GM slices warranties, free service on Chevy, GMC

[Warstud]

General Motors is dramatically cutting the warranty coverage on Chevrolet and GMC vehicles beginning with 2016 models.

Too, GM is halving those brands' free-maintenance programs.

Main reason: GM thinks nobody cared.

"Free scheduled maintenance and warranty coverage do not rank high as a reason to purchase a vehicle among buyers of non-luxury brands," said Steve Hill, GM North America vice president.

"Offers that enhance the sales and/or ownership experience are nice, but compelling product trumps them every day of the week," says Jack Nerad, executive editorial director and executive market analyst for Kelley Blue Book.

The new warranties will be five years or 60,000-miles on the powertrains, including courtesy transportation and roadside assistance, down from five years or 100,000 miles.

Free maintenance will drop to two visits within 24 months, from four.


Full Article>>
http://www.usatoday.com/story/money/cars...duced/70210660/

 

[wtd]

Ford's powertrain warranty is 5 years/60,000 miles and they don't seem to have a problem selling vehicles. That is one thing I didn't like when I bought my Mustang because chevy and Dodge both had better warranties. I think warranties are important and like having one as long as possible.

Wayne

 

[wemay]

Originally Posted By: wtd
Ford's powertrain warranty is 5 years/60,000 miles and they don't seem to have a problem selling vehicles. That is one thing I didn't like when I bought my Mustang because chevy and Dodge both had better warranties. I think warranties are important and like having one as long as possible.

Wayne


+1

 

[philipp10]

I guess they chose to ignore the example of Hyundai. They were in the ditch until they offered the 100k, 10 year warranty. Now they are a growing brand. I find it hard to believe GM would comment that budget buyers don't care about warranty. It's like there is something in the water over there.

 

[sciphi]

This got my attention. Especially since I've used that 100k mile powertrain warranty at 78k, 82k, and ~98k miles. It was sure nice to have somebody else wrenching on the car fixing a well-known issue (that's had certain cars get a 150k mile warranty on that specific part).

Powertrain warranty was a consideration for my purchase since I drive a lot, and wanted some assurance that if a manufacturing defect took 2.5 years and 78k miles to show up, that it would be covered.

This likely will affect my consideration for a new vehicle. Especially since GM's not as big on goodwill work as other brands are.

 

[Robenstein]

Dumb move...other brands will now advertise they stand behind their product and offer better warranties than "a leading domestic brand"

 

[OneEyeJack]

You can always by a FIAT like the Chrysler 300 and get a 100K warranty.

 

[fdcg27]

Old GM, new GM, what's the difference?
If anything, the less affluent buyers of more pedestrian vehicles place more value on things like free maintenance as well as a warranty that lasts as long as the payment book.
My guess is that GM was finding the extended warranties to be too costly, which bodes poorly for those buying GM vehicles beginning in 2016, especially those who don't have the funds to both make payments and pay for repairs that were previously a part of the purchase price of the vehicle contained in the extended warranty.
It's not as though GM products have much cred among the arbiters of vehicle reliability and durability, like (like it or not) CR.
This action demonstrates that GM learned little in its first reorganization. Maybe management's feet should have been held to the fire a little more and maybe more of the vast administrative structure should have been excised, as would have happened in a real bankruptcy unfettered by special provisions and with a new venture capital master taking charge.
The next bankruptcy probably won't have such corporate friendly terms.

 

[philipp10]

in GM's defense, they are just adjusting back to the typical warranty.

 

[JTK]

My thoughts are this is all about selling lucrative extended warranty contracts. Cutting the warranty because people don't care? I'm not buying that one.

 

[crazyoildude]

i thought Hyundai and kia were the only 2 with 10 years 100,000 mile power train warranties

 

[demarpaint]

Maybe they're afraid of the new tech biting them in the arse. Cut back the warranty, increase the bottom line, and cut down on potential warranty claims. And as JTK said there's always the lucrative extended warranty to sell at delivery time.

 

[zzyzzx]

This 100K mile warranty only last 5 years anyway. I mean not that many people put that kind of mileage in 5 years. 60K is probably more typical if you figure 1000 miles per month.

 

[userfriendly]

Good!! I don't want their 5W20 even if its free.

 

[eljefino]

Originally Posted By: crazyoildude
i thought Hyundai and kia were the only 2 with 10 years 100,000 mile power train warranties


Say 100k and people get stupid. Clever marketing.

My MIL would buy a 20 year old car with 50k and think it was awesome.

 

[LoneRanger]

The 300 is from the Daimler days at Chrysler, it is not a Fiat design.

 

[TiredTrucker]

If I was in the market and buying, this decision by GM would not really mean anything to me. While the 5/100K warranty was interesting, it wasn't part of my buying decision. 5/60K wouldn't bother me. And the free services? Never took advantage of them anyway. Not on my 2013 Siverado, nor will my new 2015 2500HD go in for the free oil change thing. Costs me more to drive over to the dealer and have it done than it does to go ahead and do it myself. And the peace of mind that the job is done right, especially hitting all the grease points. All that consumer fluff never really swayed me. I buy a vehicle I want, for the reasons I need it for, and it meets those needs. That is my primary concern.

 

[philipp10]

Originally Posted By: TiredTrucker
If I was in the market and buying, this decision by GM would not really mean anything to me. While the 5/100K warranty was interesting, it wasn't part of my buying decision. 5/60K wouldn't bother me. And the free services? Never took advantage of them anyway. Not on my 2013 Siverado, nor will my new 2015 2500HD go in for the free oil change thing. Costs me more to drive over to the dealer and have it done than it does to go ahead and do it myself. And the peace of mind that the job is done right, especially hitting all the grease points. All that consumer fluff never really swayed me. I buy a vehicle I want, for the reasons I need it for, and it meets those needs. That is my primary concern.


Totally agree with you. I don't want my dealer or anyone else touching my car. I can change my own oil faster than driving there and waiting in the showroom for my car to be done.

 

[supton]

I keep toying with a new econobox but after some "free" service on the last one I am not interested. I would rather go CPO with say3/36 warranty or so.

 

[firemachine69]

The 5 year, 100k km bumper to bumper coverage on my Mitsubishi is 99% of the reason I even considered it. Add the ten year, 160k km coverage on the power train that gave me peace of mind I won't turn a wrench on it for the next five years.

As opposed to our beater Toyota yaris. Thing is falling apart, but I'm just too cheap/lazy to get to it.