General Motors Cuts Powertrain Warranty from 100,000 to 60,000 Miles
Company Determined Long Coverage Not Significant Marketing Draw
A cornerstone of the Chevrolet and GMC brand’s advertising and marketing for the greater part of the last decade, General Motors is quietly shortening the powertrain warranty coverage for 2016 models from 100,000 miles to 60,000 miles, Automotive News reports. The chronological coverage period of five years remains unchanged. Following suit from Hyundai and Kia’s introduction of the 10-year, 100,000-mile powertrain warranty in the early 2000s, GM introduced its five-year, 100,000-mile powertrain coverage starting with the 2007 model year. This follows the revision of Buick and Cadillac’s powertrain warranty coverage from five years and 100,000 miles to six years and 70,000 miles. Ford, Toyota, and Honda all currently offer five-year, 60,000-mile powertrain warranties. Ram’s current powertrain coverage period is five years and 100,000 miles. Ram Trucks spokesman Nick Cappa said there are no immediate plans to change the brand’s powertrain warranty terms.
After doing customer research, GM said it determined the long powertrain mileage coverage period was not as compelling of a purchase consideration factor for buyers as originally thought. Likewise, the free maintenance offer included on the purchase of many new Chevrolet and GMC model, will be cut back from four visits to two. GM said many customers did not take advantage of the maintenance offer.
GM says any savings from the warranty change will be reinvested into features and technologies customers say they want, including improved in-car technology.
Source: Automotive News