Canada into the US. for resale. Such actions remain contrary to GM and GMCL policies.
Contact your Zone representalive regarding the inte>rpretatlon of any HOL. Exceptions to any HOL or policy are only effective if made in writing and signed by the Vice President - Sales, service & Marketing or the General Director - Sales.
General Motors of Can1;1da Limited reserves the right to amend or revoke this policy at erny time without prior notice. General Motors of Canada Limited reserves the right to take actions instead of or in addition to those set out In this Home Office Letter.
Final decisions on all matters relating to the interpretation of any rule or aspect of this activity rest solely with General Motors of Canada limited_
M.J. Comeau . Vi<::e President - Sales, Service & Marketing
03/10/2005 THU 17:28 [TX/RX NO 74251 i4J009
This Is Exhibit ...........~ ................ referred to in the affidavit 01.EJg::>.Wxt.\-j···~~h,?QlJ.!.a ... . sworn before me, this ..••........ .J. ...: .'::: ................... . day of• •..•..........•.. f?J.P..d ..\ .. .......•.............. 20.Q~• .•
Domestic 1.0 LIST OF SUSPECTED EXPORTERS/RESELLER Page I of2 LIST OF SUSPECTED EXPORTERS/RESELLER TO: ALL GENERAL MOTORS OF CANADA DEALERS/RETAILERS
STRICTLY CONFIDENTIAL This notice and its contents are to be maintained as strictly confidential and must not be disclosed, released, or distributed to anyone who is not directly employed by the dealership/retailer.
In October 1997, dealers/retailers were sent the first list of those individuals or organizations that were suspected of purchasing new General Motors vehicles for use outside of Canada or for the purpose of reselling vehicles in Canada. Selling to these types of customers causes dealers to be in breach of the Dealer Sales and Service Agreement, under Article 5.
As dealer personnel have been making an increasing number of inquiries about names on the subject list and/or what action should be taken when these individuals or organizations are attempting to purchase new General Motors vehicles, the following du.e dilig5'nce guidelines are offered, in addition to the guidelines set out in previous Home Office Letters (see your Zone representative if you need copies):
• The List of Suspected Exporters/Resellers is strictly confidential and not to be disclosed in any way to suspected Exporters/Resellers as the reason not to sell. The list is not a prohibition to sell, but a warning to be particularly wary of certain customers who may be involved in exporting and/or reselling.
• General Motors cannot divulge the source of information concerning ttle subject list. • The Fleet Command Centre can assist you in setting up a FAN and determining whether a customer has a valid FAN. The existence of a valid FAN does not imply in any way that a particular transaction is automatically approved or is in compliance with all export or sale for resale policies.
• Given the due diligence required by the Dealer at the point of sale, the authorization for any particular sale lies with the Dealer.
The issue of vehicles being exported or sold for resale continues to be a serious concern to General Motors and Dealers alike. Your understanding and use of the above guidelines and other related policies and
procedures is critical.
https:/igminfonet.com/infonetdb/apps/exportcr.nsf
11/8/02
Domestic 1.0 LIST OF SUSPECTED EXPORTERS/RESELLER Page 2 of2 To confirm your understanding of the above and view the "list", click QI{.
https://gminfonet.com/infonetdb/apps/exporter.nsf
11/8/02
Page I of6
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CLASSY CAR LEASING 27 STATION ESSEX STREET, P.O. BOX 12
hlt;AN SWEEP MAYNTEN.4NCE 4963 YONGE NORTH YORK CL!;;GG C.ONT_AACTJN~ 1306 KOOTNEY KAM LOOPS CL!M/~TISATION KL<\-DOU 1859 ST-LOUIS ST LAURENT Ck-.9£KT~Q YYJJ1f_fa,P,i"l_JN( .JG_._ty. 6781 LEFEUVRE ABBOTSFORD SMITH ROAD \:l..~Kf_Q~B._fAP.J~t.!l'Jt'.:., 6781 LEFEVURE ABBOTSFORD t;J,,l.J6: flTTf:;RS ClJSTOt-1 GQt,f 11440 142 EDMONTON c_~;fi ~:. ! '-'Ui0 3.JSB;3Q:i,_ __C _Q2,_Jj:J_b,~ 2109 ST. MONTREAL LAURENT
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3232 CYNTHIA LAVAL 2313 EARLTON CALGARY 2422 ERLTON ST. CALGARY SW, APT. 105
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This is Exhibit ..... ..•.C . ................. referred t°JY, the affidavit of. .~ ~.!j ..~ f.:.. . b.J.._Q. .. sworn before me, this .. ............l .\.~. ....... _ ....... day ot. ............. A.f.?r.;.L .......................... 2!1.Q5... ......... ~; ;~ ~AF~~ ;;~;~~·;F;;;;;;:;
The 2003 Competitive Assistance Program on gmcanada.com. FLEET PROGRAMS Commercial Accounts General Motors of Canada Limited ("GMCL") is pleased to announce the 2005 Model Year GMCL Competitive Assistance Program. The • The 2005 GM Online program is designed to provide Dealers with Competitive Fleet Fleet eBrochure Allowance, to be totally passed on to Fleet customers, which will allow Download The 2005 GM Online us to be competitive in the commercial fleet segment and Government Fleet eBrochure and Regulated Utility business.
A qualified Fleet customer is defined as any business entity (Lease or Commercial), that has five (5) or more registered vehicles ten years old PROGRAMS or newer (cars and/or trucks of all makes), licensed, titled, insured and retained in company service or that will operate five (5) or more vehicles fj,\f.frOij after its present acquisition which are used exclusively for commercial
purposes. In additlon, any business entity that places an order and subsequently takes delivery. of three (3) or more new and unused General Motors vehicles at one time to be used for commercial purposes shall be considered a qualified Fleet customer. Competitive Assistance is no longer stackable with other Fleet
incentives or programs. 4q.1111;M Competitive Assistance (CA) is a competitive allowance, which GMCL may make available on specific vehicle lines for Dealers to pass on to 41f'ii= eligible Fleet customers. Eligible Fleet customers are those who have been assigned their own FAN that remains in good standing at time of vehicle delivery and who otherwise comply with all rules and guidelines.
Specific amounts are authorized for individual customers only when a competitive need is apparent, and are generally based on volume, product availability, competitive offerings and market conditions at the time of application. Amounts may vary by customer. CA may be provided in certain cases only on the basis that the customer first purchases the minimum number of units required to be eligible. CA allowances are provided at the sole discretion of GMCL.
Eligibility: A Customer that is assigned a Fleet Account Number or would qualify for a Fleet Account Number is considered Fleet.
To initiate a request for Competitive Assistance, Fleet customers may contact a GM Dealer, a GMCL Fleet Account Manager or Commercial Truck Sales Manager. or they may inquire through an Independent Leasing or National Fleet Management Company. All applications will be processed through our Fleet Financial Services Group. Fleet Program Coordinators can be reached at 1-800-567-2437.
http://www.gmcanada.com/e nglish/fleet/programs/programs_ commercial.html
Page I of2 FLEET cus· Vehicle Ord• Vehicle Ord, Fleet Warra Contact Flei DISCOVER I Find_ V..ehi_cle G_oodwrencl
•Mii·11M •mtm• f1.:.:.x1w,
9/24/2004
The 2003 Competitive Assistance Program on gmcanada.com. Page 2 of2 Eligible Vehicles: All new and unused 2005 model year Chevrolet (except Chevrolet Corvette), Pontiac, Buick, Cadillac (except Cadillac XLR,) passenger cars and Chevrolet (except Chevrolet SSR), Pontiac, Buick and GMC vans and light duty trucks (except HUMMER).
Program Time Period: Following authorization of a CA Allowance for a specific Fleet customer, the CA will remain in effect for orders placed throughout the balance of the 2005 model year, unless notified otherwise. For early or late product announcements, Dealers should contact Fleet Financial Services to determine availability of incentives.
In-Service Requirements: All eligible vehicles delivered under this program must be licensed, titled and retained for use in Canada for at least six (6) months and 12,000 kilometres by the first eligible Fleet customer who takes delivery of the vehicle.
Vehicles that do not meet all program requirements are ineligible. General Motors of Canada Limited reserves the right to amend or revoke this program at any time without prior notice.
GM Canada reserves the right to audit Dealers records and disqualify any amounts paid which do not qualify under the eligible Program Guidelines listed previously. GM Canada will charge back to the Dealer any amounts paid on ineligible units. General Motors of Canada Limited reserves the right to take actions instead of or in addition to those set
out in this paragraph.
Final decisions on all matters relating to the interpretation of any rule or aspect of this activity rest solely with General Motors of Canada Limited.
..... Topol Page £lee.t > Fleet Programs EJ~uiist~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ OyeNjew I Basic Fleet I B.en1al I Government I Commercial I $erujce Vehjcles
http://www.gmcanada.com/e nglish/fleet/programs/programs_ commercial.html
9/24/2004
This is Exhibit.. ....... D. ................. referred to in the affidavit ot. .G ~9#f.e~.~~t7£.\f!.\0 .. . sworn before me, this .............. l.l.. ....................... . day of... ..........A r,r..~L ........................... 20.Q;?.: .. .......... ~0,_,~~ r~' ~'·-·;AKI'····~~-;.;;~;~~~;;;
GENERAL MOTORS OF CANADA LIMITED FOR GM USE ONLY Enrollment Form for Fleet Customers (Not required for PoliUcal Subdivisions and Pubfic Utilities) FAN ASSIGNED General Motor; of Canada Limited eGM C.Jnadaj makes available to General Motors Dealers. from lilne to lime. Raal allocations. fleet inr.entives and olhM fleet programs In conjunction with lhe SDle or lease of new motor vehicles by Dealers to Qualified Fleet Custon1ers for certain uses In Canada. A Qualified fleet Customer is defined as ariy businBss entity {Daily Rental. lease or Commercial) that has 5 or more registered vehicles {cars and/or lrucks of au makes), rlcensed, lil.led and retained cufrently in company service or that wlll operate 5 or more vehicles after its present acquis.itlon which are Osed for commercial purpose$. In addition, any bu:Uness enlity that plaoes an order (;ind subscquendy takes dollvcry) for 3 or more new ~nd unused General Motors vehicles a! one Ume to be used for commercial purposes shan be considered a Qualified Fleet Customer.
New molar vehicles ordered under fleet prcgrams must be delivered, regislered and retained in service in Canada by lhe first Qualified Fleet Custo~r for a minimum of six {6} monlhs and 12,000 kllomele1s for lease, Commercial and Daily Rental operation from the date of delivery, or as other.vise defined by GM Canada. By ex;ecuting this enroH1nent form, the Fleet Customer certifies that no motor vehicles ordered under the fleet program, are being or will be purchased or teased, directly or indirectly, for export, sale or use outside of Canada. or for rcsalo within Canada; Fleet Customer is hereby notified lhat the agreement between GM Canada and Dealer prohibits S31es by Dearer to persons who export or teseU the motor vehicles within Canada
By executing this enrollment form, the f!eel Customer certmes that they are a Qualified fleet Customer, ackoow1edges lhe fleet prog~m el~ibility requiremeots specified herein and agrees la comply v.ilh them. Additional eligibility requirements for specific ~eet programs. as issued by GM Canada lo Dealers from time to time. will be made avaijable to Qualified Fleet Customers by lhe selling Dealer.
The Quafified Fleet Customer agrees to provide, upon request from GM Canada or selling Oealet, business records and registration information confirming lhat vehicles were purchased and registered solely for use in its Canadian operation and l.l'ansferred only in accordance with GM Canada ptogram requirements. In the event that the Fleet Customer orders new motor vehicles from a Dealer and idenUfies them as fleet units eligibJe for GM CanaPa fleet programs, and the vehicles are nol used by the Fleet Customer in accordance with program requirements, as determined by the Fleel Customer's b(lsiness record$ or regi~tration information. GM ca_riada will take appropriate action. This may include, bu! is nal limited to, the Fleet Customer or Dealer being
disqualified from future partK:ipation in fleet ptograms and the Fleot Customer or Che Deafer being charged by GM Canada for the amount of any special allowances, Incentives, special option package:s ot other promotional programs which GM Canada paid or credited lo the Deale( or the Fleet Customer as a result of the Fleet Customer's inaccurate representations.
GM Canad~ rese<ves the right ~Ung at its sole discretion, ro amend or fevol<e this program in whole or In pail. and to an1end or revoke any or au of the priv~eges or righl:s of Fleet Customer indicated befow.
______ YEAR SIGNED THIS DAY Of FLf:ET CUST6WIER COMPANY NAME IJJl11•s• typa or pdnt) ADDRESS CITY PROV POSTAL CODE ~----PHONE NO. FAX NO. E-MAIL ADDRESS SIGNATURE & TITLE OF OFFICER OF COMPANY lANGUAGE PREFERENCE: EN GUSH FRENCH ftfET CUSTOMER CONT ACT NAME lDfe1u: Rnatil FLEET CUSTOMER CONTACT TITLE (D/tast priqtl FLEET CUSTOMER BUSINESS· TYPE: I) C\)mmercl.al II) Government Iii} Oaily l{ent.11 Company Iv} le<1$(11g-Comp;my- v)Taici!Llmo (plea~• clrc:lr Ont r;mly} I) Utlllly vi} GM franchi'ied Oeaterthlp/Oealer Owned' Leasing Co. TOTAL rLEET StzE: Tolal Paste11ger Total Light Oufy Tr u(;k Total Medium Duly Truck NurttbtrufGM Number of OM Number of GM BUY _____ FROM ________________ ACQUlSJIION SOURCE: LEASE. ____ SUBMITTED BY {GM OEALERSHIP): ________~ -------------- DEAl.ERCOOE SIGNATURE OF GM CANADA DEALERSHIP FLlET MGR. ___ --------- SENO OR FAX TO: GM fleet Command Centrl PLEASE PRINT NAME: ______________________ PO Box 130, Stallon A 01ha.,., ON l1H 7L 1 SIGNATUR( OF DEALER OPERATORJGENERAI. MANAGER: ___________ FAX 1-800·269-9111 z0·d Wd vv:z0 Z0-6Z-A~W
This Is Exhibit. .......... ~ ............... referred to in the affidavit ot.S.{~~.h~jh ..- 4?::\4..~D. . sworn before me, this ................... ..\.\.=: ............ . day ot. ............. ~.ci.\.. ......................... 209.S. .. .
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·]. r f r; · : · 1 · · ' D ~ , t . e: 11/26/20 Su~jed: US EXPORTS IN . t· ;. . To: ALL G~~~~~ MOTORS OF C ADA.DEALERS ' ' :t ·: .. I r 03-176.doc , Ii i I i Home Office Letter ("HOL") 200S-028 dl!jted February 6j hoo3 provided you with General Motors of Canada Limited. 's ("G(ii!Clj") pclicy with respe to Vehicle Exports and Sale for Resale. While the contents of th¢ libL focused on exp . from Canada to the United States, reference was made to the nee<j to protect the viability d integrity of General Motors' worldwide distribution and dealer Otfjaniil:ations. Recent , GMCL has been made aware that certain New Motor Vehicles orig)nall'j intended for distri ~tion, sale, registration, and primary use in the United States have bl)en ~piiirted into Cana . For purposes of this HOL, New Motor Vehicles are defined as h~vin~ been in service, i he United States, for less than six months and having less than 7.110fffriiles (12,000 kilom ers) on the odometer. Vehicles built
by General Motors for sale in other q:ourltries, such as t United States, are certified to comply with applicable safety, l~eli~g and emissidns r. lliremen\s in those. countries and the importing of such vehicles info qsn~da in. ay result in th ,. ntravention of various laws. As a reminder, it is contrary to the tertn~, ~f thi:i Dealer Sales ' p Service Agreement ("DSSA"), specifically Article 13.1 (h), (i) a~d (1)1), for a Dealer not. eomply with applicable laws and regulations. As a result, GMCL ildsifuing the following p icy, consistent with our concerns stated both above and below: : i • 1 : ' ; I Dealers located in Canada are ~ot P,erm)tted to sell Ne tvlotor Vehicles that were not originally manufactured for distribution, s~le, fliisi$ration, and pri i'fY use in Canada. Furthermore, Dealers w. ho participate. in the p<i. rc~:!i.seior sale of ~uch ~hicles will hav-: their ne~ vehicle allocat1on reduced and the oppdrtun tib receive high d · and models will be restncted or discontinued. Any payments ma~e y GMCL to the Dea r with respect to the sale and/or service of these vehicles will be ~afged back to the~ er. GMCL will not pay for warranty repairs on these New Motor Ve/iicleS. Qceptions apply United States owners touring in Canada, individuals legitimately [relof:atirng to Canada, a ~·work required by a General Motors'
Product Recall notice. : f • : i ' . ' For vehicles originally sold in th~ U.~. th~t were in seNi in the United States for more than six months and where the milea!!le e1<ce<11ds 7,500 miles • 2,000 kilometers), Dealers are reminded to refer to GMCL's PoUcie~ and Procedures M ,nual, Article 1.1.1. This article states in part that Warranty "coveragesjdo [lot ~pply if the odo l;lter has been disconnected, its reading altered or the mileage/Kilom~traile cannot be de ermined'. Warranty and owner assistance manuals in both Canada iand; the United Sta I; ' ~ contain the same language. , · 1 · ! '
·I 2004-o~Number1 ~i;Q)l-176 i 'age l'l:>Ql/2 . ·' I i lf the odometer needs to be repaired, replaced or conve : d from miles lo kilometers (or vice versa), it is critical that such wo'.k tJ1 pe(formed proper!· : d only when necessary. Therefore, unless otherwise specifically aufhp_nz_ed!Jn writing by G_ GMCL, the customer must go to an authorized GMIGMCL Dealer/R~tai~r ~ho in tum will ar }lge to have such odometer replacement, repairs or conversion perf$rmed by a GM thorized Electronic Service Center in the United States or Electronic l)'lstri)m~fit Cluster Servi' ., Centre in Canada. As a reminder, a list of these locations was provid~ t4 yoa in HOL 2003-0 ~ If the odometer has not been repaired, replaced or convertedjacoprding to GM/GM Cl · approved process the vehicle warranty will be denied on an o1gojrg 1¥.tsis. . _ ·:' f : __ . When odometers are repaired, leiii4~cjior converted u'i g the approved process the vehicle's history file will be updated with ~claim oode. It will be. t ·. responsibility of Dealers/Retailers to check each vehicle's history using <fMV:JS to determin_e, e original country of sale, the in-service date and if the odometei- co11wersion was aulho( ed. If the vehicle in not eligible for warranty, the Dealer/Retailer mqist ~dV1$e the customer dcordingly. GM/GMCL reserves the right to debit Dealers/Retailers fur arr ~arranty claims s l)mitted on ineligible vehicles. It is important to note that nelth~,'~11eral Motors Corpd · . Ion nor GMCL are responsible to determine whether an odomete~_: co~ver$ion is required • '__ any applicable law in Canada or the United States, nor will General fylot rs Qorporatlon or G, CL confirm that conversions of
odometers be accepted by the resp_. «tl~e government a horities.
' ' Similar to GMCL's HOL 2003-028, ~n$ral Motors Deal_ rS In the United States are prohibited from selling New Motor Vehicles· for*se\outside of the U · ~ed States pursuant to their DSSA. Inducement to breach the contract tween General Mo is and its Dealers in the United States may expose Dealers andl~~ r lidividuals to lia91 t}r and other potential legal claims. GMCL is working wfth General l\l1ot~s Qorporation to id · tify and track such vehicles so they can take appropriate action with)the DE¥tlers. If you be i;ne aware of any possible violation of these policies, please provide the s :ecifjc information ID' ~ur Zone Office. . ·l. . ' .;' <i t i l M.J. Comeau , .. Vice President -Sales, Service ~ M+tke~ng :J f ''·"