Powertrain warranty on MY2016 Chevy and GMC to be trimmed

Article by Andrew Christian, on March 17, 2015

General Motors is intending to reduce its powertrain warranty on MY2016 Chevrolet and GMC vehicles, saying that its current offer of 100,000-mile coverage wasn't a strong enough selling point. This means that the five-year/100,000-mile powertrain coverage will be trimmed to five years/60,000 miles for MY2016 models.

Chevrolet and GMC, however, will still offer courtesy transportation and roadside assistance during the coverage period. The new warranty would be similar to those offered by GM's largest rivals like Ford, Toyota and Honda. South Korean carmaker’s Hyundai and Kia offer a 10-year, 100,000-mile powertrain coverage.

Additionally, GM will trim its offer of two years of free maintenance, including oil changes and tire rotations, on most new Chevrolet, GMC and Buick vehicles. Starting with MY2016 models, these brands will only allow two free service visits. GM started offering the current powertrain warranty for MY2007 vehicles, as announced by then-CEO Wagoner in September 2006.

The offer was perceived as a way to close the gap in the quality perception between GM and its Japanese rivals while giving its customers a greater sense of confidence in its models. GM also believed that the offer would lead to a surge in certified pre-owned sales. However, the offer failed to become a major selling point for GM vehicles.

According to memo sent to dealers by Chevrolet vice president Brian Sweeney and GMC vice president Duncan Aldred, GM has determined through research that when purchasing a new vehicle, included maintenance and warranty ranked low on the list of reasons why consumers consider a particular brand over another.

According to a GM spokesman, both the powertrain warranty and the inclusion of free scheduled maintenance remain "among the most competitive in the industry." He quipped that the financial impact of the change is immaterial, adding that savings will be reinvested in features that customers value.

Topics: chevrolet, gmc

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016