GM Cuts Powertrain Warranty by 40K Miles

GM Cuts Powertrain Warranty by 40K Miles

Starting with 2016 vehicles, GM is cutting down its powertrain warranty. 

All 2016 Chevy and GMC vehicles will go from having a 100,000-mile/5-year powertrain warranty to a 60,000-mile/5-year warranty, a loss of 40,000 miles. The 100,000-mile warranty, which has been in place for about a decade, was not a strong enough selling point according to the company. The drop in mileage brings GM’s warranty into line with its major competitors, like Ford and Toyota.

The company will also scale back its offer of two years of free maintenance, which includes oil changes and tire rotations on most Chevy, GMC and Buick models. The number of free visits will be brought down to two, from four, starting with 2016 vehicles.

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In 2007, then-CEO Rick Wagoner revealed the new 100,000-mile warranty as a way to close the perceieved quality gap between GM vehicles and their Japanese competitors. It is apparent now that it didn’t work out as planned.

“Through research, we have determined that when purchasing a new vehicle, included maintenance and warranty rank low on the list of reasons why consumers consider a particular brand over another,” reads the dealer memo which was sent out on Wednesday.

“As a result, we have benchmarked our competitors, reviewed our current offerings and have concluded the following modifications to align closely with our customers’ needs and expectations,” it said.

[Source: Auto News]

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