Wednesday, September 06, 2006

Warranty wars - GM to offer 5 year / 100000 mile powertrain warranty

GM 100000 mile warrantyIn what can only be termed an 'about time' move from GM, and no doubt pushed over the edge by recent increases of Ford warranties...GM is expected to announce later today a move from their current 3 year/ 36000 mile bumper-to-bumper warranty on most vehicles in the US and Canada (Cadillac and Buick currently already have longer bumper-to-bumper warranties) to a 3 year / 36000 mile bumper-to-bumper and a 5 year / 100000 mile powertrain. The longer warranty is expected to be effective on 2007 and newer vehicles. It is unknown, but expected, that Cadillac and Buick will join the rest of the brands with longer powertrain warranties as well.

Recently, Ford announced 5 year / 60000 mile powertrain warranties on Ford and Mercury products and 6 year / 70000 mile powertrain warranty on Lincoln.

Update - GM has officially announced that all 8 brands will get 5 year / 100000 mile powertrain warranties to go with their existing bumper-to-bumper coverage. In addition, for the same terms as the powertrain warranty, all cars in all 8 brands will have included roadside assistance.

GM is promoting this with a new ad slogan "A New Level of Confidence" that includes fleets of new GM vehicles driving many feet above all other cars on the road - a nice visual (especially the Pontiac Solstice being transported with giant chains holding it a few feet above the trailer).

A bit more time than 5 years would have been nice - since I know few people who would reach the 100k mark at or before the end of 5 years. 6 or 7 years would have been more in keeping with an average of 15k miles per year. 10 would have at least put GM on par with Hyundai, Kia, and former partner Suzuki as 'standing behind their product' in the mind of many consumers.

It will be interesting to see how well they do with this initiative.

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