The following is incredibly helpful information, posted here by 
permission of its author, Phil Edmondston. We appreciate his authorizing
us to share this with you.

The following is the CompuServe help sheet I posted about a year ago,
and Text from my latest 1997 Lemon-Aid book.

Secret warranties: Paint 

Businesses and politicians hear better through their rears than
their ears. - Saul Alinsky, grass-roots advocate

Regulatory Agencies: In youth they are vigorous, aggressive,evangelistic
and even intolerant. Later, they become mellow; and in old age-after some
10 or 15 years- they become, with some exceptions, either an arm of the
industry they are regulating or senile. - John Kenneth Galbraith, The Great Crash

Free repairs or your money back-if you're lucky and persistent. Paint
flaking, or delaminiation as it's called in the industry, occurs when the
top coat of paint separates from the primer coat, mostly along horizontal
surfaces, often as a result of intense sunlight. When the paint peels,
the entire vehicle must be repainted after a new primer resurfacer has
been added. For some vehicles, the labor alone can run about twenty hours
at a cost of $50-$75 an hour.

Confidential US dealer service bulletins shows us one important benchmark
the auto industry uses to accept or reject secret warranty paint claims.
They show that, with Corsica and Beretta paint defects, for example, GM
lets dealers repaint the entire car, at no charge to the owner (up to $650
US), regardless if it was bought new or used. Interestingly, vehicles as
old as six years are still eligible and head office permission isn't needed
before work commences. 

Ford's more generous than GM (at least in theory), although its dealers
first need head office authorization. Ford has been repainting 1983-93
cars, minivans, vans, F-series trucks, Explorers, Rangers and Broncos free
of charge for the past five years under a little-known; Owner Dialogue
program. Ford says it discontinued the program in January '95, but owners
who cry foul and threaten small claims action are still getting compensation.
Brandishing some of the same internal dealer bulletins found in the summary
below, Ford owners argue convincingly that secret warranty programs are
unfair because not everyone has an equal chance of being told they exist.
They insist these programs should be used as compensation to owners for
the company's factory negligence-not as so-called "goodwill"
marketing tools that can be arbitrarily cut off.

Chrysler's paint problems are more recent and more severe. The company's
latest paint glitch called "shadowing" produces a blotchy shadow
or spotting all over the vehicle. All of Chrysler's '95 lineup of dark-
colored models, except for Jeeps, minivans, and Canadian-made vehicles
are affected. Cars that are kept in a heated garage and then driven in
sub-zero temperatures are especially vulnerable. Chrysler won't be repainting
its vehicles with the "shadowing" problem. Instead, the automaker
says it will buy back all affected vehicles and sell them at auction as
used vehicles-with the paint defect disclosed. Chrysler's other paint
deficiencies, affecting older vehicles, and minivans in particular, include paint
cracking and fading between the third and fifth year of ownership. Unlike Ford and
GM, no service bulletins or dealer memos detailing Chrysler's secret warranty
guidelines for older vehicles have yet turned up, but owners involved in
out-of-court settlements with the automaker say refunds have been offered
up to six years of ownership.

.The following summary based on service bulletins and owner feedback
has been set up to give you an easier understanding of which vehicles have
paint defects, the nature of the defect, and what euphemism is used by
the manufacturer to describe the secret warranty program that applies.

.*Refers to GM's Pontiac Division dealer letter sent on October 16,1992,
signed by Perry S. White, Director of Service/Customer Satisfaction. A
follow-up dealer service bulletin (Bulletin N0: 57-05- 01, "Dealer/Retailer
Administration of Case-by-Case individual Goodwill Adjustments") was
sent throughout the GM dealer network on April, 1995, giving all dealers
authorization to carry out "goodwill" repairs for any problem
free of charge, with no mileage limitations or deductible up to two years
beyond the vehicle's bumper-to- bumper base warranty. Both documents should
be subpoenaed if you go to small claims court. 

.GM All vehicles Problem as stated by the company "Clearcoat degradation,"
"Chalking," "whitening" Confirmation *Dealer letter Bulletin #331708, 
"Clearcoat degradation," issued November, 1993 Euphemism Special Policy 
Automaker solution Partial repaint/full repaint Limitations 100% up to 
6 years (optional 60,000 miles)

.GM 1988-92 trucks, vans 4X4s (blue, gray, silver, and black metallic)
Problem as stated by the company "Delamination," peeling Confirmation
*Dealer letter Bulletin #231054R, "Delamination," issued October,
1992 Euphemism Special Policy Automaker solution Full repaint Limitations
100% up to 6 years (optional 60,000 miles)

.GM Corsica/Beretta Problem as stated by the company "Delamination,"
peeling, fading Confirmation *Dealer letter Bulletin #9034110, "Delamination,"
issued September, 1990 Euphemism Policy Adjustment Automaker solution Full
repaint Limitations 100% up to 6 years (optional 60,000 miles) 

.Ford 1983-93 trucks, 4X4s, minivans, vans, all cars Problem as stated
by the company "Microchecking," peeling, fading, hazing Confirmation
Ford PR statements to Action Line columnists Bulletin #93-8-4, "Microchecking,"
issued April, 1993 Euphemism "Owner Dialogue" (Broncos, F-series,
and Mustangs) Automaker solution Full repaint Limitations 100%/Program
discontinued-Jan. '95 

.Chrysler/Mitsubishi 1995 vehicles/none made in Canada Problem as stated
by the company "Shadowing" Confirmation Automotive News, May
8, 1995 Bulletin None issued Euphemism "Goodwill" Automaker solution
Buyback/Mitsubishi will repaint Limitations None

.Chrysler 1989-94 vehicles Problem as stated by the company "Chalking"
Confirmation Owner feedback Bulletin None issued Euphemism "Goodwill"
Automaker solution Repaint Limitations None

.Chrysler 1990 Shadow/Sundance with clearcoat paint Problem as stated
by the company Alkaline spotting, industrial fallout, chemical "etching"
Confirmation Owner feedback Bulletin # 23-11-90, issued Sept 10, 1990 Euphemism
"Goodwill" Automaker solution partial repaint Limitations Reimbursable
under the base warrantyGetting a Settlement

.1. First take your vehicle to the dealer and ask for a written, signed
estimate. When handed the estimate ask that the paint job be done for free
under the manufacturer's "goodwill" program (Ford's euphemism
for this secret warranty is "Owner Dialogue Program; GM's term is
"Special Policy," and Chrysler just calls it "goodwill."
Don't use the term secret warranty, yet).

.2. Your request could be met with a refusal, or an offer to repaint
the vehicle for half the cost, or an agreement to repaint the vehicle free 
of charge. If you accept half-cost, make sure your cost is based on the
original estimate you have in hand, since some dealers jack up subsequent
estimates to the point whereby your 50% is really 100% of the true cost.

.3. If the dealer/automaker has already refused your claim, and the repair
hasn't been done yet, get an additional estimate that shows the problem
is factory-related from an independent garage.

.4. If the repair has yet to be done, send a registered claim letter/fax
to the automaker (copy the dealer) claiming the average of both estimates.
If the repair has been done at your expense, send a registered claim letter/fax
with a copy of your bill. A sample claim letter/fax is printed below.

.Sample Paint Complaint Letter/Fax WITHOUT PREJUDICE Date.

Dealer Gentlemen:
.I wish to hereby advise you that I am dissatisfied with the paint delamination
on my__________________. This is a factory-related defect confirmed by
internal service bulletins sent to dealers and covered under your
__________________program.

.If your "goodwill" program has ended, I ask that my claim
be accepted, nevertheless, inasmuch as I was never informed of your policy
while it was in effect and should not be penalized for not knowing it existed.
I hereby put you formally on notice under the federal Magnuson-Moss Act
and state consumer protection statutes that your refusal to apply this
extended warranty coverage in my case is an unfair warranty practice within
the purview of the above cited laws. I have enclosed several estimates
(my bill) showing that this problem is factory-related and will (has)cost
$___________to correct. I would appreciate you refunding me the estimated
(paid) amount, failing which, I reserve the right to have the repair done
elsewhere and claim reimbursement from you in small claims court.

.Awaiting your earliest convenient reply, within the next five (5) days,
before initiating a small claims lawsuit, I remain 

.Sincerely yours,

.Name Address and Tel #

.5. If a satisfactory response isn't received within 5 days, deposit
a copy of the estimate or paid bill and letter/fax claim before the small
claims court and await a trial date. This means automaker/dealer will have
to appear, no lawyer is required, costs should be minimal (under $50) and
a mediation hearing or trial will be scheduled in a few months, followed
by a judgment a few weeks later (time varies among different regions) Things
that you can do to help your case: pictures, maintenance work orders, previous
work orders dealing with your problem, dealer service bulletins, and an
independent expert (best is garage or body shop that did estimate or repair;
you can also use a local teacher/professor who teaches automotive repair).

.Other situations

.*If the vehicle has just been repainted but the dealer says "goodwill"
coverage was denied by the automaker, pay for the repair with a certified
check and write "under protest" on the check. Remember, though,
if the dealer does the repair, you don't have an independent expert who
can affirm the problem was factory related or was evident of premature
wearout. Plus, the dealer can say you or the environment caused the breakdown.

.*If the dealer/automaker offer a partial repair or refund, take it.
Then sue for the rest. Remember, if a partial repair was already done under
warranty, this is an admission of responsibility, no matter what "goodwill"
euphemism is used. Also, the repaired component/body panel should be just
as durable as if it were new. Hence, the clock starts ticking again, no
matter what the dealer's repair warranty limit says.

.Conclusion

.Very seldom do automakers contest these paint claims before small claims
court, opting instead, to settle, once the court claim is bounced from
their Customer Relations people to Legal Affairs. At that time, you will
probably be offered an out-of-court settlement that will vary from 50-75%
of your claim. Stand fast and make reference to the service bulletins you
intend to subpoena to publicly contest in court the unfair nature of this
"secret warranty" program (automaker lawyers cringe at the idea
of trying to explain why consumers aren't made aware of thesebulletins).
100% restitution will probably follow. It's been my experience as an auto
consumer advocate for almost 30 years, a member of the Canadian Parliament,
and author of about 75 auto consumer books (mostly Lemon-Aid), that only
about one person in ten will follow through on these instructions to get
compensation. Most will pay and then gripe. Too bad, 'cause it really is
true, the squeaky wheel does get the grease-read, compensation and justice!

.Best of luck, Phil Edmonston, author Lemon-Aid FAX: 305-563-2448

.Lemon-Aid 1997