NEW 'DCS' WARRANTY CLAIM MEMORANDUM

MODELS AFFECTED: ALL

We are pleased to announce that a completely new Warranty Claim Credit Memorandum has been developed that will feature transmittal of Claim Data via the Dealer Communications System (DCS). The transmitted memo will reach DCS dealers the same week as the claims were processed, i.e. claims submitted through Tuesday of each week will be included in the claim memo data that will be available Thursday or Friday of that same week. This will allow much faster claim reconciliation, as well as correction and resubmittal of rejected claims. Non-DCS dealers will receive this new Claim Memorandum through the mail as in the past.

The new Claim Memorandum will include credits for Warranty, Campaign, and Transportation claims in one section instead of two separate sections as in the current Claim Memo. Debit activity will follow the credit section. All entries will appear in repair order number sequence and will contain the following data as per the attached sample:

o Dealer code number, Claim Memorandum number and date and page number. o R. O. Number. o R. O. Date. o Vehicle Identification (VIN) number. o Mileage (shown in whole hundreds of miles - 0032 = 3200) o Document number - For non-DCS dealers will be preprinted number on the paper document. For DCS dealers, the six character number will be automatically generated. The first three characters represent the Julian date when the claim was transmitted. The last three characters represent the sequence in which the claims were transmitted that day. o R. O. Total. o Line number. o Labor operation number. o Parts credit. o Labor credit. o Net Item credit. o Credit requested. o Error (credit issued vs. credit requested). o Deductible amount (where applicable). o Total net credit. o Claim type. o Authorization code. o Reject message and code number when applicable (reference R.O. and C.M. Number for duplication, comeback and mileage discrepancy denials will also be indicated).

At the end of each Claim Memorandum, a recap will be provided and include the following data:

o Dealers current warranty labor rate and effective date. o Total campaign and warranty claim credit. o Total Transportation claim credit. o Total of the above credits. o Total Warranty/Campaign claim debits. o Total Transportation claim debits. o Total of all debits. o Net credit (or debit) issued on the C.M. o Average age of Warranty/Campaign claims paid on C.M. (R.O. date vs. date received). o Total nuniber of all claims submitted on C.M., total paid and percent paid of those submitted. o Number of all rejected claims and percent rejected of those submitted. o Number of claims denied and percent of total. o Number of claims being reviewed at Buick and percent of total. o A listing of all reject codes for the C.M., including: - Reject code. - Error description. - Number rejected. - Reject (R) or denial (D) indicator. - Percent of total rejects.

This condensed, yet comprehensive claim memo provides ample detail for reconciliation with the added benefit of data transmission. DCS dealers should receive this memo three to six working days sooner than the present Claim Memo, which was dependent on mail service that varies greatly throughout the country. The single recap page will also allow for easier reconciliation against the monthly Open Account Statements.

This new credit memo started with credit cycle #631 for all DCS dealers, and will begin for non-DCS dealers approximately the first credit cycle of October, #639. The DCS data access is through the mailbox inquiry application with a file name of "BWARCREDIT". The Claim Memo should be printed at a time when the printer is not required for other functions in order to avoid conflicts. This is extremely important for larger volume dealers as printing time will be longer. A detailed section on the new memo, with examples, will be included in the New Warranty and Transportation Claim Preparation Manual, which is scheduled for publication in the near future.

BUICK WARRANTY, CAMPAIGN CREDIT DETAIL

DLR 411001 CM 626 DATE 07/16/86 PAGE 01

RO-NO RO DATE VEHICLE ID NUM MILES DOC-NO RO-TOTAL C LN LAB-OP PRT-CR LAB-CR NET-CR CR-REQ ERROR DEDUCT CR-PAID T AUTH

005796 06/26/86 1G4EZ57Y9FE419198 054 177001 48.00 01 E2020 48.00 48.00 48.00 001A

049247 06/26/86 1G4CW6937F1495601 061 176001 59.85 01 E2320 131.85 28.00 159.85 100.00 59.85 185A

049519 06/26/86 1G4CW6939F1409480 047 176002 14.30 01 N4120 2.30 12.00 18.30 -4.00 14.30 186A

050789 06/26/86 1G4AZ5746CE418615 094 178001 01***CLAIM REJECTED 30

052404 06/26/86 1G4EZ57B3GU403971 006 176003 390.36 01 AO89O 106.40 132.98 239.38 239.38 81OA 02 A2190 60.80 14.69 73.49 75.49 001A 03 A2191 60.80 14.69 75.49 75.49 001A

052935 06/26/86 1G4CW693XF1403971 052 178002 130.36 01 J0507 66.66 144.00 7.15 217.81 87.45 130.36 148Y

052991 06/26/86 1G4AC69R6EW469283 081 17002 109.56 01 J0528 58.41 144.00 7.15 209.56 100.00 109.56 421Z

053547 06/26/86 1G4CW6937F1491189 043 181001 109.56 01 J0507 58.41 144.00 7.15 209.56 100.00 109.56 421Z

053948 06/26/86 1G4AL19E9F6445421 061 177003 1842.18 01 J1800 1355.00 580.00 7.15 1942.18 100. 00 1842.18 001A

054342 06/26/86 1G4JS2700FK437604 056 178003 124.16 01 J3480 80.16 44.00 124.16 124.16

054990 06/26/86 1G4CW69B3Gl46l440 101 178004 Ol***CLAIM DENIED 17 R . 0. -058217 LN-01 CM-618

055077 06/26/86 1G4EZ57B9GU400492 098 177004 48.17 01 N2411 8.00 40.17 48.17 48.17

057205 06/26/86 1G4NM27L4GM104558 106 176007 Ol***CLAIM REUECTED 21

057328 06/26/86 1G4NJ27UOGM168632 084 177008 32.00 01 E0203 32.00 32.00 32.00 870A

056993 06/26/86 1G4HR6938GH464444 093 178008 8.65 01 J3340 .65 8.00 8.65 8.65

BUICK CREDIT AND DEBIT CLAIMS RECAP

DLR 411001 CM 626 DATE 07/16/86 PAGE 24

CURRENT WARRANTY LABOR RATE 01/15/86 BODY 35.00 MECH 35.00

TOTAL CAMPAIGN AND WARRANTY CREDIT 38138.60 TOTAL TRANSPORTATION CREDIT 0.00

TOTAL CREDITS PAID 38138.60

TOTAL WARRANTY DEBITS 0.00 TOTAL TRANSPORTATION DEBITS 0.00

TOTAL DEBITS 0.00

NET TOTAL PAID (CREDIT - DEBIT) 38138.60

AVERAGE AGE OF CLMS PAID THIS CM 21.70

CLMS SUBMITTED 504 PAID 447 PERCENT 88.6

CLAIMS REJECTED 35 PERCENT 6. 9 CLAIMS DENIED 22 PERCENT 4. 3 CLAIMS BEING REVIEWED 0 PERCENT 0. 0

ERROR

CODE DESCRIPTION CNT R-D PCT ----- ----------- --- --- --- 21 PART NUMBER MISSING/INCORRECT 9 .R 15.7

33 LABOR OPERATION INCOMPATIBLE TO VEHICLE 6 .R 10.5

30 PART AMOUNT EXCESSIVE 5 .R 8.7

39 REPAIR OVERLAP 4 .R 7.0

23 PART INCOMPATIBLE TO LABOR 3 .R 5.2

01 VIN ERROR 2 .R 3.5

35 LABOR OPERATION REGUIRES AUTHORIZATION 2 .R 1.7

31 LABOR OP NUMBER MISSING/INCORRECTZNOT ON FILE 1 .R 1.7

43 SUBLET, DMN, TOWING EXCESSIVE 1 .R 1.7

47 DUPLICATE OF PREVIOUSLY PAID CLAIM 15 .D 26.3

07 BEYOND WARRANTY-TIME/MILES 7 .D 12.2

08 BEYOND OPTIONAL EXTENDED WARRANTY - TIME/MILES 1 .D 1.7

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.