I agree, the market leader should show leadership rather than being a
follower. GM is clearly a follower in this one.
All they really did is to extend the powertrain portion of the warranty
to 5 years. Toyota, Honda, Ford and Hyundai are already there or more.
GM made theirs 5 years or 100,000 miles, but that high mileage limit
will only effect a very small number of buyers. Oddly enough, the high
mileage limit makes buying used off-rental vehicles more attractive.
Hertz, for example, usually sells their cars at 6-12 months old and with
20-25k miles on them.
Here is the updated news story:
Typically the market leader is a follower. Dell is the marker leader for
PC's, everyone else comes out with the new features sooner then when the
price drops Dell includes them and sells a whole bunch more.
Microsoft is the market leader copying ideas from Apple, linux, Firefox,
in July, Ford Motor Co. (F) extended its powertrain warranties by up to
two years on its 2007 Ford, Lincoln and Mercury models.
On Ford and Mercury vehicles, the powertrain warranty was raised to five
years or 60,000 miles, whichever comes first, up from the current
three-year, 36,000-mile bumper-to-bumper warranty.
Lincoln powertrain warranties were extended to six years or 70,000
miles, up from the previous four-year, 50,000-mile bumper-to-bumper
The warranties cover the engines and transmissions and are retroactive
to any 2007 models that already have been purchased, Ford said. The
automaker also offers similar guarantees on 2006 models still on the lots.
Still doesn't touch Hyundai's warranty (at least the original Hyundai
owner). As much as I love my Chevy...sad but true fact. Anyone got a
98 or newer Lumina they're willing to sell for $1500 or less? ;)
A friend of mine (a month ago) whittled her car choices down to a
Hyundai Elantra or a Saturn Ion. The end result? The Hyundai. Why?
Tons more standard features and warranty for (roughly) $3000 less.
Come on GM, pick up the pace!
Actually in every dealer meeting that I attended, for just about every brand
we sold, when I was in retail I suggest the manufacture include a 100,000
extended service plan be added to the base price of every model they sold.
Doing so would cost a relatively small amount, around $700, when one
considers historically less than one percent all extended warranties sold
ever pay out more than the cost of the plan and the deductible. The
extended warranty should only apply to the original owner.
Please expand on this; "warranty should only apply to original owner"
Is it no longer a GM product when the original owner sells the car ?
Is it now "an orphan product"?
I'm not baiting you.... its' just that this phrase often comes up in car sales.
All manufacturerss factor the warranty into the price of the vehicle.
So the full warranty's "paid for".
One owner or ten owners... if the car's warranteed for 50K miles
then the odometer reading should be the warranty cut-off.
It was a dumb idea. The warranty should apply to the product, not to
the owner. With the number of GM vehicles which first pass through
rental service before ending up with a retail customer Mike's idea is
If Hyundai can offer 100k, surely GM, Ford, and Chrysler should be able to.
Why not? Is the product good or not? I drive my cars 150k or more so it is
a factor in my decision. I do know a couple of people that bought Hyundai
over other brands because of ht warranty.
Even as a used buyer, the factory warranty is a selling point. Making used
GM cars popular keeps resale value up and helps in the long run. My boss
bought a Lexus. He traded in his Caddy for it. What will he buy next? He
says probably not a Caddy because of the resale value compared to the Lexus.
Las May be bought his wife anAvalon for that reason. Yes, thee is real
monetary reasons to offer long term satisfaction with the brand.
GM dealers also sell used cars. It is a bonus for them to be able to offer
the factory warranty. .
One reason US car makers are having problems is the thinking for selling a
car today, while the Japanese think long term and have made very loyal
customers in a much shorter time than the US makers ever have.
You forget to say in my opinion. GM and Ford sell more vehicles than any
import. Apparently a lot of buyers do not agree with your opinion that
imports are superior. I certainly don't agree, after a half dozen Lexus
V8s, that they are any better than domestics One reason I stopped buying
them was it cost too much to replace a Lexus with another ;)
I would prefer more time and less mileage (similar to Chrysler's 7-70
plan). But it's a positive overall. Probably most people will hit the
warranty expiration on time, not mileage. So this is effectively a 60K
mile warranty for most people.
How will "GM's plan" be a good fit for someone who experiences
a heated seat failure outside of the "bumper to bumper" warranty?
GM is simply offering a "powertrain" extended warranty. Most
people will be amazed at what "won't" be covered that they
"imagine" ought to be covered.
True, but it would be covered under the now longer bumper to bumper. Some
things should be covered for time, not miles anyway. Non moving parts are
usually not affected at all by the number of miles driven. If, say, the sun
visor fell off after only one year, but beyond 36,000 Miles, that seems
difficult to say you "drove it too far" so it broke.
This is nothing new. They had those kind of warranties for a while
back in the 80's I believe (we hated them). Plus, certain GM vehicles
already have the 5 year/100,000 klm warranties in our neck of the
woods. Pushing the warranty to 160,000 klms for five years will
mean almost nothing to the majority of uses as they will simply not
rack up that many miles in five years. Cavaliers have had the
extended powertrain warranty for a few years now, all the
Olds vehicles had it.
Powertrain warranties are usually hardly used anyway these days.
I can see it being useful in the case of transmissions, "and" the
intake gasket problems, but GM already warranties the 3.4
intake gaskets for 5 years, 100,000 kilometers and sometimes
even longer anyway. Yeah, it's a hidden style of warranty, but
it's there. GM probably feels comfortable that their recent changes
in engine design will mean that they will have very few repairs to
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