Just saw this pop up on the news. GM is cutting the powertrain warranties for 2016 models to 60k miles from 100k.
http://finance.yahoo.com/news/gm-cut-chevy-gmc-powertrain-140049160.html
How will this help sales?
GM cutting Powertrain warranty for 2016
- Thread starter Nate1979
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The gotta havit new car market in booming right now. Other companies, apparently have more confidence in their products.
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Cheap [censored]....
Who else has 100K? This can be costly. I could have used such a thing on my recent, wonderful Japanese cars: the '09 forester and the '12 Honda and the '14 Nissan that had defective engines. Along with the Ford truck.
They must know that Gasahol is killing engines.
I bet I wouldn't need it on a Cavalier.
I guess it will help sell 2015 models. I don't think the perceived quality leaders ever offered more than a 60k powertrain warranty and for years it was less, so I don't think it will matter to many buyers.
This doesn't sound like they have confidence in their products as they age. I've liked and driven Chevys for 31 years, but nothing they currently make appeals to me. The new Colorado looked decent, until I priced out one out. This DI, VVT, AFM, and 8 speed + transmissions sounds like trouble when they get older all for slightly better fuel economy. It's too bad, but my favorite GM's were always the older Chevys (meaning pre-2002).
I will probably go Toyota next time anyway because their technology seems to be a little dated, but they do have the durability down. Maybe that is the secret.
As one of the readers of the Yahoo article pointed out, GM probably wants to sell more extended warranties this way. This change is sort of a price increase then. Oh and fewer maintenance visits will be allowed too:
"The Detroit automaker also will scale back its offer of two years of free maintenance, including oil changes and tire rotations, on most new Chevy, GMC and Buick vehicles, the publication said. The brands will reduce the number of free service visits to two, from four, starting with 2016 models."
Originally Posted By: ARCOgraphite
Who else has 100K? This can be costly. I could have used such a thing on my recent, wonderful Japanese cars: the '09 forester and the '12 Honda and the '14 Nissan that had defective engines. Along with the Ford truck.
They must know that Gasahol is killing engines.
I bet I wouldn't need it on a Cavalier.
Well that"s a bummer but then again most people would never drive 20,000 miles a year anyway to hit that 100,000 in the allotted time. 60,000 is right at the average of 12,000 miles a year over the five year time limit.
Also it looks like only GMC and Chevy so the thread title is a little misleading. Buick and Cadillac are apparently staying the same?
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New tech = shorter warranty. Welcome to the change. This is just one reason I stuck to proven tech.
$50k for shorter warranty, no thanks.
Glad I had a 100k warranty on my HHR. At 61k miles it died....
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IIRC they said the longer warranty wasn't deciding factor for their customers.
Probably true.
How many people really keep a new vehicle 100K ??
I guess we'd need to contact one of their bean counters to get an answer but it seems it would be sold long before it gets to 100K and I'm pretty sure the warranty isn't transferable.
IMHO Seems like it would be better for sales compared to how few might actually take advantage of it.
SO pay $50k for a vehicle and sell it after the 60,000 mile warranty expires. Insane!
Originally Posted By: ARCOgraphite
Who else has 100K? This can be costly. I could have used such a thing on my recent, wonderful Japanese cars: the '09 forester and the '12 Honda and the '14 Nissan that had defective engines. Along with the Ford truck.
They must know that Gasahol is killing engines.
I bet I wouldn't need it on a Cavalier.
Kestas
Staff member
When times get bad, automakers aften bump up their warranties instead of cutting prices to increase demand. It puts the financial burden on the company years down the road when they are back in good business. I think they're simply scaling the warranty back to normal, pre-depression levels, in preparation for the next downturn.
Not good for marketing saying that you are cutting way back on the warranty and any maintenance deals.
Sounds like a cheap takeaway while still charging you top dollar for the vehicle.
But...if the company survey IS true...then people will get what they ask for.
Nobody can accuse Americans of being overly bright.
Ford, Toyota, Honda are all 5yr/60k so they're in line with other top sellers. I don't think this will have any effect on their sales
Fiat Chrysler is 5yr/100k and I still wouldn't buy one...
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