GM's Warranty: "Still The Best"

[RJB]

Here is GM's response to Chrysler's recent news about their new warranty program.

Still The Best: GM’s 5-Yr./100k-Mile Powertrain Warranty

Chrysler recently unveiled a Lifetime Powertrain Warranty. But it’s a quality statement that still

doesn’t quite measure up, from GM's perspective. GM believes that our 5-Year/100,000-Mile

Powertrain Limited Warranty continues to be the better choice. Length of time is not the sole

factor in comparing manufacturers’ warranties. GM coverage focuses on the complete

ownership experience and includes other provisions that our competitors do not offer,

including transferability to the next owner and more complete coverage of parts. In addition,

GM offers superior complementary programs, like courtesy transportation and roadside assistance. In other

words, GM takes care of the vehicle and the owner, which is a competitive advantage. Of greater importance, GM

has the quality to back-up the coverage we offer.

Judge for yourself!

• Chrysler's Lifetime Powertrain Warranty covers 2008 model year vehicles delivered on or after

  July 26. By contrast, the GM 5 Year/100,000 Mile Powertrain Warranty covers 2007 and 2008 model year vehicles,

  as well as eligible 2002-2006 GM Certified Used Vehicles.

• The Chrysler warranty applies to the original owner only; GM coverage is transferable from owner to owner for 5 years or 100,000 miles (whichever comes first).

• Chrysler coverage requires an inspection by an authorized Chrysler, Dodge or Jeep dealer every five years; no inspection is required in connection to GM coverage.

• Most importantly, ALL 2007 and 2008 GM passenger car/light duty trucks are covered by the GM warranty. Chrysler's warranty coverage comes complete with a laundry list of exclusions, including: SRT vehicles, Sprinter, all Ram Cab/Chassis; vehicles equipped with diesel engines; rentals; government vehicles; and those vehicles used by police or as taxis, limousines, postal vehicles and ambulances.

[PurdueGuy]

A strong rebuttal, but it's almost an apples to oranges argument. Each one may be better for different consumers depending on their intended use for the vehicle...

[Intrepidation]

A strong rebuttal, but it's almost an apples to oranges argument. Each one may be better for different consumers depending on their intended use for the vehicle...

Exactly, and while while GM's sounds like it has it's own advantages, at a quick glance, Chrysler's will stand out.

I find the 5-year inspection argument kind of weak...because GM's warranty only lasts 5 years so of course tehy wouldn't need to check on the vehicle in 5 years....besides how hard is it to take the vehicle to be inspected once every 5 years.

Both are good warranties.

Edited August 9, 2007 by Dodgefan

[Ravenfreak13]

By next year, this agument will be completely pointless.

[regfootball]

what is toyota's warranty? 'point of sludge minus one week?'

[Z-06]

what is toyota's warranty? 'point of sludge minus one week?'

Actually zero right after you sign the paperwork.

[pow]

Perhaps GM should consider offering extended warranties for certain vehicles as incentives. If, say, a Cobalt had a 5/100K bumper-to-bumper warranty, that would give it "the best warranty of any car."

[regfootball]

from what i hear, extending the BTB warranty now is not all that expensive anymore.

[GMTruckGuy74]

While the limited powertrain warranty is nice, I'd much rather have a comprehensive Bumper-To-Bumper warratny for 5 years (or even longer!) or 100,000 miles. I worry about the computers, power window motors, hvac systems, plastic pieces used on a daily basis, etc. more than the powertrain. It would be nice to know that if I owned a vehicle, it was "protected" for the amount of time I'm making payments WITHOUT adding an extra cost extended warranty.

[big blue]

While the limited powertrain warranty is nice, I'd much rather have a comprehensive Bumper-To-Bumper warratny for 5 years (or even longer!) or 100,000 miles. I worry about the computers, power window motors, hvac systems, plastic pieces used on a daily basis, etc. more than the powertrain. It would be nice to know that if I owned a vehicle, it was "protected" for the amount of time I'm making payments WITHOUT adding an extra cost extended warranty.

My thoughts exactly. Forget the powertrain, give me BTB 5yr/100k and you'll really stand out GM. Or if you want to go the distance, BTB 7yr/100k.

[GXT]

My thoughts exactly. Forget the powertrain, give me BTB 5yr/100k and you'll really stand out GM. Or if you want to go the distance, BTB 7yr/100k.

Agreed. But they know very well they couldn't afford it.

This warranty is better than GM's, but both are a bit of a crock.

GM knows very well that the average person will only drive 60Kish mile in 5 years, so to extend the warranty from 60K to 100K has a small incremental cost. Those who do drive more than 60K are likely putting on a lot of highway miles which are easy on the vehicle. Nice to have the 100K, but an 80K with an extra couple of years would have been better.

Chrysler knows very well that most of their customers won't keep a new car for more than 7 years (the length of their old powertrain warranty) so this warranty might even be less expensive for them than their old warranty. Anyone who does keep their Chrysler for more than 7 years is going to be paying through the nose for the comprehensive items that are breaking.

I think Chrysler was lost for ideas as to how to make their cars depreciate even faster. Problem solved.

My last car I just paid the ~$1200 for a from-the-dealership comprehensive 7yr/80Kish 0-deductible comprehensive with roadside. Haven't had the chance to use it, but it is nice to know it is there and transferrable.

Edit: I should mention that was $1,200 CDN on a $48K car... so I didn't get hosed like it initially seems.

Edited August 9, 2007 by GXT

[GMTruckGuy74]

Fine, I'd be happy with a factory standard $0 deductible, 60 month/75,000 mile BTB warranty (that covers 15,000 miles per year for 5 years). If I want more coverage, then I'd be willing to pay for the extra beyond the 60/75,000 coverage. This coverage, standard on every GM vehicle (commercial/fleet could be slightly different, if needed) would really make GM stand out and show they stand behind their product for 5 years.

[pow]

Agreed. But they know very well they couldn't afford it.

This warranty is better than GM's, but both are a bit of a crock.

GM knows very well that the average person will only drive 60Kish mile in 5 years, so to extend the warranty from 60K to 100K has a small incremental cost. Those who do drive more than 60K are likely putting on a lot of highway miles which are easy on the vehicle. Nice to have the 100K, but an 80K with an extra couple of years would have been better.

Chrysler knows very well that most of their customers won't keep a new car for more than 7 years (the length of their old powertrain warranty) so this warranty might even be less expensive for them than their old warranty. Anyone who does keep their Chrysler for more than 7 years is going to be paying through the nose for the comprehensive items that are breaking.

I think Chrysler was lost for ideas as to how to make their cars depreciate even faster. Problem solved.

My last car I just paid the ~$1200 for a from-the-dealership comprehensive 7yr/80Kish 0-deductible comprehensive with roadside. Haven't had the chance to use it, but it is nice to know it is there and transferrable.

Edit: I should mention that was $1,200 CDN on a $48K car... so I didn't get hosed like it initially seems.

Ehh, most people drive more than 12K mi/yr now. I would hate to have our Odyssey transmission clunk out at 61K miles. In this poll, 22% had theirs replaced between 50K-100K: http://www.odyclub.com/forums/showthread.p...;threadid=29058

[CARBIZ]

While the limited powertrain warranty is nice, I'd much rather have a comprehensive Bumper-To-Bumper warratny for 5 years (or even longer!) or 100,000 miles. I worry about the computers, power window motors, hvac systems, plastic pieces used on a daily basis, etc. more than the powertrain. It would be nice to know that if I owned a vehicle, it was "protected" for the amount of time I'm making payments WITHOUT adding an extra cost extended warranty.

Actually, the PCM and catalytic converter are covered for 8 years/80,000 miles, BTW.

I find this discussion interesting, considering no other industry gets this kind of pressure. By a house, even a NEW house and some jurisdictions will cover it with a one year warranty (in Ontario anyway), by a $3,500 plasma TV and you get one year coverage.

I understand people's concerns about the warranty coverage, but after two or three years of driving it is really more to do with the owner's driving habits/locality/adherance to maintenance that will determine a vehicle's longevity. None of these warranties are free (the manufacturer offers them at the expense of other incentives) and those, say in a moderate climate are subisidizing those in nastier states (such as in the north) or people in the country are subsidizing the city dwellers who are often stuck in traffic - and, yes, the older people are subsidizing the younger ones, since the old geezers aren't inclined to burn rubber.

[PurdueGuy]

Personally, I'd take a much lesser warranty if it were accompanied by a much lower price.

Oh, wait, that's why I buy used...

[GXT]

Ehh, most people drive more than 12K mi/yr now.

Even if so, how much more? Another 5-10K miles over 5 years? What are the odds of a major powertrain problem during that time. Don't get me wrong, I'd take it. I'd never use it, but I'd take it. But overall, it is more flash than substance.

I would hate to have our Odyssey transmission clunk out at 61K miles. In this poll, 22% had theirs replaced between 50K-100K: http://www.odyclub.com/forums/showthread.p...;threadid=29058

The 50-100K doesn't tell the whole story. It would have had to have failed within 5 years as well for this GM-style warranty to have helped. I imagine much less than 22% failed at <5 years >60K miles. And that is a special case in that the Honda 5AT appears very problematic in certain applications.

For the average GM owner I'd imagine the comprehensive warranty would be much more important than the powertrain. At least that has been my experience, and everyone always talks about how bullet-proof the GM drivetrains are.

[GXT]

I understand people's concerns about the warranty coverage, but after two or three years of driving it is really more to do with the owner's driving habits/locality/adherance to maintenance that will determine a vehicle's longevity.

Do you work for Kia??? J/K.

A number of automaker have choosen at one time or another to "save money" by building vehicles of lower quality. Maybe it is the buyer's fault for being stupid enough to buy them. Perhaps they were even stupid enough to go by the JD IQS. But often you just don't know what they've done beneath the surface.

I'm willing to pay for the security. That's why I have house insurance even though I will likely never need it.

For those automakers who build a better product the cost of the warranty is relatively low anyways.

[FAPTurbo]

I think Chrysler was lost for ideas as to how to make their cars depreciate even faster. Problem solved.