CATEGORY:    WARRANTY

ATTENTION:   ALL DMC DEALERS/SERVICE MANAGERS

SUBJECT:     PROCEDURES



With Service Bulletin Number SO-03-6/81, DMC Dealers were informed
of the status of the "Service Procedures" and Suggested Warranty
Repair "Times" Manuals.

Until these manuals are available, please proceed according to the
attached instructions for:

            A.  Transportation Damage

            B.  P.D.I. and Free Maintenance

            C.  Warranty

            D.  Technical Reporting

These procedures are in effect until superseded.





Sincerely,



Lutz Feuerabendt
Technical Service Manager

ATTACHMENTS












                                                           ISSUED 6/19/81
                                                                        Page 1
                                                                     Bulletin SW-01-6/81

                  T R A N S P O R T A T I O N  D A M A G E
                       C L A I M  P R O C E D U R E S     





                     TRANSPORTATION DAMAGE CLAIM SERVICE

Transportation damage is damage that occurred during the transportation
of DMC vehicles up to the point of receipt/custody by the DMC dealership.

DMC provides transportation damage claim service for DMC dealers as follows:

A)  Receives claims from dealer.
B)  Reviews and validates claims based on the information received.
C)  Prepays dealer for DMC validated claim.
D)  Files claims with the respective carriers, and recovers cost for
    validated prepaid claims.
E)  Reverses payment for partial or full amount for prepaid claims for
    which DMC is unable to collect from the carriers.

                   VEHICLE INSPECTION AND DAMAGE RECORDING

In order to allow the processing of transportation damage claims, DMC
dealers must follow the procedures below:

Receiving Inspection:

1)  Verify the vehicle identification numbers (V.I.N.) of documents and
    vehicles.
2)  Carefully inspect vehicle(s) for damage or missing items.
3)  Record damages or missing items with a full description on the freight
    bill.  Note the location, type of damage, and size.  Examples: "Dent
    right front fender 6" x 2" x 1".  "Hood - scratch, 3" long, ¼" deep".
    "Spare tire missing - replace".  "Right front fender crushed - replace".
    If the space available on the freight bill is insufficient, enter: "See
    attachment", and list the damages on the attachment.  Always reference
    the damage to the applicable V.I.N. number on the freight bill as well
    as on any attachment.
4)  Obtain the signature of the carrier's driver as an acknowledgement of
    the damages recorded.

Other:

1)  Damage which will exceed $300.00 in repairs  (excluding glass and tires).

2)  Severe damage - such as deformed body, frame, and suspension, contact
    your DMC District Manager.
3)  Stains - In the event of any fluid stains on exterior panels, you must
    record on the freight bill the make and V.I.N. of the vehicle on the
    upper deck that caused the stain.  Note - stain removal is normally
    part of "make ready".  If stains cannot be removed, contact your DMC
    District Manager.
4)  Salt water damage - Contact the DMC distribution department immediately.

                                                                  Page 2
                                                             Bulletin SW-01-6/81







CARRIER NOTIFICATION

The carrier must be notified by the receiving dealer by certified mail in
the instances listed below.


A.  Subject To Inspection - When a vehicle is delivered after normal
    business hours or in a snow or ice covered condition, not rain or
    dirt, you may mark the freight bill "Subject to Inspection".  Each
    vehicle must be inspected no later than the next working day after
    receipt.  Your "Carrier Notification" must be sent to the carrier,
    by Certified Mail, no later than the second working day after receipt.
    A copy of your "Carrier Notification" must accompany your claim to
    DMC.

B.  Hidden Damage - Each vehicle must be inspected for hidden damage no
    later than the next working day after receipt.  Your "Carrier Noti-
    fication" must be sent to the carrier, by Certified Mail, not later
    than the second working day after receipt.  A copy of your "Carrier
    Notification" must accompany your claim to DMC.  Hidden damage can
    only include damage to undercarriages, tire treads, or insides of
    wheel wells.  No other damage can qualify.

C.  Salvage Parts - When you need to replace any body or mechanical parts
    with a total DMC reimbursement cost of over $50.00 per vehicle, a
    "Carrier Notification" must be sent to the carrier no later than 15
    days after vehicle receipt, advising them of the disposition of the
    replaced parts.  Dealers must hold such parts for 30 days from the
    date of the notification.  A copy of your "Carrier Notification"
    must accompany your claim to DMC.

DEALER TRADES - It is the responsibility of the dealer originally re-
ceiving the vehicle to make all transportation damage repairs and file
claims as required.

NONREIMBURSABLE ITEMS - The following cannot be reimbursed under trans-
portation damage:

A.  Complimentary items such as:  books, manuals, key cases, touch-up
    paint, etc.
B.  Minor scratches or chips - cleaning, polishing.
C.  Warrantable items, such as outward dents, misalignment of parts,
    stress cracks (glass), rough or wavy sheet metal, noninstalled
    equipment, etc.  If it is necessary to repair such items, contact
    your District Manager.

D.  Subsequent damage due to delayed repairs or improper storage of
    damaged vehicles.

                                                                   Page 3
                                                             Bulletin SW-01-6/81









                  DAMAGE REPAIRS REQUIRING AUTHORIZATION

Before a damaged vehicle is repaired, you must contact the District Manager
if the following conditions exist:

1)  The cost to repair the vehicle will exceed $300.00 (excluding glass and
    tires).
2)  The frame or safety related components of the vehicle appear to be
    damaged such as, damaged suspension and/or frame of the vehicle, any
    part of the floor/undercarriage is ripped or torn, or any welded panels
    require replacement.
3)  Special or unusual damage is discovered.

The District Manager will provide specific instructions, as applicable.







                              DAMAGE REPAIRS

DMC Dealers are required to assure that DMC vehicles are in new condition.
All Transportation Damages and/or missing items must be repaired or re-
placed as applicable, including damages occurring during storage or
handling after delivery to the dealership, and prior to retail delivery.
Repairs are to be made to restore the vehicle to perfect condition in
accordance with the repair procedures established in the DMC Service and
Repair Manual, using new DMC components only.



                    DISCLOSURE OF DAMAGE TO CONSUMERS

Several states have laws requiring disclosure to consumers of damage
repairs or unrepaired damage, usually beyond a minimum value threshold.
Consult your local laws as applicable.












                                                                      Page 4
                                                                 Bulletin SW-01-6/81

TRANSPORTATION DAMAGE CLAIMS - PROCEDURES

GENERAL:  -Up to 3 damages may be entered on one form.
          -If more than 3 damages, use an extra form and attach to the first form.
          -Do not enter any other transaction type category with transportation
           damage claims.

ATTACHMENTS REQUIRED:    A)  Repair order
                         B)  Sublet of bill (if applicable)
                         C)  Copy of Freight Bill
                         D)  Other pertinent documents pertaining to the claim.

REPLACED PARTS:  Identify with DMC parts tag and store until disposition by the
                 carrier or DMC.

CLAIM COMPLETION:  Entries are required on the shaded lines.  Enter line B-11 only
                   if applicable.

LABOR OPERATIONS AND TIME (REGULAR):

           Operation # AT 000 Time:  The actual clocked time in time units.
                                     (100 units = 1 hour)

LABOR OPERATION AND TIME (SUBLET):

           Operation # SL 000 Time:  As shown on the sublet bill.

CLAIM SUBMISSION: Retain pink copy, mail via regular mail to: De Lorean Motor
                  Company, 2055 S. E. Main St., Irvine, CA 92714
                  Attention: Technical Service

























                                                                      Page 5
                                                                 Bulletin SW-01-6/81


                           CARRIER NOTIFICATION LETTER

                                (EXAMPLE ONLY)

ORIGINAL LETTER TO:  CARRIER, VIA CERTIFIED MAIL

COPY OF LETTER (SUBMIT WITH CLAIM PACKAGE)





                                     Dealer's Letterhead
                                      or Name & Address 

TO:  CARRIER (Name)________________________  Date of this Notification________________

     Address_______________________________  Delivery Date____________________________

     Freight Bill #________________________  VIN#_____________________________________

     [ ]  "SUBJECT TO INSPECTION" DAMAGE NOTICE

          ( )  Delivered After Hours

          ( )  Delivered Covered by Ice/Snow, rendering normal inspection impossible

          ( )  Concealed Damage

          Damages/shortages to the subject vehicle were noted as follows:

          _______________________________________________________________

          _______________________________________________________________

          _______________________________________________________________


     [ ]  SALVAGE PARTS NOTICE

          Carrier:  Please be advised that the salvage parts listed below will be

                    held by us for 30 days, from the date of this notification, for

                    your inspection/disposition:

          Salvage Description:

          _______________________________________________________________

          _______________________________________________________________

          _______________________________________________________________



          DEALER CODE #________________  AUTHORIZED SIGNATURE_______________________






                                                                Page 6
                                                            Bulletin SW-01-6/81

                          CLAIMS PROCEDURES FOR:

-PREDELIVERY INSPECTION (P.D.I.)
-FREE MAINTENANCE (Labor only for 1st maintenance at 600-1200 miles)

                   LABOR OPERATION #/TIME ALLOWANCE

P.D.I.:             Operation #  01001   Time  150 units = (1hr.30min.)
Free Maintenance:   Operation #  01002   Time  150 units = (1hr.30min.)

                     TRANSACTION CODES (line B-1)

P.D.I.           - 32
Free Maintenance - 33

                           CLAIM COMPLETION

An entry is required in the shaded lines.
Retain pink copy and mail via regular mail to:

                            De Lorean Motor Company
                            2055 S. E. Main Street
                            Irvine, CA 92714
                            Attn:  Technical Service




























                                                                 Page 7
                                                             Bulletin SW-01-6/81


                      TECHNICAL REPORT PROCEDURES


This form is used to report technical matters as they apply to the
vehicle itself, spare parts, repair procedures, labor operations.

DMC dealers should participate in reporting such items thereby
providing DMC and the factory with a broad basis of information
for product quality, durability and function analysis and future
product development.

It is essential that the reports contain only factual information
and that they are submitted immediately.


                              COMPLETION

An entry is required in the shaded lines.

NOTE:  If a Warranty Claim was prepared for the item to be reported,
       a Technical Report should not be prepared.

Retain pink copy and mail via regular mail to:

                            De Lorean Motor Company
                            2055 S. E. Main Street
                            Irvine, CA 92714
                            Attn:  Technical Service




















                                                                  Page 8
                                                               Bulletin SW-01-6/81
                 W A R R A N T Y  P R O C E D U R E S


General:  DMC Dealers are authorized and required to make warranty decisions,
repairs, and replacements on behalf of DMC, with the exception of those
items that require prior inspection or authorization by DMC.  (See warranty
repairs requiring authorization.)  DMC Dealers are also required to render
warranty service for DMC vehicles not sold by them, and transient owners
should receive preferential treatment.

Decision Making:  The warranty statements as they apply to the vehicle, its
components or systems are the basis for making a decision whether a repair
or replacement is warrantable.
  A repair or replacement is warrantable, and you may proceed with a repair
  or replacement if you can answer all of the following with a "yes":
    1)  A malfunction exists.
    2)  The malfunction is caused by a defect in material or workmanship at
        the factory.
    3)  The item is not specifically excluded from coverage in any of the
        applicable warranties.
    4)  The item does not require prior inspection and/or authorization.
        (See warranty repairs requiring authorization.)
    5)  The mileage limit of any of the applicable warranties is not ex-
        ceeded.
    6)  The time limit of any of the applicable warranties is not exceeded.


Note:  Before denying any DMC owner's request for warranty service, you
       must consider any state or local laws or regulations which may over-
       ride the limitations of any of the warranties.

The following is an overview of the warranties that apply to DMC vehicles:

Warranties:  (For overview only refer to the actual warranties for full
              details.)

Vehicle                                           12 months/12,000 miles

*Emission Component Defects, Federal              5 years/50,000 miles

*Emission Component Defects, California           5 years/50,000 miles

*Emission Performance, Federal                    5 years/50,000 miles

*Emission Performance, Federal                    24 months/24,000 miles

Tires                                             Refer to Tire Warranties
                                                  Statement

Sound System                                      Refer to Sound System
                                                  Warranties Statement

Batteries (original equipment)                    See Battery Warranty
                                                  Information (in the DMC
                                                  Folder)




 *Refer to the emission parts list in the DMC Emission Warranty Statement
                                                                  Page 9
                                                              Bulletin SW-01-6/81










The following warrantable repairs require prior authorization.  For some
items prior inspection will also be required as follows:

                                                  PRIOR           PRIOR
                                                INSPECTION    AUTHORIZATION
                                                 REQUIRED       REQUIRED   

GENERAL:      Any warrantable repair or replace-
              ment that requires:

              Parts = Any single part with a
              Dealer net price of more than $500.00                 X

              Labor = Labor time of 20 hours or
              more                                                  X

              Combined = The total claim value
              exceeds $1500.00                                      X


MAJOR UNITS:  Engine complete                                       X
              Short block                                           X
              Transaxle complete                                    X
              Chassis/frame                         X*              X


BODY:         Any sheet metal work                  X               X
              Door replacement                      X*              X
              Any paint repair                      X               X
              Glass replacement                     X*              X
              Trim & Carpets                        X*              X
              Upholstery                            X*              X


*If replaced and defect can still be verified after the replacement, the
 prior inspection requirement may be waived.










                                                                   Page 10
                                                               Bulletin SW-01-6/81















Procedures:  To obtain an authorization, contact your DMC District Manager
who will give you an authorization number.  This number must be entered on
line B-11 of the claim form.

If prior inspection is required, arrange to have the vehicle inspected
during the next visit of your DMC District Manager.

In an emergency situation where the vehicle is inoperable and prior
inspection is required, contact your DMC District Manager or the DMC
area office.

All authorizations are issued based on information supplied by the request-
ing dealer.  If, at a later date, such information proves to be erroneous,
the applicable authorization may be retracted, resulting in a reversal of
the claim's status and disposition.

DMC District Managers will not issue authorizations for any repair which
is not warrantable.

NOTE:  DMC District Managers can issue authorizations, if justified, only
       for items that require authorization, and therefore can not issue
       any authorizations for any other items, such as repairs or
       replacements not covered by warranty or beyond the warranty limits,
       disallowed claims, etc.  Such authorizations can only be obtained
       through the DMC Service Department.  For such authorizations,
       contact your District Manager for instructions or assistance.













                                                                Page 11
                                                            Bulletin SW-01-6/81







                       R E I M B U R S E M E N T S



                               L  A  B  O  R



De Lorean Motor Company (DMC) reimburses authorized DMC dealers for labor
reimbursable by DMC as follows:


ESTABLISHED LABOR OPERATIONS AND TIME ALLOWANCE
The time allowance multiplied by the "DMC Labor Reimbursement Rate."

NOT ESTABLISHED LABOR OPERATIONS OR TIME ALLOWANCE
The reasonable actual time used (punched time) multiplied by the "DMC
Labor Reimbursement Rate."

SUBLET/OTHER LABOR - SEE OTHER REIMBURSEMENTS






























                                                                 Page 12
                                                             Bulletin SW-01-6/81






                       R E I M B U R S E M E N T S



                               P  A  R  T  S

DeLorean Motor Company (DMC) reimburses authorized DMC dealers for parts
reimbursable  by DMC as follows:


GENUINE AND DMC SUPPLIED PARTS
The amount shown under "DMC Reimbursement" in the DMC parts price list.
This amount is calculated as follows:
Dealer Net x 25%   allowance for dealer handling
Dealer Net x  2%   allowance for small parts whether used or not
Dealer Net x 27%   Reimbursement

SMALL PARTS
Small parts of less than $1.00 list price are excluded from reimbursement
on an individual basis and are covered by the 2% small parts allowance.
Such parts should therefore not be listed on claims; they also do not
show a DMC reimbursement amount in the DMC parts price list.

EXCLUSIONS
The aforementioned reimbursement calculations do not apply for some
selected items such as major units or high cost items that require
authorizations.
Handling and small parts allowance for such items will be calculated on
an individual basis, and a DMC reimbursement amount is also not shown in
the DMC price list.

In no event will any DMC reimbursement for genuine DMC components exceed
the DMC suggested list price.

OTHER/SUBLET PARTS
See other reimbursements.

REIMBURSEMENT CALCULATIONS/EFFECTIVE DATE (PARTS):
Reimbursement amounts are calculated at the reimbursement prices in effect
at the time of processing at the DMC Service Processing Center.










                                                                Page 13
                       R E I M B U R S E M E N T S          Bulletin SW-01-6/81
OTHER REIMBURSEMENTS
De Lorean Motor Company (DMC) reimburses DMC Dealers as follows for:

SUBLET LABOR
The actual reasonable amount paid by the DMC Dealer to the sublet shop,
without any dealer mark-up.

BODY SHOP LABOR (DEALER OWNED BODY SHOP)
Sheet metal & trim work - body shop repair order is treated like a
sublet repair order.
Mechanical work - same as mechanical labor.

FLAT LABOR/FLAT PARTS - DOLLARS
The dollar amount allowed, authorized or agreed upon.

EXCISE TAXES
The amount of the actual tax incurred or applicable portion thereof.

FREIGHT (WARRANTY PARTS SUBMISSION)
The actual freight cost incurred.

SUBLET PARTS
The actual reasonable amount paid by the DMC Dealer to the sublet shop
without any dealer mark-up.  Any genuine DMC parts used during a sublet
repair are reimbursed at the rate applicable to genuine DMC components.

OTHER NON-GENUINE PARTS/MATERIALS/FLUIDS/LUBRICANTS
Other parts and materials used during warranty repairs at the DMC Dealer
are reimbursed at the actual dealer cost plus ten percent for handling.

Fluids and lubricants used during warranty repairs are reimbursed according
to the following schedule:


                             Part #    QTY  Reimbursement  This allows for:

FREON CHARGE               (W-106788)   1       $6.30      3.75 pounds = 1½
                                                           charge: ½ charge for
                                                           testing, 1 charge
                                                           for system fill to
                                                           complete the repair

ENGINE OIL                 (W-100559)   1     $10.25       7 quarts refill to
                                                           complete the repair

TRANSMISSION OIL           (W-100560)   1      $4.55       3.9 quarts refill to
                                                           complete the repair

AUTOMATIC TRANSMISSION
FLUID                      (W-100561)   1      $9.15       6 quarts refill to
                                                           complete the repair

AUTOMATIC TRANSMISSION
FINAL DRIVE                (W-100562)   1      $2.10       1.8 quarts refill
                                                           to complete the
                                                           repair

ANTIFREEZE                 (W-100565)   1      $7.55       1.45 gallons to
                                                           refill system to
                                                           maximum level
                                                                         Page 14
                                                                     Bulletin SW-01-6/81





                       LABOR REIMBURSEMENT RATE





DMC LABOR REIMBURSEMENT RATE
GENERAL:  The DMC Mechanical Labor Reimbursement Rate applies to all valid
transactions of DMC Dealers that are reimbursable by DMC.

OPTION A:  Retail Rate (Requires Posting and Stating of the Effective Retail
Rate).
The DMC Labor Reimbursement Rate is equal to the stated posted effective
mechanical retail rate of a DMC Dealership.

LIMITATIONS
If such rate exceeds the average effective rates applicable to other
franchised makes handled by the DMC Dealership and/or effective retail
rates of other new vehicle dealers in the DMC Dealer's immediate trade area,
the DMC Labor Reimbursement Rate will be limited to be no more than 10%
above such average rates, unless the DMC Dealer can show that the average
hourly mechanical pay rate for the DMC technicians is higher then 110% of
the average hourly mechanical pay rate for other makes in the DMC Dealer's
Service Department or immediate trade area.

OPTION B:  Calculated Rate (Procedure for Start Up).
If a DMC Dealer does not wish to state and post the effective retail rate,
the DMC reimbursement rate shall be equal to:  255% of the average basic
wage paid to the service technician(s) principally assigned to perform
maintenance and repair work on DMC vehicles.   In no event shall the
calculated rate exceed the effective retail rate.

BASIC WAGE MEANS
Hourly/Salaried - The basic hourly wage without any benefits or efficiency
allowance.
Split Pay System - The hourly amount applicable to service technicians' pay
without benefit or efficiency allowance.

PROCEDURE FOR ESTABLISHING DMC LABOR REIMBURSEMENT RATE
In order to establish a new or updated DMC Labor Reimbursement Rate, the
dealer must complete the "Application for Labor Reimbursement Rate."
Forms may be obtained by ordering DMC Part # F-200001 (Option A) or
F-200002 (Option B).
Upon completion, your dealer's signature must be notarized.  The forms must
be forwarded to the DMC Service Department, which will inform your dealer-
ship in writing of the newly established and approved DMC Labor Reimbursement
Rate and its effective date.





                                                                   Page 15
                                                               Bulletin SW-01-6/81

WARRANTY CLAIMS - PROCEDURES

GENERAL:  -Each individual repair requires a separate transaction entry.
          -Up to 3 individual repairs of one repair order may be entered on
           one form.
          -If more than 3 repairs, prepare additional form and attach to the
           first form.

ATTACHMENTS REQUIRED:  A)  Repair order
                       B)  Sublet bill (if applicable)

REPLACED PARTS:  Identify with DMC parts tag and submit together with the claim,
                 except - fuel tanks, glass, large items which must be stored
                 until disposition by DMC.

CLAIM COMPLETION:  Entries are required on the shaded lines.  Enter line B-11
                   only if applicable.

LABOR OPERATION AND TIME (REGULAR):

           Operation # AT 000 Time:  The actual clocked time in time units.
                                     (100 units = 1 hour)

LABOR OPERATION AND TIME (SUBLET):

           Operation # SL 000 Time:  As shown on the sublet bill.

CLAIM SUBMISSION:  Retain pink copy, mail or ship to:  De Lorean Motor Company,
                   2055 S. E. Main St., Irvine, CA 92714
                   Attention:  Technical Service