Powertrain warranty on MY2016 Chevy and GMC to be trimmed

Article by Christian A., 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 2016 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.

In February, Chevrolet unveiled the 2016 Equinox compact SUV at the 2015 Chicago Auto Show, as updated to feature a new style and new wheel designs. It also features a larger color touchscreen radio and a standard rear-vision camera (entry-level models). Moreover, the new Equinox also comes available with new safety features.

Around 242,000 units of the Chevrolet Equinox were sold in the United States in 2014, marking fifth straight year of record sales for the second-generation compact SUV. The new 2016 Equinox is roomy enough to accommodate up to five occupants and large amount of cargo. The GM-exclusive MultiFlex sliding rear seat allows the new Equinox to carry up to 31.4 cubic feet (889 liters) of cargo behind the rear seat. Once rear seat is folded, this capacity surges to around 63.7 cubic feet (1,803 liters) with the rear seat folded.

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Topics: chevrolet, gmc

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