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DETROIT -- General Motors is increasing the powertrain warranty on all its 2007 model vehicles sold in the United States and Canada to 5 years or 100,000 miles, the automaker said today.
The powertrain warranty is transferable, without a fee, and has no deductible, GM said. Previously, GM's powertrain warranty typically was for three years or 36,000 miles.
GM said the new warranty terms would apply to 2007 models already sold. The automaker is also extending the terms of its roadside assistance and courtesy transportation programs along with the new warranty coverage.
"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."
Wagoner said such a move is possible by the quality gains GM has made over the past several years.
"It was a lot more costly five years ago than it is today, particularly in the powertrain area," Wagoner said. "Over the past seven or eight years we’ve communized on powertrains, we’ve really had a chance to move the needle up on our quality and performance."
GM set up a web site --
www.gm.com/warranty -- with details of the program. Among the changes, the new warranty eliminates the $100 deductible on repairs for trucks equipped with the DuraMax diesel engine.
The move is a bid by GM to counter successful marketing of long-term warranties by competitors such as Hyundai and Kia.
In July, rival Ford Motor Co. increased the powertrain warranty on Ford, Mercury and Lincoln vehicles for 2007 models. The warranty is five years or 60,000 miles for Ford and Mercury vehicles, and six years or 70,000 miles for Lincoln vehicles.
"What we’ve found is that two-thirds of customers trade or dispose of the vehicle before five years and 100,000 miles," said Mark LaNeve, GM's vice president of vehicle sales, service and marketing. "This really matches the way customers buy cars."