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.

[transamz9]

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

Ram Truck Warranty

[UsualSuspect]

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.

[ib516]

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]

wcjeep wrote:
Chrysler cut back on the warranty for the 2006 trucks. The 2005 Dodge trucks had a much longer warranty. Marketing surveys at the time stated the longer warranty was not a major factor for customer purchase.

Looks like GM is adjusting to the market. Also, avoid the Jeep Cherokee. We just completed our first Lemon Law on a 2014. Among the many problems was an intermittent cooling system leak that could not be found. Occasionally leaked while at operating temp as steam. No drips on the ground.

Mine has the same type of leak, but it was found and the hose that leaks is on national backorder. Seems like its a common problem based on that. Maybe the mechanic was inept?

That's the only issue we have had with the Jeep, ours has been good.

[TomG2]

News flash! OMG! GM now offers the same powertrain warranty as their biggest competitor. BFD!

[Lessmore]

tinner12002 wrote:
Obviously not much confidence in their product in my opinion!

By that standard....you would then have to extend that lack of confidence in other firms who have the same warranty as GM will have in 2016...such as Chrysler and Ford.

Which leads me to think, that that view is without credibility.

[goducks10]

Unless buying a diesel, longer warranties are meaningless. It's still about the end product and what the customers needs are. You could have a 10yr/100,000 warranty but if the vehicle doesn't produce what the customer wants then the warranty is worthless. Buyers are going to buy for several reasons. One being brand loyalty, another being past reliability ratings and lastly style. I suppose some will buy a Kia because of the warranty, but it's obvious that the 100,000 warranty they offer isn't enough to overcome other buyer reasons or they would be the top seller.

It's the same with TT/5ers. Jayco offers a 2yr warranty, but they also don't offer units that meet every ones needs. After the 2yr warranty's up then you're stuck with what you have. Same with vehicles.

I really doubt GM will suffer from this. FWIW we just bought a new Camry. I didn't even know GM offered a 100,000 warranty, because we don't like any cars they have so we never even looked at them. The GM loyals or those that like the GM offerings IMO will still buy them.

[TomG2]

proxim2020 wrote:
...snip........ I didn't even know the 100k warranty still existed. Thought it died with old GM. Hyundia and Kia boast about how their warranty beats out competitors in all of their ads and that draws a lot of business in for them.

You made their point for them. If customers don't know or care about the 100k warranty then their promotional dollars are better off spent somewhere else. It might be in lower prices or additional standard equipment to keep up with the competition.

[tinner12002]

Obviously not much confidence in their product in my opinion!

[wnjj]

proxim2020 wrote:
So at the end of the day it seems they're scaling back the warranty because it didn't help sell cars? I'm struggling to figure out how this will help them sell more cars, especially after the whole recall debacle. They really did a bad job of marketing that warranty over the years which may explain the lack of interest. I didn't even know the 100k warranty still existed. Thought it died with old GM. Hyundia and Kia boast about how their warranty beats out competitors in all of their ads and that draws a lot of business in for them.

It doesn't have to sell them more cars. It can even sell them somewhat less cars so long as they spend less on warranty repairs.

[Community Alumni]

So at the end of the day it seems they're scaling back the warranty because it didn't help sell cars? I'm struggling to figure out how this will help them sell more cars, especially after the whole recall debacle. They really did a bad job of marketing that warranty over the years which may explain the lack of interest. I didn't even know the 100k warranty still existed. Thought it died with old GM. Hyundia and Kia boast about how their warranty beats out competitors in all of their ads and that draws a lot of business in for them.

[Paul_Clancy]

Lessmore wrote:

SARGUY wrote:
Gm is on the fast track for alienating me, I have bought exclusively GM vehicles for over 40 years, some were good some were not. If they think that reducing the warranty by 40 % is a marketing tool then they have to be idiots regardless of what their defenders say. Hyundia has a ten year warranty on their vehicles Now if I were a first time new vehicle purchaser who do you think I am going to buy my first vehicle from?

Hyundai has a 5 year warranty in Canada. I think manufacturers offer different warranties in different countries.

I believe the Hyundai US warranty is not transferable to a second owner. Since that is illegal in Canada they chose to offer a 5 year here.

[FishOnOne]

SARGUY wrote:
Gm is on the fast track for alienating me, I have bought exclusively GM vehicles for over 40 years, some were good some were not. If they think that reducing the warranty by 40 % is a marketing tool then they have to be idiots regardless of what their defenders say. Hyundia has a ten year warranty on their vehicles Now if I were a first time new vehicle purchaser who do you think I am going to buy my first vehicle from?

This is a double sided sword...

If the customers aren't purchasing the product because of the extra warranty, then why offer it and pass on the savings to the customer and share holders...

If customers feel this is a way the bean counters are thanking them who just bailed out this company then this could back fire.

Having said that I do believe that after 60k miles most problems will be flushed out. Let's just hope GM stays profitable and doesn't turn into a foreign brand like the other company did. :E

[msmith1_wa]

Most people don't drive 100,000 miles in five years so the warranty will end at the 5 year time frame.

Obviously for those that do this is a problem.

[christopherglen]

Way I see it, it is either a way to get people to trade earlier, at 60k instead of 100k. Or a way to save cash 4-5 years after a sale on warranty repairs. The article I read seemed to indicate the saved warranty money would go into turning popular options into standard equipment without raising the prices.