ViperSmith
03-13-2015, 06:58 PM
http://www.usatoday.com/story/money/cars/2015/03/12/gm-chevrolet-gmc-warranty-service-cut-reduced/70210660/
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.
Even so, "As part of a broader marketing message, long-term warranties can convey confidence in quality and durability that improve brand perception and contribute to long-term growth in sales, resale value and new-car transaction prices," says Eric Lyman, TrueCar top analyst and vice president of Industry Insights.
The new Chevy and GMC 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.
The changes, though a come-down for the Chevrolet and GMC brands, put them closer to what's normal in the industry, and are within GM's own array of warranty limits.
GM premium brand Buick, for example, has six-year/70,000-mile powertrain warranty. Its free maintenance provision is the same two visits in 24 months that Chevy and GMC adopted for 2016. Buick had 100,000-mile coverage and four free service visits until 2013.
Not a good sign to drop powertrain + maintenance, means they couldn't control costs with broken parts.
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.
Even so, "As part of a broader marketing message, long-term warranties can convey confidence in quality and durability that improve brand perception and contribute to long-term growth in sales, resale value and new-car transaction prices," says Eric Lyman, TrueCar top analyst and vice president of Industry Insights.
The new Chevy and GMC 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.
The changes, though a come-down for the Chevrolet and GMC brands, put them closer to what's normal in the industry, and are within GM's own array of warranty limits.
GM premium brand Buick, for example, has six-year/70,000-mile powertrain warranty. Its free maintenance provision is the same two visits in 24 months that Chevy and GMC adopted for 2016. Buick had 100,000-mile coverage and four free service visits until 2013.
Not a good sign to drop powertrain + maintenance, means they couldn't control costs with broken parts.