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GM Extends Warranty to Five Years, 100,000 Miles

Automaker Hopes to Improve Image, Sell Quality

By Joe Benton
ConsumerAffairs.com

September 6, 2006

• GMAC Changing Name to Ally Bank • New Car Sales Show Improvement From May • April Dismal For U.S. And Foreign Carmakers • Chrysler Files for Bankruptcy, GMAC Takes Over Financing • Auto Sales Stagnant, But Hope Appears • What Would a Chrysler Bankruptcy Mean For You? • U.S. Carmakers Getting More Federal Aid • GM Cuts More Jobs, Eyes China • New Car Sales Plunge in February • Car Buyers Seeking Higher Fuel Economy • Video: Do Women Really Hate Car Shopping? • GM Plans New Minicar, Electric Cadillac • GMAC Becomes a Bank • White House to Loan Carmakers $17.4 Billion • Chrysler Closing Car Plants for 30 Days • What Would a Washington-Designed Car Industry Look Like? • States Want Stronger Used Car Rule • Industry Troubles Cloud LA Car Show • Carmakers Get Neither Love Nor Money From Congress • Taxpayers Headed For Automotive Bailout • Time May Be Running Short for U.S. Carmakers • Feds Move Closer to Carmaker Bailout • New-Vehicle Buyers Turn to the Web in Record Numbers --- • More about Auto Sales ...

General Motors is increasing the powertrain warranty on all of its 2007 passenger vehicles to five years and 100,000 miles.

"At GM today, we believe in our cars and trucks," GM CEO Rick Wagoner Wagoner said. "We're putting our money where our mouth is."

The increase, from the previous warranty of three years and 36,000 miles begins immediately and covers 900 engine, transmission and driveline components.

"This isn't going to be cheap, but we think it's going to be more effective for where we are today," GM CEO Rick Wagoner said at a press conference. "We think it's manageable within the cost conditions we've laid out."

GM sales continue to struggle as the company fights an image of poor vehicle quality aas well as the customer perception that many import brands, particularly from Japan, are better built. The automaker is counting on the expanded warranty to help ease that perceived quality gap between GM vehicles and those of its rivals.

GM will also expand its roadside assistance and courtesy vehicle programs and the new warranties carry deductibles and can be transferred.

The powertrain warranty will be in addition to the current three-year, 36,000 mile bumper-to-bumper guarantees. Buick, Cadillac, Hummer and Saab currently carry four-year, 50,000 mile bumper-to-bumper coverage.

In July, Ford Motor Co. extended its powertrain warranties by up to two years on 2007 Ford, Lincoln and Mercury models.

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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