CORE RETURN PROGRAM

DATE: May 1996

SUBJECT: Core Return Program -------------------

This bulletin introduces a new Core Return Program and supersedes information in previous bulletins. Please discard Parts and Accessories Bulletins 92-PA-03 Core Return Procedure and 95-PA-07 Instrument Cluster Remanufacture Program. In addition, disregard all remanufacturing information contained in publications printed prior to May 6, 1996.

OVERVIEW: Effective May 6, 1996, Saturn Service Parts Operations will implement a new Core Return program. This new program is very similar to the Material Return program. It utilizes the Material Return function on the Saturn Retailer System and cores are sent directly to Saturn via Dedicated Delivery or current material return carrier for those not on Dedicated Delivery.

The new process for core returns will create a consistent return process for all cores, simplify the return of cores, and shorten the amount of time for core value reimbursement. The Saturn parts included in the May 6, 1996 program roll-out are as follows:

* Audio (i.e. radios, compact disc players and changers)

* Powertrain Control Modules (PCM) and Engine Control Modules (ECM)

* Instrument Clusters (1991 - 1994 only)

* Generators

Details regarding implementation of the Core Return program are covered in the following sections:

Part I: Program Highlights and Benefits Part II: Selling Remanufactured Parts Part III: Returning Cores to Saturn Part IV: Specific Part Information Part V: Attachments A. Core Return Receipt form B. Core Return Checklist

NOTE: All part numbers are subject to change. Please reference the Saturn Retailer System (SRS) for part number confirmation.

PART I:

PROGRAM HIGHLIGHTS AND BENEFITS

The new Core Return process has several benefits. Key highlights of the new process are listed below. Details for each core and associated remanufactured parts are provided in this bulletin, Part IV Specific Part Information.

* The process for returning cores has been simplified in the following ways:

- All cores are sent back to the Saturn Core Processing Center via Dedicated Delivery (or current material return carrier for those not on Dedicated Delivery), rather than being shipped to specific remanufacturing sites.

- There are new, simplified Core Return Tags for use with each core.

- The Customer Service Order form is no longer required with each core return.

- To insure the integrity of core returns (Dedicated Delivery only) a metal seal and Core Return Receipt form are required. The form should be signed by Parts Department personnel and the Route Manager.

- Cores will be processed on the Saturn Retailer System using the Core Material Return function and Material Return code 017 Core Return. This means:

- Saturn will automatically generate Core Material Returns weekly for all cores in inventory.

- The process for returning cores will be consistent with other Saturn returns..

- Reimbursement for returned cores will be faster.

- There is now a core value added to generators and 1991 - 1994 instrument clusters.

PART II SELLING REMANUFACTURED PARTS ----------------------------

WARRANTY/CUSTOMER PAY ---------------------

* All warranty and internal customer pay remanufactured parts should be sold to a Customer Service Order. When the Customer Service Order is closed, the core charge will be credited automatically to the Customer Service Order and the core will be added to inventory.

* For more detail on how to sell parts with cores to a service order, see the SRS Parts Quick Reference Guide.

OVER-THE-COUNTER

When selling a remanufactured part over-the-counter (for repair work outside the facility), use the following process:

1. Access the Part Inquiry screen and sell the remanufactured part as a typical over-the-counter sale. At the Customer Order Totals screen the core amount will be displayed automatically as a credit.

* If the customer does return a core at the time of purchase, print the invoice to complete the sales transaction. The core will be added to the physical inventory count in the same manner as a warranty repair. Place the core in the original Saturn remanufactured part box. The core must be returned in the original Saturn box to receive credit.

* If the customer does not return a core at the time of purchase, delete it from the screen. Enter a note in the memo field (and notify customer) that a refund will be given to the customer when the core is returned in the original Saturn remanufactured part box along with the original receipt. Print out the invoice to complete the sales transaction.

2. When the core is returned, access the Part Inquiry screen and perform the following steps:

* Enter employee number * Enter customer name * Type "R" (for return) in the "C" column * Enter quantity and part number * Press CMD-9 Invoice Entry * Press Enter at the Customer Order Totals screen * Press CMD-5 Print Invoice

3. The core will be automatically added to physical inventory when the invoice is printed. Give the printed invoice to the customer and direct him or her to the cashier for a refund.

PART III RETURNING CORES TO SATURN -------------------------

SATURN RETAILER SYSTEM

Following is system information for the new Core Return process. This process utilizes the Material Return system function. Core returns can be Saturn or retailer initiated. Saturn will initiate a Core Material Return one time each week. However, a Core Material Return may be initiated at any time in addition to Saturn's weekly Core Material Return.

SATURN INITIATED CORE MATERIAL RETURN

1. Saturn will initiate Core Material Returns once a week to each retailer for all cores in inventory.

2. Verify bin quantity using the Picking Ticket and note any discrepancies.

* If more cores are found than are listed on the Picking Ticket, send back only the cores that are listed. The remainder of the cores should be listed in the next week's core return notification.

* If less cores are found than are listed on the Picking Ticket, update the Customer Order Totals screen accordingly.

RETAILER INITIATED CORE MATERIAL RETURN

1. Review inventory and Core Report to determine on-hand core quantity.

2. Create a core return request to Saturn using the Core Material Return function with code 017 Core Return.

* It is not necessary to separate core parts being sent to Saturn by core part type. All core parts can be listed on the same Core Material Return request.

3. Submit the Core Material Return request to Saturn for authorization.

For more detail on the Material Return system function, please refer to the SRS Parts Quick Reference Guide.

CORE PROCESSING

NOTE: Parts sent to Saturn that are not eligible for return under this Core Return program will be scrapped. This is because the Saturn Core Processing Center does not have the capability to return parts to retailers. No credit will be issued for such returns. These parts include any non-Saturn parts, parts not in an original Saturn remanufactured part box, severely damaged parts (i.e. crash, fire, and flood), and non-approved parts. Handling fees also could be assessed in some cases.

In order to ensure prompt and. accurate credit for returned cores, use the following procedure:

1. Verify that the correct yellow Core Return Tag (i.e. Audio Core tag on a Radio, Generator Core tag on a generator, etc.) is filled out completely and attached to each core.

It is very important that the service technician fill out the tag properly and completely. Having the service technician do this will add to the success of this program in several ways:

* Information directly from the service technician helps guarantee accurate information on the tags. The Remanufacture Centers need the correct failure information from the technician to make all necessary repairs.

* Correct information will help ensure proper part remanufacturing, which means better quality remanufactured parts for Saturn customers.

NOTE: If the core was returned by an over-the-counter customer, enter the invoice number in the CSO# line on the yellow Core Return Tag. Ask the customer to fill out the other information on the tag. The return of a core with no yellow tag or a tag that is not filled out properly could result in loss of credit for the core. The yellow core tag must be filled out regardless if it is a warranty, customer pay, or over-the-counter core return. The yellow Core Return Tags are located in the box with each remanufactured part. Additional tags for each core type, except Cluster/Speedo cores, may be obtained through Saturn Publications at 1-800-828-2112, prompt 3. Refer to the item number at the bottom of the tag when ordering.

2. Ship cores using the following guidelines for Dedicated Delivery Service and non-Dedicated Delivery Service:

Dedicated Delivery Service

* Package each core in the original Saturn remanufactured part box. Put only one core in each box.

* Place cores in a separate tote or cage from all other part returns. These cores will not be shipped to the SSPO warehouse but to a different location in Spring Hill, therefore do not mix material return parts or failed parts in a cage or tote with core returns.

* Seal the core cage or tote with a metal seal like the one shown below. Do not put these seals on other cages or totes. These numbered, metal seals are provided to insure the integrity of core return shipments. Additional metal seals may be obtained through Saturn Publications at 1-800-828-2112, prompt 3. Refer to item number S196013G when ordering.

* Fill out the Core Return Receipt form. (A properly filled-out sample of the Core Return Receipt form can be found in Attachment A.) To ensure that the shipment will be picked up and proper credit will be received, the shaded areas of this form must be filled out completely.

* Additional forms may be obtained through Saturn Publications at 1-800-828- 2112, prompt 3. Refer to the item number at the bottom of the form when ordering.

* Place the Packing Slip(s) and Core Return Receipt form in an appropriate area for the route manager to locate. The route manager will verify the information on the form, sign it, and leave the pink copy. Please retain this copy; it is the proof of shipment.

* Place core cage or tote in the return area to be picked up with the next dedicated delivery.

NOTE: The Route Manager will not pick up cores if the cage or tote is not properly sealed with the metal seal, if the Core Return Receipt form is not properly filled out, or if failed parts and/or other material return parts are placed in the cage or tote along with cores.

Non-Dedicated Delivery Service

* Package the cores in the original Saturn remanufactured part box. Put only one core in each box.

* Place multiple core packages in one tote or box for shipping (not to exceed 60 lbs.).

* Fold the Packing Slip so that the mailing address will show through a clear packing list envelope. Adhere the envelope to the outside of the shipping container. If a packing list envelope is not available, place the Packing Slip inside the shipping container.

* Ship the cores to this address:

SSPO C/0 Ryder - Core Retum 3639 Royal Park Blvd. Spring Hill TN 37174 ATTN: Load Exchange

NOTE: Ship the cores via RPS (utilizing the preprinted Collect Bar Code Labels) or Federal Express if RPS does not service the facility.

3. Incorrect or missing information will delay credit for cores. Credit for core returns will be issued when the following required information is received.

* Core in original Saturn remanufactured part box * Properly filled out yellow Core Return Tag * Properly filled out Core Return Receipt form (Dedicated Delivery only) * Sealed cage(s) or tote(s) (Dedicated Delivery only)

PART IV SPECIFIC PART INFORMATION --------------------------

The details for each core part currently included in the Core Return program are outlined on the following pages. A diagram of each yellow Core Return Tag is shown in each section.

Audio Cores

The new Core Return process for Audio cores has several notable differences. They are as follows:

* Saturn will automatically generate Core Material Returns once a week (using code 017 Core Return) for all audio cores rather than selling them back to Saturn as a charge type sale.

* Use the new yellow Core Return Tag titled AUDIO CORE (shown below) instead of the orange failed part return tag. Have the service technician fill out the yellow core tag completely.

* It is no longer necessary to include a hard copy of the Customer Service Order with each core shipment.

* Core must be returned in the original Saturn remanufactured part box to receive credit.

* Ship audio cores to Saturn via Dedicated Delivery, (or current material returns carrier for those not on Dedicated Delivery) rather than sending them to United Radio.

In addition to the differences listed above, please note the following:

* Do not send customer repair audio parts with core returns; they must be sent directly to the repair centers.

* Do not include base take-out radios with core returns. Continue to use the standard Material Return process for base radio returns using Material Return code 011 Radio Return rather than 017 Core Return.

PCM/ECM CORES -------------

The new Core Return process for PCM and ECM cores has several notable differences. They are as follows:

* Saturn will automatically generate Core Material Returns once a week (using code 017 Core Return) for all PCM and ECM core s rather than selling them back to Saturn as a charge type sale.

* Use the new yellow Core Return Tag titled PCM/ECM CORE (shown below) instead of the orange failed part tag. Have the service technician fill out the yellow core tag completely.

* It is no longer necessary to include a hard copy of the Customer Service Order with each core shipment.

* Core must be returned in the original Saturn remanufactured part box to receive credit.

* Ship PCM and ECM cores to Saturn via Dedicated Delivery, (or current material return carrier for those not on Dedicated Delivery) rather than sending them to Dayton Speedometer.

INSTRUMENT CLUSTER CORES (1991-1994 ONLY)

The new Core Return process for Instrument Cluster cores has several notable differences. They are as follows:

* 1991 - 1994 Instrument Clusters now have a core value. All other Instrument Clusters are serviced by components and do not have a core value and are not part of the Core Return program.

* When the Customer Service Order is closed the core charge now will be credited automatically to the Customer Service Order and the core will be added to inventory.

* Saturn will automatically generate Core Material Return using code 017 Core Return) for all instrument cluster cores.

* Use the new yellow Core Retum Tag titled CLUSTER/SPEEDO CORE (shown below) instead of the orange failed part return tag. Have the service technician fill out the yellow tag completely.

* It is no longer necessary to include a copy of the VDO-Yazaki Saturn Cluster Return Instructions sheet with each core return.

* Core must be returned in the original Saturn remanufactured part box to receive credit.

* Ship Instrument Cluster cores (1991 - 1994 only) to Saturn via Dedicated Delivery (or current material returns carrier for those not on Dedicated Delivery) rather than sending them to VDO-Yazaki.

GENERATOR CORES

The OEM generator (P/N 21022772) is superseded by two remanufactured generators with the following part usage:

* P/N 21023724 generators must be used in 1991 - 1994 model year Saturns

* P/N 21023515 generators must be used in 1995 and newer model year Saturns

The new Core Return process for Generator cores has several notable differences.

They are as follows:

* Generators now have a core value. There will be one core part number (21023516) and one core value assigned to both generator cores.

* When the Customer Service Order is closed the core charge will be credited automatically to the Customer Service Order and the core will be added to inventory.

* Saturn will automatically generate Core Material Returns once a week (using code 017 Core Return) for all generator cores.

* Use the new yellow Core Return Tag titled GENERATOR CORE (shown below) instead of the previous yellow tag that was used for the voluntary generator return program.

* Core must be returned in the original Saturn remanufactured part box to receive credit.

* Continue to ship Generator cores to Saturn via Dedicated Delivery, (or current material return carrier for those not on DDS) but place them in the core cage or tote with other core returns.

PART V ATTACHMENTS -----------

ATTACHMENT A: CORE RETURN RECEIPT FORM --------------------------------------

This form is to be used when sending cores back to Saturn if serviced by Dedicated Delivery. The form must be filled out properly, as shown in the attachment, to ensure that the shipment is picked up and proper credit is received.

Additional forms may be obtained through Saturn Publications at 1-800-828-2112, prompt 3. Refer to the item number at the bottom of the form when ordering.

ATTACHMENT B: CORE RETURN CHECKLIST -----------------------------------

This checklist will be a useful tool during the implementation phase of the core return program and as a training aid for future employees. Please make copies of this checklist and use it as a guide for learning the new core return process.

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.