GM boosts 2007 powertrain warranty
09-12-2006, 10:38 PM
#1
Suzuka Master
Thread Starter
GM boosts 2007 powertrain warranty
GM boosts 2007 powertrain warranty
POSTED: 0206 GMT (1006 HKT), September 6, 2006
DETROIT (AP) -- General Motors Corp. has increased the powertrain warranty on all of its 2007 passenger vehicles in an effort to help it sell more autos by boosting its reputation for quality.
The increase to five years or 100,000 miles from the previous warranty of three years or 36,000 miles is effective Wednesday and covers 900 engine, transmission and driveline components, said Mark LaNeve, GM North America's vice president for sales, service and marketing.
The warranty is part of the company's overall strategy to sell the value of its products as opposed to a deal laden with cash incentives, LaNeve said. The automaker also is hoping that it will erase a perceived quality gap between its vehicles and those of its main Japanese rivals, he said.
LaNeve said that by both internal and external measures, such as studies by J.D. Power & Associates, GM has closed that quality gap.
"Because of deficits 20 years ago, we're living with a perceptual gap. Perception hasn't caught up to reality," he said.
The warranties have no deductibles and are transferrable, which should boost the resale value of GM vehicles. The warranties, which will be extended retroactively to any previously purchased 2007 vehicles, are accompanied by GM's roadside assistance and courtesy car programs.
GM said the powertrain warranties are better than any "full-line manufacturer" in the industry and will be in addition to the current three-year, 36,000-mile bumper-to-bumper guarantees. Buicks, Cadillacs, Hummers and Saabs currently have four-year, 50,000-mile bumper-to-bumper coverage.
Korean automaker Hyundai offers 10-year, 100,000-mile powertrain guarantees.
Spokesmen for other automakers, including Ford Motor Co. and DaimlerChrysler AG's Chrysler Group, said they had no immediate plans to match GM's warranties.
Ford 'comfortable'
"We're comfortable with our position in the marketplace and what we decide to do or not do in the future is going to be dictated by what's right for Ford and our customers and not by anything that GM does," Ford spokesman Jim Cain said.
In July, Ford extended its powertrain warranties by up to two years on its 2007 Ford, Lincoln and Mercury models.
On Ford and Mercury vehicles, the powertrain warranty was raised to five years or 60,000 miles, whichever comes first, up from a three-year, 36,000-mile bumper-to-bumper warranty.
Lincoln powertrain warranties were extended to six years or 70,000 miles, up from the previous four-year, 50,000-mile bumper-to-bumper guarantee.
Chrysler spokesman Kevin McCormick said the company last year discontinued its seven-year, 70,000-mile powertrain warranty after offering it for three years. It now provides a three-year, 36,000-mile powertrain warranty.
"We found that customers were not really finding much value in that program and that they found more value in the products that we were offering than they did in the extended powertrain warranty," he said.
Toyota Motor Corp. has no plans to change its current powertrain warranty of five years or 60,000 miles, spokesman Xavier Dominicis said.
A message was left for officials with Honda Motor Co.
LaNeve said two-thirds of GM customers trade their vehicles before they hit five years or 100,000 miles, so their entire time of ownership would be covered under the new warranties.
He would not disclose the cost of the warranties but said that GM's quality has improved during the last five or 10 years to where it's cost-effective to offer such guarantees.
Copyright 2006 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
http://edition.cnn.com/2006/BUSINESS...m.warranty.ap/
POSTED: 0206 GMT (1006 HKT), September 6, 2006
DETROIT (AP) -- General Motors Corp. has increased the powertrain warranty on all of its 2007 passenger vehicles in an effort to help it sell more autos by boosting its reputation for quality.
The increase to five years or 100,000 miles from the previous warranty of three years or 36,000 miles is effective Wednesday and covers 900 engine, transmission and driveline components, said Mark LaNeve, GM North America's vice president for sales, service and marketing.
The warranty is part of the company's overall strategy to sell the value of its products as opposed to a deal laden with cash incentives, LaNeve said. The automaker also is hoping that it will erase a perceived quality gap between its vehicles and those of its main Japanese rivals, he said.
LaNeve said that by both internal and external measures, such as studies by J.D. Power & Associates, GM has closed that quality gap.
"Because of deficits 20 years ago, we're living with a perceptual gap. Perception hasn't caught up to reality," he said.
The warranties have no deductibles and are transferrable, which should boost the resale value of GM vehicles. The warranties, which will be extended retroactively to any previously purchased 2007 vehicles, are accompanied by GM's roadside assistance and courtesy car programs.
GM said the powertrain warranties are better than any "full-line manufacturer" in the industry and will be in addition to the current three-year, 36,000-mile bumper-to-bumper guarantees. Buicks, Cadillacs, Hummers and Saabs currently have four-year, 50,000-mile bumper-to-bumper coverage.
Korean automaker Hyundai offers 10-year, 100,000-mile powertrain guarantees.
Spokesmen for other automakers, including Ford Motor Co. and DaimlerChrysler AG's Chrysler Group, said they had no immediate plans to match GM's warranties.
Ford 'comfortable'
"We're comfortable with our position in the marketplace and what we decide to do or not do in the future is going to be dictated by what's right for Ford and our customers and not by anything that GM does," Ford spokesman Jim Cain said.
In July, Ford extended its powertrain warranties by up to two years on its 2007 Ford, Lincoln and Mercury models.
On Ford and Mercury vehicles, the powertrain warranty was raised to five years or 60,000 miles, whichever comes first, up from a three-year, 36,000-mile bumper-to-bumper warranty.
Lincoln powertrain warranties were extended to six years or 70,000 miles, up from the previous four-year, 50,000-mile bumper-to-bumper guarantee.
Chrysler spokesman Kevin McCormick said the company last year discontinued its seven-year, 70,000-mile powertrain warranty after offering it for three years. It now provides a three-year, 36,000-mile powertrain warranty.
"We found that customers were not really finding much value in that program and that they found more value in the products that we were offering than they did in the extended powertrain warranty," he said.
Toyota Motor Corp. has no plans to change its current powertrain warranty of five years or 60,000 miles, spokesman Xavier Dominicis said.
A message was left for officials with Honda Motor Co.
LaNeve said two-thirds of GM customers trade their vehicles before they hit five years or 100,000 miles, so their entire time of ownership would be covered under the new warranties.
He would not disclose the cost of the warranties but said that GM's quality has improved during the last five or 10 years to where it's cost-effective to offer such guarantees.
Copyright 2006 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
http://edition.cnn.com/2006/BUSINESS...m.warranty.ap/
09-13-2006, 06:39 AM
#2
well Honda should be offering a 150K warranty on the auto trans. There is no reason that a properly maintained automatic should not last at least that long. Honda's automatics used with the pre '98 F series K series and C series have absolutly no reliability problems and it is not uncommon to see accords with 300 or 400K on the ORIGINAL AUTO TRANS
09-13-2006, 11:40 AM
#3
Chloe @ 17mo
Originally Posted by YeuEmMaiMai
well Honda should be offering a 150K warranty on the auto trans. There is no reason that a properly maintained automatic should not last at least that long. Honda's automatics used with the pre '98 F series K series and C series have absolutly no reliability problems and it is not uncommon to see accords with 300 or 400K on the ORIGINAL AUTO TRANS
09-13-2006, 12:50 PM
#4
The sizzle in the Steak
09-13-2006, 01:27 PM
#5
Originally Posted by AsianRage
True. But Honda didn't offer 200HP+ cars (not counting the NSX) before 98 either.
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