GM to cut powertrain warranty to 60,000 miles

[LoneStar1]

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 Chevrolet and GMC vehicles for the 2016 model year because the offer was not a strong enough selling point.

The five-year, 100,000-mile powertrain coverage, in place for nearly a decade, will be reduced to five years and 60,000 miles for the 2016 models.

The Detroit automaker said it also will scale back its offer of two years of free maintenance, including oil changes and tire rotations, on most new Chevy, GMC and Buick vehicles. The brands will reduce the number of free service visits to two, from four, starting with 2016 models.

[JALLEN4]

NJRVer wrote:
I think you can trace the reasoning to the fact that nobody keeps a car for more than 3 years.
Almost nobody "buys" a car, they lease it.
The normal lease is either 2 or 3 years with 10,000 mile per year max allowed.
After that the car is turned in and it becomes a used car. So it is only going to have 20,000-30,000 miles on it. A 100,000 miles warranty would be meaningless.
Do all the manufacturers honor the warranty in a used car sale?

Your statements are somewhat in error. Just over 25% of new car purchases are leases. The standard lease mileage is 15,000 miles per year. There is a significant savings for lower mileage leases and as a result many of the ads we see are for low mileage lease payments. These can be 12,000, 10,000, or even 7,500 in some cases but are not the majority of actual transactions.

The average vehicle age is now over eleven years and would seem to point out that many people do keep vehicles longer than three years. This is especially true in the light truck market where the vehicle is more purpose oriented.

I am sure GM realizes there will be some consequence of cutting the warranty duration but I am also sure they know exactly how much that warranty is costing them. Their determination is that money can be better utilized in other areas if not part of it converted to additional profits. It has little to nothing to do with their "faith" in the product and in reality the cost of warranty and reliability of the product has been improving over the last several years.

[spoon059]

Yet another nobody. Wife has a 2008 and I have a 2010. I didn't know they were so disposable...

[colliehauler]

NJRVer wrote:
I think you can trace the reasoning to the fact that nobody keeps a car for more than 3 years.
Almost nobody "buys" a car, they lease it.
The normal lease is either 2 or 3 years with 10,000 mile per year max allowed.
After that the car is turned in and it becomes a used car. So it is only going to have 20,000-30,000 miles on it. A 100,000 miles warranty would be meaningless.
Do all the manufacturers honor the warranty in a used car sale?

Another nobody here. I buy trucks don't lease and keep them a long time. Welcome to my world.

[Dave_H_M]

I think you can trace the reasoning to the fact that nobody keeps a car for more than 3 years.
Almost nobody "buys" a car, they lease it.

:R Dave Nobody here. The wife gets ansey with old iron and so we trade every 5 years.

My last TV (F 250 power stroke) rattled down the lane with the new driver behind the wheel at 13 years and 176 K on the clock.

The final clincher in me being a nobody is no leases and no vehicle payments.

[ib516]

Lessmore wrote:

ib516 wrote:

Lessmore wrote:
I just bought a new 2015 Chevy. The 100,000 mile warranty was important to me, when I compared GM to Chrysler (Jeep Cherokee) and Ford (Explorer) with their shorter warranties of 60,000 miles. It was part of my decision.

In view of this news, glad I bought the 2015 GM, when I did.

BTW, I found both the Jeep Cherokee (3.2 V6) and Ford Explorer (3.5 V6) excellent vehicles, when I tested them. I would of been happy to have either the Jeep or the Ford.

My experience test driving new vehicles from GM, Ford and Chrysler demonstrated very clearly to me, just how good new vehicles from these three companies are nowadays.

I wasn't interested in testing other manufacturers vehicles, as have found that the domestic manufacturers' vehicles generally have more comfort, leg and shoulder room for larger guys, with bad 'hockey' knees like myself. 😄

Les

What did you buy Les?

ib516,

I bought a new 2015 Impala LT with the LT2 option which is the 305 hp- 3.6 liter DOHC V6.

Before purchase, I road tested and tried the '15 Jeep Cherokee (4WD), 3.2 L. V6, 9 speed ZF transmission, the '15 Ford Explorer, 3.5 L. V6, 6 speed transmission, Chevy Equinox, 3.6 V6, 6 speed and the Impala.

Next to the Impala, I liked the Jeep best, then the Ford. Both these I found are great vehicles.

The prime reason I chose the Impala over the Jeep and the Ford was because of my 'hockey' knee. I'm fairly large guy (6'3") and due to an old hockey injury have found that I need a vehicle that I can stretch my leg out, as much as possible.

The Impala has a significant amount of leg room (around 45.8 inches - driver's seat) and I can stretch my leg out, while driving. It also has very good shoulder room...which I also need. I found that the Impala front leg room, worked out better for me, than the other vehicle's I road tested.

I would like to thank you personally, for providing me with a lot of info on the new Jeep Cherokee. You might recall our email discussion of a number of months ago, when you told me about your experience and opinion of your new Cherokee.

If it wasn't for my knee issue, there is a very good chance I would be driving a new Cherokee, V6, 4WD right now. I was very impressed with it's power, comfort, cabin quiet and appearance.

ib516, thanks very much for your help. That Jeep Cherokee V6 is a fine vehicle.

Les

Nice choice that new Impala is impressive!

[45Ricochet]

NJRVer wrote:
nobody keeps a car for more than 3 years.
Almost nobody "buys" a car, they lease it.

Count me in as " nobody " :B Mine are approaching or past the 10 year mark and were paid for with cash up front. Still running strong BTW.

[Gr8life]

This warranty thing is something like the old joke about hiring a secretary. Which one got hired? The good looking one, of course. We all like to think that we are smart shoppers but who really cares or remembers what the warranty was on their '57 Chevy or '67 Mustang? We bought Chevy's because they would blow the doors off the Fords of that era. We still buy them today based somewhat on those same feelings. GM realized we purchase on the basis of looks, performance, etc. The twentieth etc. would be a longer warranty than the competition.

[MFinCA]

NJRVer wrote:
I think you can trace the reasoning to the fact that nobody keeps a car for more than 3 years.
Almost nobody "buys" a car, they lease it.

I guess I am the definition of nobody. The last new car I bought was a 1977 Toyota Corolla. My cars are always at least 2nd hand. I always pay cash for my vehicles. My last few vehicles were bought with under 100K miles on them. I then drive them many, many miles until they wear out. I replaced a 1999 Chevy Suburban 2500 last year. I bought it in 2004 with 70K miles on it, and wore it out 10 years later with 227K on it.

All things being equal, I would tend to go for a vehicle that had a longer warranty--just in case.

[NJRVer]

I think you can trace the reasoning to the fact that nobody keeps a car for more than 3 years.
Almost nobody "buys" a car, they lease it.
The normal lease is either 2 or 3 years with 10,000 mile per year max allowed.
After that the car is turned in and it becomes a used car. So it is only going to have 20,000-30,000 miles on it. A 100,000 miles warranty would be meaningless.
Do all the manufacturers honor the warranty in a used car sale?

[Lessmore]

ib516 wrote:

Lessmore wrote:
I just bought a new 2015 Chevy. The 100,000 mile warranty was important to me, when I compared GM to Chrysler (Jeep Cherokee) and Ford (Explorer) with their shorter warranties of 60,000 miles. It was part of my decision.

In view of this news, glad I bought the 2015 GM, when I did.

BTW, I found both the Jeep Cherokee (3.2 V6) and Ford Explorer (3.5 V6) excellent vehicles, when I tested them. I would of been happy to have either the Jeep or the Ford.

My experience test driving new vehicles from GM, Ford and Chrysler demonstrated very clearly to me, just how good new vehicles from these three companies are nowadays.

I wasn't interested in testing other manufacturers vehicles, as have found that the domestic manufacturers' vehicles generally have more comfort, leg and shoulder room for larger guys, with bad 'hockey' knees like myself. 😄

Les

What did you buy Les?

ib516,

I bought a new 2015 Impala LT with the LT2 option which is the 305 hp- 3.6 liter DOHC V6.

Before purchase, I road tested and tried the '15 Jeep Cherokee (4WD), 3.2 L. V6, 9 speed ZF transmission, the '15 Ford Explorer, 3.5 L. V6, 6 speed transmission, Chevy Equinox, 3.6 V6, 6 speed and the Impala.

Next to the Impala, I liked the Jeep best, then the Ford. Both these I found are great vehicles.

The prime reason I chose the Impala over the Jeep and the Ford was because of my 'hockey' knee. I'm fairly large guy (6'3") and due to an old hockey injury have found that I need a vehicle that I can stretch my leg out, as much as possible.

The Impala has a significant amount of leg room (around 45.8 inches - driver's seat) and I can stretch my leg out, while driving. It also has very good shoulder room...which I also need. I found that the Impala front leg room, worked out better for me, than the other vehicle's I road tested.

I would like to thank you personally, for providing me with a lot of info on the new Jeep Cherokee. You might recall our email discussion of a number of months ago, when you told me about your experience and opinion of your new Cherokee.

If it wasn't for my knee issue, there is a very good chance I would be driving a new Cherokee, V6, 4WD right now. I was very impressed with it's power, comfort, cabin quiet and appearance.

ib516, thanks very much for your help. That Jeep Cherokee V6 is a fine vehicle.

Les

[DakotaDad]

Warranty is just one of several factors when I pick a new vehicle.

1. Capability/features
2. Price/Value
3. Warranty
4. Aesthetics/Brand preference
5. On the lot vs. order
6. Color

There's usually a clear cut winner by the time I get through #2. Haven't had the warranty be the deciding factor yet. Kinda sucks that GM is shortening it, but unless their warranty suddenly becomes dramatically below the industry standard, it likely wouldn't change my decision. And I say that despite a slight anti-GM bias.

[Gr8life]

Judging from the signature vehicles, it looks like most contributors favor their current brand and don't have much good to say about the competition. Surprise, surprise.

[fla-gypsy]

After thinking about what motivates me to buy an automobile I have come to the concluusion that I do not buy it based on how much warranty it has but on my perception of whether I will need that warranty. Ford has provided me the best vehicles I have ever owned in the last 12 years and my perception keeps me coming back. From 1980-2003 you couldn't have given me a Ford or a Dodge and I was all GM. Ford has my business now regardless of warranty length until they give me reason to change. I am sure others have similar thoughts based on their favorite brand right now.

[goducks10]

UsualSuspect wrote:
I would never buy a vehicle based on Consumer Reports ratings. A good example is they never drove some of the vehicles they rated as the worse in their last report, but you have to order the entire report to see that footnote. How can you rate something you have never driven?
So GM is changing their warranty to match the others, big deal. I like the comment that GM must not have much faith in their product, but then I have to wonder, does that mean the others never did?
They have found another way to boost profit, and selling you a factory after warranty runs out policy means more $$$$ in their pocket if you makes you more comfortable, if not, they will sell you the parts, none of them care about the labor, they see no $$$ on labor after the warranty is up.

Consumer Reports reliability ratings are sent in from readers. The road tests are not the same as the reliability ratings. You can get road tests from lots of sources. Of course seat of the pants is the best.

[RCMAN46]

transamz9 wrote:
I'm lost I guess. I thought Ram still had the 100,000 mile warranty?

Ram Truck Warranty

This is what the 2015 Chevy provides.

2015 Chevy Warranty

I do not believe we know what Ram has in mind in 2016 or the the future. I do hope they keep the 5year/100,000 mile though.

I suspect one of two things will happen. Gm will go back to the 5 year/100,000 mile before 2016 or everyone else will follow GM.

I prefer we compare apples to apples.