How GM could crush the Koreans and Chinese cars before then get too big
#1
How GM could crush the Koreans and Chinese cars before then get too big
100,000mi. warranty. This is all companies like Kia and Hyudai have.
The #1 reason people buy these cars is for the warranty.
I hear who cares if it breaks, it has a 10 year 100,000 warraty. For that price with that warranty it is worth the risk.
If one domestic and one import (like Honda) started this the Koreans would have know were to go. any warranty over 100K seems like too foolish of a risk.
at least go 75,000 since most people that buy brand new cars seem to trade in or sell before then.
The #1 reason people buy these cars is for the warranty.
I hear who cares if it breaks, it has a 10 year 100,000 warraty. For that price with that warranty it is worth the risk.
If one domestic and one import (like Honda) started this the Koreans would have know were to go. any warranty over 100K seems like too foolish of a risk.
at least go 75,000 since most people that buy brand new cars seem to trade in or sell before then.
Last edited by Z28x; 02-14-2005 at 09:11 PM.
#2
Re: How GM could crush the Koreans and Chinese cars before then get too big
Originally Posted by Z28x
100,000mi. warranty. This is all companies like Kia and Hyudai have.
any warranty over 100K seems like too foolish of a risk.
at least go 75,000 since most people that buy brand new cars seem to trade in or sell before then.
any warranty over 100K seems like too foolish of a risk.
at least go 75,000 since most people that buy brand new cars seem to trade in or sell before then.
When you say "GM", you're talking about Chevy, Pontiac, Saab, Cadillac, Buick, etc.
Hyundai is....well....just hyundai.......right?
If GM started making higher quality cars that people perceived to be of higher value than their competition, maybe they'd sell more of those cars.....I think the cobalt is a good start.
It's tough to compete with child labor and unlimited bodies to replace fired/killed workers.
#3
Re: How GM could crush the Koreans and Chinese cars before then get too big
Originally Posted by TurboSedan
I agree that if GM where to offer 100K mile powertrain warranties on all their cars, they'd sell a ****load more. It's just that they're about a thousand times bigger a company than hyundai, spanning multiple car brands. To warranty every single car on every single brand would probably cost them millions. I'm not sure who owns Hyundai, but if they're a self-sufficient company, ya gotta give 'em props for their marketing skillz.
When you say "GM", you're talking about Chevy, Pontiac, Saab, Cadillac, Buick, etc.
Hyundai is....well....just hyundai.......right?
If GM started making higher quality cars that people perceived to be of higher value than their competition, maybe they'd sell more of those cars.....I think the cobalt is a good start.
It's tough to compete with child labor and unlimited bodies to replace fired/killed workers.
When you say "GM", you're talking about Chevy, Pontiac, Saab, Cadillac, Buick, etc.
Hyundai is....well....just hyundai.......right?
If GM started making higher quality cars that people perceived to be of higher value than their competition, maybe they'd sell more of those cars.....I think the cobalt is a good start.
It's tough to compete with child labor and unlimited bodies to replace fired/killed workers.
#4
Re: How GM could crush the Koreans and Chinese cars before then get too big
Originally Posted by TurboSedan
Hyundai is....well....just hyundai.......right?
To the original post, it's not just 100,000 mile warranties that draws in the buyers; it's inexpensive prices. All else being equal (at least in the mind of the buyer), they'll take the $2000 cheaper Chery over a Chevy.
#5
Re: How GM could crush the Koreans and Chinese cars before then get too big
Originally Posted by TurboSedan
I agree that if GM where to offer 100K mile powertrain warranties on all their cars, they'd sell a ****load more. It's just that they're about a thousand times bigger a company than hyundai, spanning multiple car brands. To warranty every single car on every single brand would probably cost them millions. I'm not sure who owns Hyundai, but if they're a self-sufficient company, ya gotta give 'em props for their marketing skillz.
#6
Re: How GM could crush the Koreans and Chinese cars before then get too big
At the very, very least, GM should have a 3 yr / 45 thousand mile warranty right now.
The long warranty arguement goes in two directions... some say if you stand behind your product, it must be a quality product... others say if you have to warranty it that long, it must be a P.O.S. and break all the time...
I am sure that if GM did that, certain people would b!tch and moan that GM is crap and that's why they did it... because some people think anything GM tries is worthless...
I'm all for baby steps though... make the current warranties 3 yr/ 45k miles... at leats it's a start. More and more people drive their cars more, and the extra 3k milage per year would go a long way for a lot of repeat buyers (people who buy a new car every 2-3 years).... the customers GM *WANTS* to keep coming back.
The long warranty arguement goes in two directions... some say if you stand behind your product, it must be a quality product... others say if you have to warranty it that long, it must be a P.O.S. and break all the time...
I am sure that if GM did that, certain people would b!tch and moan that GM is crap and that's why they did it... because some people think anything GM tries is worthless...
I'm all for baby steps though... make the current warranties 3 yr/ 45k miles... at leats it's a start. More and more people drive their cars more, and the extra 3k milage per year would go a long way for a lot of repeat buyers (people who buy a new car every 2-3 years).... the customers GM *WANTS* to keep coming back.
#7
Re: How GM could crush the Koreans and Chinese cars before then get too big
GM currently has their 5year/60,000mi on the Aveo AND Cobalt. What a good starting point. New Models with an improved warranty. With the Cobalts improvement in quality dealers can also have another edge to sell to customers. GM hasnt been leading in the warranty department and it's time to pick up the slack.
I think the baby steps have started, and will continue as models are replaced and new models come out. Perhaps the HRR will get the longer warranty as well (it should).
I wonder what Lutz thinks about all this...
I think the baby steps have started, and will continue as models are replaced and new models come out. Perhaps the HRR will get the longer warranty as well (it should).
I wonder what Lutz thinks about all this...
#8
Re: How GM could crush the Koreans and Chinese cars before then get too big
i was just about to post a thread about this...
i agree, i think they need to start lowering msrps, cutting back rebates (gradually of course), and offering longer warranties
i also, think it would be a great way to sell more cars
they seriously seem like they are lacking in the warranty dept.
i agree, i think they need to start lowering msrps, cutting back rebates (gradually of course), and offering longer warranties
i also, think it would be a great way to sell more cars
they seriously seem like they are lacking in the warranty dept.
#9
Re: How GM could crush the Koreans and Chinese cars before then get too big
Actually I disagree.
Take the computer industry for example. Computers today cost 1/3 of what they did a few years ago. Almost all new computers have a limited 1 year warranty and now you see fewer people opting to buy extended warranties. The reasons for this range from better quality to technology advancing faster than the computers wear out. The bottom line is what was once a big ticket purchase for most consumers has now become a disposible device.
Cars today cost more than what some people paid for their homes 20 years ago. (In some regions as recent as 10 years ago.) If the automotive industry were to model the computer industy, car dealerships could end up looking like Best Buy. Make cars cheap, dependable and affordable and you'd have people buying new cars more frequently. There's no reason this couldn't be done, the automotive industry just choses not to for several reasons. One being the stranglehold labor unions have on them. Is there any reason that 90% of the manufacturing process can't be fully automated, thus reducing production costs and thus reducing the cost to the consumer?
I know what you're thinking... way out there huh? Heck, I can't always have brilliant ideas.
Take the computer industry for example. Computers today cost 1/3 of what they did a few years ago. Almost all new computers have a limited 1 year warranty and now you see fewer people opting to buy extended warranties. The reasons for this range from better quality to technology advancing faster than the computers wear out. The bottom line is what was once a big ticket purchase for most consumers has now become a disposible device.
Cars today cost more than what some people paid for their homes 20 years ago. (In some regions as recent as 10 years ago.) If the automotive industry were to model the computer industy, car dealerships could end up looking like Best Buy. Make cars cheap, dependable and affordable and you'd have people buying new cars more frequently. There's no reason this couldn't be done, the automotive industry just choses not to for several reasons. One being the stranglehold labor unions have on them. Is there any reason that 90% of the manufacturing process can't be fully automated, thus reducing production costs and thus reducing the cost to the consumer?
I know what you're thinking... way out there huh? Heck, I can't always have brilliant ideas.
#10
Re: How GM could crush the Koreans and Chinese cars before then get too big
Originally Posted by jg95z28
Actually I disagree.
Take the computer industry for example. Computers today cost 1/3 of what they did a few years ago. Almost all new computers have a limited 1 year warranty and now you see fewer people opting to buy extended warranties. The reasons for this range from better quality to technology advancing faster than the computers wear out. The bottom line is what was once a big ticket purchase for most consumers has now become a disposible device.
Cars today cost more than what some people paid for their homes 20 years ago. (In some regions as recent as 10 years ago.) If the automotive industry were to model the computer industy, car dealerships could end up looking like Best Buy. Make cars cheap, dependable and affordable and you'd have people buying new cars more frequently. There's no reason this couldn't be done, the automotive industry just choses not to for several reasons. One being the stranglehold labor unions have on them. Is there any reason that 90% of the manufacturing process can't be fully automated, thus reducing production costs and thus reducing the cost to the consumer?
I know what you're thinking... way out there huh? Heck, I can't always have brilliant ideas.
Take the computer industry for example. Computers today cost 1/3 of what they did a few years ago. Almost all new computers have a limited 1 year warranty and now you see fewer people opting to buy extended warranties. The reasons for this range from better quality to technology advancing faster than the computers wear out. The bottom line is what was once a big ticket purchase for most consumers has now become a disposible device.
Cars today cost more than what some people paid for their homes 20 years ago. (In some regions as recent as 10 years ago.) If the automotive industry were to model the computer industy, car dealerships could end up looking like Best Buy. Make cars cheap, dependable and affordable and you'd have people buying new cars more frequently. There's no reason this couldn't be done, the automotive industry just choses not to for several reasons. One being the stranglehold labor unions have on them. Is there any reason that 90% of the manufacturing process can't be fully automated, thus reducing production costs and thus reducing the cost to the consumer?
I know what you're thinking... way out there huh? Heck, I can't always have brilliant ideas.
#11
Re: How GM could crush the Koreans and Chinese cars before then get too big
Originally Posted by Gloveperson
Buick makes the most reliable cars in the world right now according to Consumer Reports..and yes that is higher than Toyoto.
Buick=GM in case anyone forgot.
I think the warranty is a good idea..GM has gotten immensly better than it used to be..and in a lot of cases is better than the imports (ESPECIALLY the Germans) and people still think they are **** because people group American car companies as one..and since Ford and Dodge is still pretty poor..GM will have a bad rap.
Buick=GM in case anyone forgot.
I think the warranty is a good idea..GM has gotten immensly better than it used to be..and in a lot of cases is better than the imports (ESPECIALLY the Germans) and people still think they are **** because people group American car companies as one..and since Ford and Dodge is still pretty poor..GM will have a bad rap.
#12
Re: How GM could crush the Koreans and Chinese cars before then get too big
Originally Posted by Z28x
100,000mi. warranty. This is all companies like Kia and Hyudai have.
The #1 reason people buy these cars is for the warranty.
I hear who cares if it breaks, it has a 10 year 100,000 warraty. For that price with that warranty it is worth the risk.
If one domestic and one import (like Honda) started this the Koreans would have know were to go. any warranty over 100K seems like too foolish of a risk.
at least go 75,000 since most people that buy brand new cars seem to trade in or sell before then.
The #1 reason people buy these cars is for the warranty.
I hear who cares if it breaks, it has a 10 year 100,000 warraty. For that price with that warranty it is worth the risk.
If one domestic and one import (like Honda) started this the Koreans would have know were to go. any warranty over 100K seems like too foolish of a risk.
at least go 75,000 since most people that buy brand new cars seem to trade in or sell before then.
The number #1 reason folks buy vehicles is not the warranty terms, but emotional reasons. #2 is cost and how it fits a budget. If warranty terms were that important to most, extended service contracts would be a far larger percentage of delivery add-ons.
Here's Hyundai's warranty according to Hyundai... what's really spelled out would be in a warranty booklet, not a glossy overview. Words like "nearly" and "most" end up being very large in meaning and effect in the long run...:
5 YEAR 60,00 MILE
BUMPER-TO-BUMPER COVERAGE
Covers nearly every new vehicle component.
Following components covered for time and mileage limits indicated:
Radio And Sound Systems (i.e. radio, cassette tape drive mechanism, and compact disc player):
3 years / 36,000 miles
Paint: 3 years/ 36,000 miles
Battery: 3 years / unlimited miles (100% covered 2 years / unlimited miles; after 2 years and within 3 years, 25% cost of battery and 100% labor cost covered)
Air Conditioner Refrigerant Charge:
1 year / unlimited miles
Adjustments: 1 year / 12,000 miles
Wear Items; 1 year / 12,000 miles ( e.g. belts, brake pads & linings, clutch linings, filters, wiper blades, bulbs, fuses)
10 YEAR 100,00 MILE
POWERTRAIN PROTECTION
Covers most engine and transaxle components
Coverage applies to Original Owner only effective 2004 Model Year. On 1999-2003 Model Years, coverage applies to Original Owner and immediate family members (i.e. wife, husband, daughter, son, stepdaughter, stepson). Excludes coverage for vehicles placed in commercial use (i.e. taxi, route delivery, delivery service, rental, etc.).
Last edited by 1fastdog; 02-15-2005 at 02:18 PM.
#13
Re: How GM could crush the Koreans and Chinese cars before then get too big
What isn't being talked about here is the cost to the company. Let's think about it, Hyundai and Kia are relatively new companies. When their 10yr warranties become mature on cars being built now, it will be HUGE. Its not that they have better quality (long term, not JD Power stuff) than the Big 3, but are the only ones to offer it now. The Big 3 know better (in fact so do the Germans and Toyohondaissan). My prediction in 5-7 years, that the 10 year warranty is gone (even if it is only on the drivetrain)
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