09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
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09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
Many people have been calling for such a move here.
I think it is a great move for Corporate and Brand image.... hopefully it won't affect consumer cost much, if any.
We'll have to wait a bit for the specifics, and see if it is truely "industry leading".
http://money.cnn.com/2006/09/06/auto...ties/index.htm
I think it is a great move for Corporate and Brand image.... hopefully it won't affect consumer cost much, if any.
We'll have to wait a bit for the specifics, and see if it is truely "industry leading".
http://money.cnn.com/2006/09/06/auto...ties/index.htm
Originally Posted by CNN-Money.com
GM to offer longer warranties
Source says GM to announce 'industry leading' extended warranties in an effort to stop slide in market share to import brands.
September 6 2006: 10:26 AM EDT
NEW YORK (CNNMoney.com) -- General Motors Corp., struggling to stop its continued market share losses and close the perception of worse quality with import brands, plans to announce an "industry leading" warranty offer Wednesday, according to someone familiar with company plans.
The company has announced that Chairman and CEO Rick Wagoner will announce "a major consumer initiative" at 1 p.m. ET Wednesday.
The company has suffered with customer perception of producing lesser quality cars than many import brands, particularly from Japan, even as some measures have shown that the quality gap has been closing faster than perceptions.
The latest J.D. Power Dependability study, which surveyed 48,000 owners of 2003 model-year vehicles to see how the cars fared three years after purchase put two GM brands, Buick and Cadillac, No. 3 and 4, respectively, in quality, ahead of brands such as Toyota, Honda and BMW. Lexus, the luxury brand of Toyota Motor, finished No. 1.
The lower perceived quality has caused GM to offer larger cash-back offers or other costly incentives to hang onto declining market share. But offering a longer warranty will also cost the company money as it struggles to trim losses from its core North American auto operations.
GM currently offers a 36-month, 36,000 mile warranty on most of its vehicles. Some Korean automakers such as Hyundai, which has also faced consumer perception problems, offers a 5-year, 60,000 warranty on just about all parts of its vehicles, along with a 10-year, 100,000 mile warranty on its powertrain.
Source says GM to announce 'industry leading' extended warranties in an effort to stop slide in market share to import brands.
September 6 2006: 10:26 AM EDT
NEW YORK (CNNMoney.com) -- General Motors Corp., struggling to stop its continued market share losses and close the perception of worse quality with import brands, plans to announce an "industry leading" warranty offer Wednesday, according to someone familiar with company plans.
The company has announced that Chairman and CEO Rick Wagoner will announce "a major consumer initiative" at 1 p.m. ET Wednesday.
The company has suffered with customer perception of producing lesser quality cars than many import brands, particularly from Japan, even as some measures have shown that the quality gap has been closing faster than perceptions.
The latest J.D. Power Dependability study, which surveyed 48,000 owners of 2003 model-year vehicles to see how the cars fared three years after purchase put two GM brands, Buick and Cadillac, No. 3 and 4, respectively, in quality, ahead of brands such as Toyota, Honda and BMW. Lexus, the luxury brand of Toyota Motor, finished No. 1.
The lower perceived quality has caused GM to offer larger cash-back offers or other costly incentives to hang onto declining market share. But offering a longer warranty will also cost the company money as it struggles to trim losses from its core North American auto operations.
GM currently offers a 36-month, 36,000 mile warranty on most of its vehicles. Some Korean automakers such as Hyundai, which has also faced consumer perception problems, offers a 5-year, 60,000 warranty on just about all parts of its vehicles, along with a 10-year, 100,000 mile warranty on its powertrain.
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From: Indianapolis, IN
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
We just got an internal notice that Wagoner would be making "a significant consumer announcement" this afternoon. I suppose this is what it is referring to. 
This is potentially great news.
It says industry leading. Does that mean it will top Hyundai's term? Or, maybe it won't be quite as long/as many miles, but will not be shady like the Hyundai warranty (not transferrable, deductible, etc.).
I'm actually pretty excited to see this!
Where is the :bitingfingernails: smilie when you need it?
This is potentially great news.
It says industry leading. Does that mean it will top Hyundai's term? Or, maybe it won't be quite as long/as many miles, but will not be shady like the Hyundai warranty (not transferrable, deductible, etc.).
I'm actually pretty excited to see this!
Where is the :bitingfingernails: smilie when you need it?
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Joined: Jul 2001
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From: Milton, FL
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
this should be interesting, just look what an extended warranty did for hyundai.
nothin like putting money where your mouth is to drive the point home.
nothin like putting money where your mouth is to drive the point home.
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From: Pewee Valley, KY
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
I guess GM got tired of seeing the Ford ads stating they had the best warrenty of any full line manufacturer. I think the loudest proponent on this board for this would be Threxx. Maybe we can get him to buy, not lease, a GM car after this.
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From: Memphis
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
I'm extremely excited to hear this. Not just on a personal level but on an overall level because I think this will lead to some great things for GM. It might not even **** off their stock holders if they see the fruits of their decision soon enough. I mean their service departments won't see any decreased income for the first 3 years anyway since all of the new extended warranty vehicles would be under warranty regardless anyway. So maybe within the 3 year period GM will have seen enough of an improvement in sales and (more importantly) second chance customers (people who swore off GM sometime in the last decade due to a previous bad experience), to make up for it.
Here's the one very important key issue though: service departments that make the warranty worthwhile. If I have a warranty but the dealer can't seem to get anything taken care of without multiple trips and lots of bitching on my part, then it's worthless to me.
Here's the one very important key issue though: service departments that make the warranty worthwhile. If I have a warranty but the dealer can't seem to get anything taken care of without multiple trips and lots of bitching on my part, then it's worthless to me.
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From: Memphis
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
Originally Posted by Z28x
good move, wonder what they will be? 4/50 for Chevy/Pontiac/Saturn/GMC 5/60 for Caddy/Buick/Hummer?
At a minimum they better be 5yr/60 B2B for the lower brands w/ 7yr 100k powertrain, and then a step up from that for the lux brands.
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
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From: Albany, NY
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
Originally Posted by Threxx
That's not industry leading by any measure.
At a minimum they better be 5yr/60 B2B for the lower brands w/ 7yr 100k powertrain, and then a step up from that for the lux brands.
At a minimum they better be 5yr/60 B2B for the lower brands w/ 7yr 100k powertrain, and then a step up from that for the lux brands.
) I hear for someone buying a Kia/Hyundia is the warranty.
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From: Sterling Heights, MI
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
Just announced: Bumper-to-Bumper warranties stay the same, powertrain warranties are now 5 years or 100,000 miles fully transferrable. The "fully transferrable with no deductable" part is what makes it "industry leading"--at least, powertrain-wise.
Not exactly the kind of earth-shattering warranty I was expecting. I mean really, the 3y-36k warranty is so rediculously outdated....how much more would it cost to go 4/50 across the lineup????
http://media.gm.com/servlet/GatewayS...=2&docid=28433
Not exactly the kind of earth-shattering warranty I was expecting. I mean really, the 3y-36k warranty is so rediculously outdated....how much more would it cost to go 4/50 across the lineup????
http://media.gm.com/servlet/GatewayS...=2&docid=28433
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From: La Porte City, Iowa
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
A step in the right direction, but I personally don't think this goes far enough. A 4/50 bumper to bumper with the 5/100 powertrain would make a much louder statement.....all this says is that the powertrains are improved, not the quality of the entire vehicle.
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From: Roseville, MI, USA
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
Originally Posted by Z28Wilson
Just announced: Bumper-to-Bumper warranties stay the same, powertrain warranties are now 5 years or 100,000 miles fully transferrable. The "fully transferrable with no deductable" part is what makes it "industry leading"--at least, powertrain-wise.
Not exactly the kind of earth-shattering warranty I was expecting. I mean really, the 3y-36k warranty is so rediculously outdated....how much more would it cost to go 4/50 across the lineup????
http://media.gm.com/servlet/GatewayS...=2&docid=28433
Not exactly the kind of earth-shattering warranty I was expecting. I mean really, the 3y-36k warranty is so rediculously outdated....how much more would it cost to go 4/50 across the lineup????
http://media.gm.com/servlet/GatewayS...=2&docid=28433
I'm with Guy. I bet the Saturn Aura absolutely destroys the competition from this point forward.
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Posts: 10,285
From: Albany, NY
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
Originally Posted by Z28Wilson
Just announced: Bumper-to-Bumper warranties stay the same, powertrain warranties are now 5 years or 100,000 miles fully transferrable. The "fully transferrable with no deductable" part is what makes it "industry leading"--at least, powertrain-wise.
Not exactly the kind of earth-shattering warranty I was expecting. I mean really, the 3y-36k warranty is so rediculously outdated....how much more would it cost to go 4/50 across the lineup????
http://media.gm.com/servlet/GatewayS...=2&docid=28433
Not exactly the kind of earth-shattering warranty I was expecting. I mean really, the 3y-36k warranty is so rediculously outdated....how much more would it cost to go 4/50 across the lineup????
http://media.gm.com/servlet/GatewayS...=2&docid=28433
100,000 transferable powertrain warranty should be a big boost to GMs high volume cars. Kia/Hyundia warranties are not transferable. The 3/36 really need to be higher. I'm at 2 years this month on my colorado and I already have 33,000mi. I don't care if the 3 year part stays the same, just raise the milage to 50,000. In the 21st century most people drive 15,000 on avg.
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Posts: 3,650
From: Indianapolis, IN
Re: 09/06/06, 1:00PM: GM to announce "Industry Leading" warranties.
Well, the Powertrain warranty is great news (though I think 6 years would be better). But I agree, the B2B warranty should have been pushed to 4/60 or 5/60 across the board. Some, of course, are already at 4/50 (Caddy, Buick, Saab, I think).
I'm thinking a lot of the advertising will just focus on that 100k mile number, just like the Hyundai warranty, even though that is only the powertrain. Of course, the powertrain warranty is the most important part, IMO (a broken glovebox latch isn't going to leave you stranded and/or FORCE you to fix it before you can drive again). Hyundai ads make a big deal of the 100k mile warranty, and the GM one has the advantage of being transferrable and having no deductible. I think these warranties will get the attention of many buyers.
I'm still excited about it, but I admit I'd hoped for just a bit more.
I'm thinking a lot of the advertising will just focus on that 100k mile number, just like the Hyundai warranty, even though that is only the powertrain. Of course, the powertrain warranty is the most important part, IMO (a broken glovebox latch isn't going to leave you stranded and/or FORCE you to fix it before you can drive again). Hyundai ads make a big deal of the 100k mile warranty, and the GM one has the advantage of being transferrable and having no deductible. I think these warranties will get the attention of many buyers.
I'm still excited about it, but I admit I'd hoped for just a bit more.