Mopar, the automobile parts and service brand for Chrysler Group LLC and Fiat SpA, is now offering a number of inexpensive service plans for pre-owned vehicles. The offering is part of Mopar’s rebranding of its service contract operations. According to Mopar chief executive Pietro Gorlier, the brand will make a new lineup of Mopar Vehicle Protection service contracts available in Chrysler Group dealerships across the United States this week.
Chrysler's approximately 2,500 dealers sell an average of 65,000 service contracts monthly, either to new-vehicle customers or to existing customers, Gorlier disclosed. The Mopar service contracts will be offering repair coverage for 12,500 or 15,000 miles. Mopar will also be expanding a program that enables dealers to certify vehicles from other carmakers, said Mopar director of service contracts Alan D'Agostini.
Mopar’s service contracts range from a $65 Essential Care package of four oil changes over two years to a $4,830 Maximum Protection Plan that provides bumper-to-bumper coverage with no deductibles and remains in force as long as the consumer owns the vehicle. According to Gorlier, many of Mopar’s service contracts will have the same prices. Mopar’s rebranding efforts are aimed at helping dealers build better relationships with their service customers since prepaid maintenance will encourage customers to come back to the dealership instead of going to an independent competitor.
Gorlier disclosed that most dealerships have posted a huge decrease in warranty work – from 40 percent of service revenues years ago to around 15 percent today, mainly due to the higher initial quality of vehicles from all carmakers. This has led dealerships to work on maintaining relationships with customers. Gorlier remarked that if a dealership retains a loyal customer for up to 10 years, it would result to a revenue stream of up to $10,000.