GM to cut powertrain warranty to 60,000 miles
http://finance.yahoo.com/news/gm-cut-chevy-gmc-powertrain-warranty-60-000-143947688--finance.html DETROIT (Reuters) - General Motors Co said on Thursday it plans to cut its powertrain warranty on...
Forum Discussion
People look at these power train warranties wrong and don't understand why the companies marketing dept creates them.
A long warranty is for sales. It promotes the product by making a person feel safe with it.
High quality products that people already feel that way about don't offer such warranties. Take a look at Lexus, Mercedes, etc and you find that these are highly coveted brands because of the perceived quality and not because of a warranty.
GM must feel they don't need to dangle the long warranty carrot in front of people to get them to buy anymore and that people already feel good (or better) about their quality. There has to be some truth in the belief that their quality is better or the campaign will backfire almost immediately.
In some ways a shorter warranty is actually a good indicator of a companies success and evolution.
It absolutely DOES NOT mean the company has less faith in their product - it's quite the contrary.
A long warranty is for sales. It promotes the product by making a person feel safe with it.
High quality products that people already feel that way about don't offer such warranties. Take a look at Lexus, Mercedes, etc and you find that these are highly coveted brands because of the perceived quality and not because of a warranty.
GM must feel they don't need to dangle the long warranty carrot in front of people to get them to buy anymore and that people already feel good (or better) about their quality. There has to be some truth in the belief that their quality is better or the campaign will backfire almost immediately.
In some ways a shorter warranty is actually a good indicator of a companies success and evolution.
It absolutely DOES NOT mean the company has less faith in their product - it's quite the contrary.
