General Motors has announced it will implement what it is calling an “Electronic Minimum Resale Price” policy for certain genuine GM parts and ACDelco parts.
The new policy, which will take effect on January 1st, 2020, will ensure GM dealerships and other third-party retailers are selling genuine GM parts and ACDelco parts at a certain set amount, which will be enforced electronically.
“GM is deeply focused on brand protection and this policy is intended to safeguard the reputation of our GM Genuine Parts and ACDelco parts customers and sellers,” GM customer care and aftersales general manager, Mark Drennan, said in a prepared statement. “The policy is set to ensure confidence in our products and services.”
This policy is meant to prevent dealers and retailers from attempting to undercut one another when selling GM or ACDelco branded parts. This practice, GM says, could lead to collision repairers and mechanics having reduced revenue, as they would be unable to sell repair parts at a profit.
Speaking to the Motor and Equipment Manufacturer’s Association (MEMA), GM spokesperson Christine Kunde said the new price policy “will be applicable to everyone selling parts online,” and not just GM dealers.
“(GM Customer Care and Aftersales) provides automotive parts and accessories that have become known for high quality, performance and safety,” the automaker said in the press release. “The new policy allows GM to protect the overall brands, reputation, and image of GM, its dealers, and its business partners.”
The automaker also said only a “limited number of parts” would be affected by the new policy, though it has yet to provide a full list of said parts. More details on the EMRP policy will become available on November 1st and will be posted to a dedicated landing page on ACDelco’s website. GM Authority will provide more details on the EMRP policy at that time.
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Source: MEMA
Comments
MAP [Minimum Advertised Pricing] pricing is big and very common in the parts industry.
I suspect this is a slow roll out but it will spread.
The greatest issue is the GM parts web sites that some like to post up cheap prices then smack the customer with unrealistic shipping charges.
I bought a tune kit a couple years ago that was a tune code to down load from GM, two map sensors and two plugs in the box. The one web site had it listed near my cost but then the Shipping was $100 on a box that was 1/4 of a pound.
I deal with MAP pricing often and generally it is only on web pricing for most companies that are enforcing it. They are just trying to keep the higher volume places from killing off the smaller shops that are selling. It kind of puts everyone on equal ground till they start offering rebates or future earned discounts on additional products.
There are ways around it.
So in other words PRICE FIXING…..
Actually it is more to protect the market from 3-4 player dominating and then charging what they want.
If the competition is there they can sell cheap and once they are gone they can run up the price.
Amazon has practiced this.
GM does not want anyone supplier strong enough to put demands on them.
Walmart got strong enough to tell MFGs what they would pay. The suppliers had to give as Walmart was 70% of their business.
It is more a fight over power on who controls the market.
Isn’t this price fixing?
And isn’t price fixing against the law?
Once your warranty is up, there is no reason to use GM parts, or get work done by the dealer, not that you pay for it under warranty.
Even with warranty, there is no reason to use GM branded maintenance items, the last time my ’13 silverado had GM branded oil and filter was when I picked it up new.
This will prevent the dealer from being competitive with the non GM part suppliers and repair shops for non warranty work.