GM Extends Powertrain warranty to 5yrs/100K miles

[Bruce Nunnally]

http://www.bloomberg.com/apps/news?pid=206...&refer=home

GM Will Lengthen Warranties, Reduce Cash Incentives, People Say

By Jeff Green

Sept. 6 (Bloomberg) -- General Motors Corp., the world's largest automaker, will offer longer warranties on its vehicles in a bid to boost confidence in GM products, two people familiar with the plan said.

The extended warranties mark the next phase of an eight- month-old initiative to rely less on cash incentives to generate sales, said the people, who asked not to be named because details won't be announced until later today. GM spokeswoman Mary Henige had no comment

[Bruce Nunnally]

Some GM products will have a 5-year/100,000-mile warranty, while others will carry as long as a 10-year/100,000-mile warranty, a GM dealer familiar with the plan said today.

GM CEO Rick Wagoner is scheduled to announce a "major customer initiative" at press conference here at 1 p.m. today.

"You'll see a base-line long-term warranty," the dealer said. "And for the wearing-out parts, a more conventional warranty."

[Ranger]

I think that will go a lot farther in boosting sales than any other incentives. Way to go GM!

[GreenMachine]

Its about time!

Combine this with the recent spill of Toyota recalls ranging from air bags to steering control, and I think this will show GM is commited to and is improving quality across the board.

[Bruce Nunnally]

GM Announces Best Warranty of Any Full-Line Automaker

GM to Provide 100,000-Mile/Five-Year Powertrain Warranty, Roadside Assistance and Courtesy Transportation on 2007 Cars and Trucks

Comprehensive Coverage Validates Dramatic Improvements in GM Quality, Durability

DETROIT – General Motors today announced the best warranty of any full-line automaker, with coverage up to 100,000 miles or five years across its entire 2007 car and light-duty truck lineup in the United States and Canada, reflecting its success in dramatically improving the quality and durability of its vehicles.

GM’s new 100,000 Mile Warranty coverage is a fully transferable five-year, 100,000-mile powertrain limited warranty with no deductible. GM also has decided to expand its roadside assistance and courtesy transportation programs to match the powertrain warranty term. Altogether, it’s the best coverage in the auto industry.

“We’ve been telling everyone how strong GM’s cars and trucks are in terms of value, design, quality and durability. Now we’re going to back it up,” Chairman and CEO Rick Wagoner said. “This new warranty, combined with GM’s outstanding quality, competitive pricing, relevant technologies and a strong new lineup of cars and trucks, provides motorists with an unprecedented level of value and peace of mind.

“This latest step in our North America turnaround plan reflects the confidence we have in the quality of our cars and trucks. It’s the result of years of hard work by our employees, suppliers and dealers. It’s something that motorists want and deserve. For those who haven’t driven a GM car or truck in a while, this is our way of saying, ‘Come on back and see what we’ve done.’

“The bottom line is GM now has the best coverage in the industry,” Wagoner said. “It includes the best warranty of any full-line automaker, equally compelling roadside assistance and courtesy transportation programs, unique safety and security technologies like OnStar and StabiliTrak, and the nation’s largest network of outstanding dealers, with well-trained GM Goodwrench technicians who service GM cars and trucks better than anybody else.”

The no-deductible, fully transferable limited powertrain warranty covers more than 900 components related to the engine, transmission, transfer case (if applicable) and final drive assemblies on all 2007 model-year Chevrolet, Pontiac, Buick, GMC, Hummer, Saturn, Saab and Cadillac cars and light-duty trucks sold in the United States and Canada. GM will extend the existing roadside assistance plan to 100,000 miles or five years, and will provide courtesy transportation for a covered warranty repair.

The new warranty will apply retroactively to 2007 GM cars and trucks already sold.

For non-powertrain components, GM’s Bumper-to-Bumper New Vehicle Limited Warranty remains in effect: four years or 50,000 miles for Buicks, Cadillacs, Hummers and Saabs, and three years or 36,000 miles for Chevrolets, GMCs, Pontiacs and Saturns.

The new package is an important part of GM’s sales and marketing strategy, which is focusing consumers on the inherent value of its cars and trucks. Higher quality vehicles, reduced incentives and lower daily rental fleet sales are helping increase the residual value of GM cars and trucks. In addition, GM transaction prices have been rising, well above the industry average.

Wagoner said today’s moves were the result of GM’s successful decade-long effort to dramatically improve the quality of its cars and trucks. “From the men and women who design, engineer and build our vehicles, to our union partners, suppliers and dealers, the GM team’s commitment to quality has enabled us to deliver this consumer confidence package.”

GM tracks vehicle quality several ways, including analyzing warranty visits and the results of 10 million customer surveys each year, and studying the quality surveys of several independent organizations. GM has made significant progress on all fronts:

Warranty repairs at dealers have decreased 40 percent during the past five years.

Two GM brands, Buick and Cadillac, placed in the top five in the J.D. Power and Associates Vehicle Dependability Study released last month.

GM swept the large pickup segment, placed 11 models in the top three of their segments and had two models top their segments in the J.D. Power and Associates Initial Quality Study released earlier this year.

In the Strategic Vision 2006 Total Quality Index Study, five GM models topped their segments – more wins than any other manufacturer for the second consecutive year.

GM dealers also rank among the leaders in the most recent J.D. Power and Associates Consumer Service Index study, which measures customer satisfaction among new vehicle owners with the dealer service department during the first three years of vehicle ownership.

GM’s Buick brand ranked second in the American Customer Satisfaction Index study released last month, administered by the University of Michigan's National Quality Research Center .

GM will begin promoting the new initiative during Thursday night’s NBC-televised NFL season opener between the world champion Pittsburgh Steelers and the Miami Dolphins. In addition, a dedicated web site (www.gm.com/warranty) provides consumers with additional details about the program.

[thu]

This news doesn't mean that much. It would be something, though, if the new warranty was bumper-to-bumper.

[Bruce Nunnally]

I disagree. If you take the powertrain, which is to say the engine and transmission, costs off the table by providing warranty coverage, then the chance of out of pocket costs to the owner are much reduced. You are left with expensive items like ABS, shocks/struts, or computer modules perhaps, but much better off than with the engine and tranny on your nickel.

I would definitely prefer to see a bumper to bumper 6 year/100K mile warranty on Cadillacs. I am not clear what the delta cost between a powertrain limited warranty and a bumper to bumper warranty are. But I am pleased that GM took this step and feel it will help people gain confidence in the brand as a whole.

On the majority of GM cars, the addition of a 5Y/100K mile powertrain warranty over the standard 3Y/36K mile warranty is significant.

[Ranger]

This news doesn't mean that much. It would be something, though, if the new warranty was bumper-to-bumper.

Let the warranty wars begin. Give it time.

[GreenMachine]

Better than nothing I suppose, this most likely would have saved those people who had "bad luck" head gaskets and those bottom end oil leaks some cash.

I think it helps boost confidance and I'm sure since ford already upped it, chrysler might go back to the 7/70,000 from what they have now which is 3/36,000.

I think ranger is right, first it was MPG in every commercial, now it will warranties.

[JohnnyG]

All I can say is "It's about time!". When did we on this board suggest this move be made? I specifically remember making this suggestion about 2 or 3 years ago. Apparently it fell on deaf ears.

[thu]

Yes, this is better than nothing and I agree for the most part with what Bruce says. However, in my experience, the powertrain is the least troublesome. It might not be for some of the members of this board, but I've had pretty much zero problems with powertrains in all the cars that I have had including a Deville that has 300,000 miles and another Deville that has 238,000 miles.

I have a GM 6yr/100k bumper-to-bumper warranty on my current Caddy right now. As such, this announcement that 2007 models will all get stretched warranties just on the drivetrain doesn't excite me.

So, that's why I said this isn't that big of a deal.

A similar article in today's Wall Street Journal states that GM saved $300 million due to quality improvements in Q2. I'd like to see them extend that 6yr/100k warranty so that it's bumper to bumper.

The problems I have had are non-powertrain related - tons of them.

In the end, this is a step in the right direction.

[JimD]

....

Warranty repairs at dealers have decreased 40 percent during the past five years.

Every silver lining contains a cloud. This 40% decrease in warranty billing has to have dealers scrambling for service department revenue.

Look for more promotional "dealer recommended" or otherwise unnecessary flushes and 20 point inspection programs.

[thu]

Don't forget the recommended wiper blade rotations and muffler bearing lubes.

[GreenMachine]

I think the nicest part of it is the road side assistance part. 5 years/100k of not having to pay for a tow...then again it probibly only lets you to it to a dealer But if you need a tow it probiby is something to do with the powertrain, Be intresting to read the details on that, I know cadillac has had a road side service for a few years (theres a sticker attached to theinside of my glove box door on this 98 and my 92) so far only called it once when I was stuck in mud...long story.

[KHE]

Don't forget the recommended wiper blade rotations and muffler bearing lubes.

Don't forget changing weak piston return springs.

[JohnnyG]

I think the nicest part of it is the road side assistance part. 5 years/100k of not having to pay for a tow...then again it probibly only lets you to it to a dealer But if you need a tow it probiby is something to do with the powertrain, Be intresting to read the details on that, I know cadillac has had a road side service for a few years (theres a sticker attached to theinside of my glove box door on this 98 and my 92) so far only called it once when I was stuck in mud...long story.

I like that part too. My car now has almost 80,000 trouble free miles, but next time I head it to Florida I'll be wondering which maintenance item I missed.

Odd thing though, my auto insurance carrier, AIG, just offered free towing and roadside assistance as a benefit to having insurance with them! No additional cost, I didn't ask for it NOTHING! They even told me I could drop my towing coverage if I wished, but said keeping it would cover more of the final out-of pocket expenses. I thought that was really nice of them!

[bseals]

Is anyone a 2007 purchaser that has already purchased an extended 100K bumper-to-bumper warranty BEFORE this was announced? In other words, when I purchased my 2007 CTS-V in August 2006, I bought an extended warranty to cover bumper-to-bumper from now until 100K miles, and power train 50,001 - 100K miles. Since now power train is standard until 100K, the extended warranty should be cheaper since it no longer needs to cover power train at all.

I called Customer Service after the press release, who just said refunds would be automatic, but I haven't heard anything since. Has anyone in a similar situation received a refund, or not?

Thanks!!

[thu]

If you don't get your money back soon, talk to the regional GM rep and get them involved.

[Bruce Nunnally]

The Saturn crowd found that the check came from National Mechanical Service Center, and if you have a lien (loan) on the vehicle, went to the lienholder.

http://www.skyroadster.com/forums/showthre...warranty+refund

[bseals]

Thanks very much for your help!

Beth