GM bumps up warranties to sell vehicles

[sc02grandam]

GM bumps up warranties to sell vehicles
Last Updated Wed, 06 Sep 2006 16:14:01 EDT
CBC News

General Motors Corp. bumped up the warranties on its vehicles on Wednesday as the automaker sought to move away from using heavy incentives to sell its products.

GM said it was increasing its powertrain warranty on all of its 2007 cars and light trucks to five years or 160,000 kilometres. The new warranty covers 900 engine, transmission and driveline components.

Mark LaNeve, vice-president of GM North America group, said the company is trying to combat a perception that the quality of its vehicles lags behind that of its top Japanese rivals.

"Because of deficits 20 years ago, we're living with a perceptual gap," he said. "Perception hasn't caught up to reality."

LaNeve said the move to promote the quality of the company's vehicles was meant to get away from using cash incentives.

The new warranties will be transferable when the vehicles go to the used-car market, and will include roadside assistance and courtesy-car services.

While GM said its new warranty was the best of any "full-line" vehicle make, Hyundai of Korea covers its powertrains for 10 years or 160,000 kilometres.

GM shares were up 73 cents at $31.17 US on the NYSE.

http://www.cbc.ca/story/money/national/2006/09/06/gm-warranty.html?ref=rss

[caraudiodave]

"Because of deficits 20 years ago, we're living with a perceptual gap," he said. "Perception hasn't caught up to reality."

hmmm so i guess that gasket issue was from 20 years ago? or maybe we were imagining it.


the warranty is good, but are they offering it in the US as well? it only gives Kms.

[2002GT]

i would think 10year 100,000?

[Mike Jung]

...are they offering it in the US as well? it only gives Kms.
GM extends warranties

Sep. 6, 2006. 02:51 PM
TOM KRISHER
ASSOCIATED/CANADIAN PRESS


DETROIT — General Motors Corp. (NYSE: GM) has increased the powertrain warranty on all of its 2007 passenger vehicles to five years or 100,000 miles (160,000 kilometres), citing confidence in the quality of its vehicles.
The extension, from three years or 36,000 miles, is effective immediately and covers 900 engine, transmission and driveline components, Mark LaNeve, GM’s North America group vice-president, said Wednesday.

The new warranty is part of a strategy to sell the value of GM products as opposed to pushing deals laden with cash incentives, LaNeve said.

The automaker also is hoping to erase what it says is a perceived quality gap between its vehicles and those of its main Japanese rivals.

LaNeve said that by both internal and external measures, such as studies by J.D. Power & Associates, the company has closed the quality gap.

“Because of deficits 20 years ago, we’re living with a perceptual gap. Perception hasn’t caught up to reality,” LaNeve said.

The new warranties, accompanied by GM’s roadside assistance and courtesy-car programs, are transferable when vehicles enter the used-car market.

GM said the powertrain warranties are the best of any “full-line manufacturer.” Korean automaker Hyundai guarantees its powertrains for 10 years or 100,000 miles (160,000 kilometres).

Wednesday’s move “is the next step in GM’s North American turnaround plan and follows from our successful 10-year focus on achieving industry-leading quality and durability for our cars and trucks,” stated GM Canada president Arturo Elias.

GM’s warranties on non-powertrain components are unchanged: four years or 80,000 kilometres for Buick, Cadillac, Hummer and Saab models, and three years or 60,000 kilometres for Chevrolet, GMC, Pontiac and Saturn vehicles.

In July, Ford Motor Co. (NYSE:F) extended its powertrain warranties by up to two years on 2007 models.

On Ford and Mercury vehicles, the powertrain warranty was raised to five years or 60,000 miles (100,000 kilometres), while Lincoln powertrain warranties were extended to six years.

LaNeve said GM picked five years and 100,000 miles because that’s the normal length of time that owners keep cars and trucks.

He would not disclose the cost of the warranties, but said GM’s quality has improved to the point where it’s cost-effective to offer such guarantees.
I sure hope it really is cost-effective, for GM to offer such guarantees.

[Malaclypse]

I'm sure GM will write in exclusions for certain emissions components and gaskets.

That and its for only a few products... likely the Ecotecs since they just won't die.

[Braves299]

Is everything that GM does criticized on this site? DAMN!

You guys have been bitching, saying they need to bump up their warranty. Now that they do it, you complain and moan some more?

[Exodus]

5 years or 100,000 miles which ever comes first is like having
200 anytime mins and unlimited night and weekend mins. on a cell phone plan.
Useless #'s that are meant to make the consumer believe like their getting a great deal when they really are not. Unless one drives alot w/in 5 years but I think they are a minority, b/c the majority DOES NOT drive 100,000 miles in 5 years.
Thats why people bash GM because they are the typical business people that run a huge corporation meant for one and only one thing, that they make out in the end.

[Braves299]

5 years or 100,000 miles which ever comes first is like having
200 anytime mins and unlimited night and weekend mins. on a cell phone plan.
Useless #'s that are meant to make the consumer believe like their getting a great deal when they really are not. Unless one drives alot w/in 5 years but I think they are a minority, b/c the majority DOES NOT drive 100,000 miles in 5 years.
Thats why people bash GM because they are the typical business people that run a huge corporation meant for one and only one thing, that they make out in the end.

I'd be a LOT of people drive 100,000 in 5 years.

[Vintalage]

Lets see how well this translates to sales. I'm still not confident with their long-term reliabilty.

[bigbenSC]

I think this is a good idea, GM's warranty length was getting behind the industry average.

[tenspeed]

With the length of car loans hitting six years, it's nice to know that your major stuff is covered for five instead of three years.

[MSJHWT]

5 years or 100,000 miles which ever comes first is like having
200 anytime mins and unlimited night and weekend mins. on a cell phone plan.
Useless #'s that are meant to make the consumer believe like their getting a great deal when they really are not. Unless one drives alot w/in 5 years but I think they are a minority, b/c the majority DOES NOT drive 100,000 miles in 5 years.
Thats why people bash GM because they are the typical business people that run a huge corporation meant for one and only one thing, that they make out in the end.
Its better than 3/36 isn't it?

[Y2KGA]

5 years or 100,000 miles which ever comes first is like having
200 anytime mins and unlimited night and weekend mins. on a cell phone plan.
Useless #'s that are meant to make the consumer believe like their getting a great deal when they really are not. Unless one drives alot w/in 5 years but I think they are a minority, b/c the majority DOES NOT drive 100,000 miles in 5 years.
Thats why people bash GM because they are the typical business people that run a huge corporation meant for one and only one thing, that they make out in the end.

On a positive note it will lower the cost of an extended warranty.

[Cormaster]

This is a good idea no doubt, but why is only the powertrain covered? Didn't GM have a 3 year, 36,000 mile bumper to bumper warrenty before? Do they still have that or did they just drop that all together and go with this powertrain warrenty? I am just curious because I'd hate to be the owner of a new G6 who's power window breaks in a month and they tell him "well thats not part of the powertrain so sorry your S.O.L"

[Malaclypse]

This is a good idea no doubt, but why is only the powertrain covered? Didn't GM have a 3 year, 36,000 mile bumper to bumper warrenty before? Do they still have that or did they just drop that all together and go with this powertrain warrenty? I am just curious because I'd hate to be the owner of a new G6 who's power window breaks in a month and they tell him "well thats not part of the powertrain so sorry your S.O.L"

There's still the bumper to bumper warranty for 3/36k. GM just tacked on a warranty on engine/transmission for 5/100k.

Unfortunately you're more likely to suffer a problem with parts that won't be covered by the powertrain warranty before your engine or transmission explodes. So an extended warranty is still a very good idea.

[crazypontiac03]

5 years or 100,000 miles which ever comes first is like having
200 anytime mins and unlimited night and weekend mins. on a cell phone plan.
Useless #'s that are meant to make the consumer believe like their getting a great deal when they really are not. Unless one drives alot w/in 5 years but I think they are a minority, b/c the majority DOES NOT drive 100,000 miles in 5 years.
Thats why people bash GM because they are the typical business people that run a huge corporation meant for one and only one thing, that they make out in the end.


Actually, The Majority of people do live farther away from there jobs etc then 10 years ago. So Yes people can and do drive 100k in 5year's.

[tomh]

soulds good.. and if i had the money id have a g6 tomorrow :)

and fyi i put on about 30,000 miles a year

[Undersexed]

I don't know any people under the age of 60-70 that put LESS than 100K on a car in under 5 years actually - my sis's 04 F150 has over 130K already, my uncle's 03 super duty has over 275K and I've put 35K on my car just in the past 11 months... People are in their cars almost all the time nowdays and if it's low mileage, it's usually because they live in the city, close to where they work and in reality, the engine has run almost just as much, but because you're stuck in traffic for one to two hours everyday, your not racking up miles, but the usage is still there...

[Hurricane]

Thats why people bash GM because they are the typical business people that run a huge corporation meant for one and only one thing, that they make out in the end.

Imagine that!!

Companies are in business to make money! What a concept!

I thin this is more of a move to try and retain current customers rather than atract new customers. I'm certainly not going to go out and buy a Kia just because it has a long warranty. And I certainly don't think this is going to change the minds of anyone who thinks that GM puts out unreliable products.

And yes, there are a tonne of other things that can go wrong in the first 5 years, it's typically the drivetrain that ends up costing big $$ to repair when something does go wrong.

[Exodus]

Imagine that!!

Companies are in business to make money! What a concept!

I thin this is more of a move to try and retain current customers rather than atract new customers. I'm certainly not going to go out and buy a Kia just because it has a long warranty. And I certainly don't think this is going to change the minds of anyone who thinks that GM puts out unreliable products.

And yes, there are a tonne of other things that can go wrong in the first 5 years, it's typically the drivetrain that ends up costing big $$ to repair when something does go wrong.

Wow your a smart A$$. People are entitled to their opinion you tool.
Guess im not one of the GM psychophants that dont mind getting it up their rear everytime they make something sound so good to be true-b/c it is.
I dont make money by getting it from the tree in my back yard, so I am quite scepticle about situations from that are a new fad. Time will tell my little pretty.

[GregFarz78]

5 years or 100,000 miles which ever comes first is like having
200 anytime mins and unlimited night and weekend mins. on a cell phone plan.
Useless #'s that are meant to make the consumer believe like their getting a great deal when they really are not. Unless one drives alot w/in 5 years but I think they are a minority, b/c the majority DOES NOT drive 100,000 miles in 5 years.
Thats why people bash GM because they are the typical business people that run a huge corporation meant for one and only one thing, that they make out in the end.

uuuh its not hard to drive 100k in 5 years. Its a step in the right direction their 3/36k warranty was a joke and the worst in the industry...most people dont keep a car for more than 5 years these days anyway. I still dont have faith in their long term reliability overall, and they need to do something about awful resale value

[Hurricane]

Wow your a smart A$$. People are entitled to their opinion you tool.


Oh relax! I agree with you.

It was more a poke at people who figure corporations should put themselves at a disadvantage just to please customers. It's comments like people saying that the new Camaro shouldn;t cost more than $25-26K max.

I think the only people that are going to be swayed by this announcement are the psychophants (nice choice of words by the way). Most people who wouldn't buy a GM (or any other brand) due to a lack of reliability (real or perceived), won't change their mind just because of a longer warranty.

As yes, I am a smart a$$. It's part of my charm.

[b_massey02]

I've had my 01 GT since 04 and I alone have put about 50,000 miles on it, and it had 73,000 when i bought it in 04.

[Exodus]

Oh relax! I agree with you.

It was more a poke at people who figure corporations should put themselves at a disadvantage just to please customers. It's comments like people saying that the new Camaro shouldn;t cost more than $25-26K max.

I think the only people that are going to be swayed by this announcement are the psychophants (nice choice of words by the way). Most people who wouldn't buy a GM (or any other brand) due to a lack of reliability (real or perceived), won't change their mind just because of a longer warranty.

As yes, I am a smart a$$. It's part of my charm.

Im more of a docile creature but can be a smart a$$ too at times. It just irks me when people post things up on the internet and dont like the plethora of opinions they get, its inevitable , not everybody can agree. My apologies to you.
Anyway it suprises me that people can drive 20,000 plus miles a year, geeze im investing in gas stocks next year.

[Mike Jung]

...geeze im investing in gas stocks next year.
Please Note: The Energy Sector is higher risk, & is cyclical in nature (it goes up & down).

For example:
My Energy sector mutual fund is a little in the red at the moment (it is actually down for the year alittle, since last year this time).

But that still doesn't stop me from having 26% of my holdings in the Engery Sector.
(& almost 15% of my retirement holdings are also in the Energy sector.)


They say, that you should use the Energy sector for the long term, & hopefully growth will happen.

[Mike3800]

A step in the right direction. It's about time. They are slowly learning that the "GM" name is no longer going to carry them and they can just drive up prices and expect to keep selling cars in great volume. The have to give people alot of bang for the buck not just talk about improved reliability etc...

This is a good good move for them.

Probbably the same or similar warranty as Hyundai, there are things not covered by their warranty as well, but, most of the things not covered are considered normal wear and tear or not needed to keep the car running ex. the radio is not 10 year 100K miles.