GM Announces Best Warranty of Full-Line Automakers

[CSpec]

DETROIT – General Motors today announced the best warranty of any full-line automaker, with coverage up to 100,000 miles or five years across its entire 2007 car and light-duty truck lineup in the United States and Canada, reflecting its success in dramatically improving the quality and durability of its vehicles.

GM’s new 100,000 Mile Warranty coverage is a fully transferable five-year, 100,000-mile powertrain limited warranty with no deductible. GM also has decided to expand its roadside assistance and courtesy transportation programs to match the powertrain warranty term. Altogether, it’s the best coverage in the auto industry.

“We’ve been telling everyone how strong GM’s cars and trucks are in terms of value, design, quality and durability. Now we’re going to back it up,” Chairman and CEO Rick Wagoner said. “This new warranty, combined with GM’s outstanding quality, competitive pricing, relevant technologies and a strong new lineup of cars and trucks, provides motorists with an unprecedented level of value and peace of mind.

“This latest step in our North America turnaround plan reflects the confidence we have in the quality of our cars and trucks. It’s the result of years of hard work by our employees, suppliers and dealers. It’s something that motorists want and deserve. For those who haven’t driven a GM car or truck in a while, this is our way of saying, ‘Come on back and see what we’ve done.’

“The bottom line is GM now has the best coverage in the industry,” Wagoner said. “It includes the best warranty of any full-line automaker, equally compelling roadside assistance and courtesy transportation programs, unique safety and security technologies like OnStar and StabiliTrak, and the nation’s largest network of outstanding dealers, with well-trained GM Goodwrench technicians who service GM cars and trucks better than anybody else.”

The no-deductible, fully transferable limited powertrain warranty covers more than 900 components related to the engine, transmission, transfer case (if applicable) and final drive assemblies on all 2007 model-year Chevrolet, Pontiac, Buick, GMC, Hummer, Saturn, Saab and Cadillac cars and light-duty trucks sold in the United States and Canada. GM will extend the existing roadside assistance plan to 100,000 miles or five years, and will provide courtesy transportation for a covered warranty repair.

The new warranty will apply retroactively to 2007 GM cars and trucks already sold.

For non-powertrain components, GM’s Bumper-to-Bumper New Vehicle Limited Warranty remains in effect: four years or 50,000 miles for Buicks, Cadillacs, Hummers and Saabs, and three years or 36,000 miles for Chevrolets, GMCs, Pontiacs and Saturns.

The new package is an important part of GM’s sales and marketing strategy, which is focusing consumers on the inherent value of its cars and trucks. Higher quality vehicles, reduced incentives and lower daily rental fleet sales are helping increase the residual value of GM cars and trucks. In addition, GM transaction prices have been rising, well above the industry average.

Wagoner said today’s moves were the result of GM’s successful decade-long effort to dramatically improve the quality of its cars and trucks. “From the men and women who design, engineer and build our vehicles, to our union partners, suppliers and dealers, the GM team’s commitment to quality has enabled us to deliver this consumer confidence package.”

GM tracks vehicle quality several ways, including analyzing warranty visits and the results of 10 million customer surveys each year, and studying the quality surveys of several independent organizations. GM has made significant progress on all fronts:

* Warranty repairs at dealers have decreased 40 percent during the past five years.

* Two GM brands, Buick and Cadillac, placed in the top five in the J.D. Power and Associates Vehicle Dependability Study released last month.

* GM swept the large pickup segment, placed 11 models in the top three of their segments and had two models top their segments in the J.D. Power and Associates Initial Quality Study released earlier this year.

* In the Strategic Vision 2006 Total Quality Index Study, five GM models topped their segments – more wins than any other manufacturer for the second consecutive year.

* GM dealers also rank among the leaders in the most recent J.D. Power and Associates Consumer Service Index study, which measures customer satisfaction among new vehicle owners with the dealer service department during the first three years of vehicle ownership.

* GM’s Buick brand ranked second in the American Customer Satisfaction Index study released last month, administered by the University of Michigan's National Quality Research Center .

GM will begin promoting the new initiative during Thursday night’s NBC-televised NFL season opener between the world champion Pittsburgh Steelers and the Miami Dolphins. In addition, a dedicated web site (www.gm.com/warranty) provides consumers with additional details about the program.

[PurdueGuy]

This is great news, and IMO, an excellent move!

[Newbiewar]

scary...

well hopefully it'll be good for me... at the dealership...

I remember when hyundai introduced warrantys

my best friend had a cousin who was on the development team for the hyundai sonota interior...

well both my friend and cousin believed hyundai to be belly up before the 10 years was up... so what worth was the warranty if the company couldnt be there to back it...?

now... with a company assumably going BK less then a year ago, imposing the best warranty in the industry... how will public perception change?

honnestly i dont think it'll cost gm much... but it'll help them learn what they need to fix about their vehicles...

wonder if anyone will match it...

[BigPontiac]

I'm disappointed that this isn't a bumper-to-bumper program. I've never had powertrain issues with my GM vehicles, but most of the "non covered" items like electronics, trim, etc are where I've had problems once the warranty expires.

[Newbiewar]

I'm disappointed that this isn't a bumper-to-bumper program.  I've never had powertrain issues with my GM vehicles, but most of the "non covered" items like electronics, trim, etc are where I've had problems once the warranty expires.

190079[/snapback]

your upset about luxuarys? when the car is still getting you from point A to point B...

if you want the luxuarys covered get a luxuary make... like cadillac

things like power windows are fixable at your earliest convience... fixing the transmission is a must...

[Dragon]

your upset about luxuarys? when the car is still getting you from point A to point B...

if you want the luxuarys covered get a luxuary make... like cadillac

things like power windows are fixable at your earliest convience... fixing the transmission is a must...

190082[/snapback]

Depends on what electronics he’s talking about. Rear window defrost (which I had problems with), turn signals and brake lights are far from luxury items.

Edited September 6, 2006 by Dragon

[Newbiewar]

Depends on what electronics he’s talking about.  Rear window defrost (which I had problems with), turn signals and brake lights are far from luxury items.

190084[/snapback]

this is true...

but the world has survived this far without extreme warrantys... no one has a bumper to bumper that goes much farther then 36k miles... because the auto manufacture shouldnt be held accountable for users wear and tear... if its a major problem.. recall...

but... not saying things are the consumers fault... but if you look at hyundais warranty... it sounds good in theory, but there are so many loopholes for them to escape the work...

all in all... lets be happy...

[sciguy_0504]

Great move. My only small irk is that Saab and Caddy share the same warranty with Chevy and Saturn.

[red]

Good move, as this should really help boost consumer confidence. However, my feelings reflect Josh's statement....how about extending that bumper-to-bumper warranty?

[Paolino]

I think this is SO awesome! I'm so happy GM did something like this. Their engines are solid, they won't need much use of the warranties, but it'll draw customers in.

[Cremazie]

I think it is agreat move! I am so happy, just wish I waited 2 months!

[Northstar]

Great move.  My only small irk is that Saab and Caddy share the same warranty with Chevy and Saturn.

190092[/snapback]

This is true, but the bumper-to-bumper warranty is still more on Cadillacs and Saabs, and since the powertrain warranty is best in the industry, I don't see why a Cadillac buyer would be dissapointed that it wasn't longer than the Chevy at the same dealership.

It will be interesting to see if this boosts sales much. I think it could give consumers more confidence in buying from GM, but at the same time, they already have confidence in Toyota and Honda, so will they be swayed?

[SableStyle]

Are we defining 'the best' as how many miles per year you can drive under warranty?

Because even though Hyundai does have a ton of loopholes, 10/100k is better than 5/100k to me.

[frogger]

I figured the bumper to bumper would have been extended to 4 years/48,000miles. Thats too bad.

[loki]

still good news, except those people that just missed it... awwww

good place to start, now we all wait for (the) more outstanding products ... you know which ones.... right?

[Northstar]

still good news, except those people that just missed it...  awwww   

190125[/snapback]

That's why it says it goes into effect on all 2007 models that have already been sold.

[76ChevyTrucker]

there is only one problem that I see with this. Since Hyundai has issued its 10yr/100k mile warrant, finding parts like CV axles has become a bitch. Some people still like to work on their own, so finding the parts at somewhere other than the dealership would be the biggest problem. I can't really complain about the warranty, but looking at it from outside of the dealship parts department, I know I get ugly looks when I say I don't have, and can't get the CV axles for Mr. John Q Public's 2003 Hyundai Sonata because of the damned warranty deal with them.

[hyperv6]

When you offer some of the most reliable powertrains this was a no brainer!

It will help sell cars as it show GM has confidence in their product. This is important to those who have no clues about cars and just want reliability that will last through the lease period.

This will help GM move cars and will give them the press that they feel they offer enough quality to back it up!

Now is the time to promote this in advertising and take advantage of it across the board. Get Rick or Bob to state their confidence and tell the public we have you covered!

[76ChevyTrucker]

I definitely agree that GM's powertrains are the most reliable on the road, no doubt there. I also wouldn't mind seeing some advertising, but I can also see how a lot of ads would just bring sayings of "Oh, look, they're following Hyundai/Kia with their warranty".

[pow]

GM car/trucks already have bulletproof drivetrains. Upping the bumper-to-bumper coverage to 4yr/50K would be more useful.

[XM DUDE]

GM car/trucks already have bulletproof drivetrains. Upping the bumper-to-bumper coverage to 4yr/50K would be more useful.

190150[/snapback]

Cool I just bought one of these.

[76ChevyTrucker]

Yeha, bumper to bumper is where the real "problems" lie at, we all know that GM builds the best engines and transmissions out there (see the old, reliable, bulletproof, 2sp Powerglide in drag racing applications).

[XM DUDE]

Yeha, bumper to bumper is where the real "problems" lie at, we all know that GM builds the best engines and transmissions out there (see the old, reliable, bulletproof, 2sp Powerglide in drag racing applications).

190154[/snapback]

Now that I own a Tahoe, I notice a lot of old Suburbans and Tahoe's still running, even old blazers still alive and kicking. Edited September 6, 2006 by XM DUDE

[regfootball]

pontiac should get 4/50 BTB. hell mits has 5/60 BTB

[I hope GMRULES again]

Great news! I thought they should of did this long ago but it was probably part of a long term plan in thier restructuring. Glad Canada was included too.

Edited September 7, 2006 by I hope GMRULES again

[sciguy_0504]

This is true, but the bumper-to-bumper warranty is still more on Cadillacs and Saabs, and since the powertrain warranty is best in the industry, I don't see why a Cadillac buyer would be dissapointed that it wasn't longer than the Chevy at the same dealership.

190109[/snapback]

Didn't think of that. Now I have no problem with the change.

[ocnblu]

How could anyone complain about this? This is great news. A longer warranty has been shown to increase traffic and sales.

[loki]

Great news! I thought they should of did this long ago  but it was probably part of a long term plan in thier restructuring. I sure hope Canada is included in this????

190165[/snapback]

it said it was

[loki]

That's why it says it goes into effect on all 2007 models that have already been sold.

190128[/snapback]

i meant people that could've gotten an 07, but decided against it

[Guest YellowJacket894]

I bet DCX is bawling like a kid over scrapping it's 7 year/70,000 mile powertrain warranty.

[Newbiewar]

Are we defining 'the best' as how many miles per year you can drive under warranty?

Because even though Hyundai does have a ton of loopholes, 10/100k is better than 5/100k to me.

190115[/snapback]

well according to GM the average owner keeps his vehicle

52 months and 82k miles...

so the average buyer is driving more then 12k miles a year...

[Guest buickman]

With our higher quality and lower warranty expense, this move is a positive marketing decision. Furthermore, any costs related to the decision will not come into play for some time and is therefore affordable even during these difficult times when our cash position is circumspect.

Buickman

Edited September 7, 2006 by buickman

[SableStyle]

well according to GM the average owner keeps his vehicle

52 months and 82k miles...

so the average buyer is driving more then 12k miles a year...

190260[/snapback]

Okay, so what about Suzuki's 7/100k fully transferrable warranty then? around 14k a year, much closer to that estimate. And if you drive more conservatively (As I've done with the 3/36k on my Sable), then you get two more years.

I'm not saying that GM's warranty is bad...I'm just contending their claim that it's the best, cause I don't like that Suzuki is "America's #1" and Hyundai is "America's Best". 100k miles is 100k miles no matter what, so wouldn't it make sense that having the option of 7 or 10 years to stretch it out would make the longer warranty 'better'?

[Newbiewar]

Okay, so what about Suzuki's 7/100k fully transferrable warranty then? around 14k a year, much closer to that estimate. And if you drive more conservatively (As I've done with the 3/36k on my Sable), then you get two more years.

I'm not saying that GM's warranty is bad...I'm just contending their claim that it's the best, cause I don't like that Suzuki is "America's #1" and Hyundai is "America's Best". 100k miles is 100k miles no matter what, so wouldn't it make sense that having the option of 7 or 10 years to stretch it out would make the longer warranty 'better'?

190401[/snapback]

but GM's claim is that its the best warranty for a full line automaker... meaning everything from sports cars to trucks to luxuary cars... Aveo to XLR-V...

[knightfan26917]

I think this is good news.

May even persuade me to buy brand new ... instead of used.

Hmm...wonder how many it will actually persuade....

Cort, "Mr MC" / "Mr Road Trip", 32swm/pig valve/pacemaker

MC:family.IL.guide.future = http://www.chevyasylum.com/cort/

Models.HO = http://www.chevyasylum.com/cort/trainroom.html

"Gonna make some dreams come true" ... Hoyt Axton ... 'Della & the Dealer'

[Mr.Krinkle]

this is especially good for all those people who want to get a car that they need to last them because they drive so damn much. most people, average drive 10 -12k

per year.

but those on the fence who wont even look in gm's direction because they commute long and far now have a rather

convincing reason.

[BuddyP]

The woman drives just over 30k per year, So she'd use that up within just over 3 years.

[GMTruckGuy74]

I'm disappointed that this isn't a bumper-to-bumper program.  I've never had powertrain issues with my GM vehicles, but most of the "non covered" items like electronics, trim, etc are where I've had problems once the warranty expires.

190079[/snapback]

your upset about luxuarys? when the car is still getting you from point A to point B...

if you want the luxuarys covered get a luxuary make... like cadillac things like power windows are fixable at your earliest convience... fixing the transmission is a must...

190082[/snapback]

Depends on what electronics he’s talking about.  Rear window defrost (which I had problems with), turn signals and brake lights are far from luxury items.

190084[/snapback]

GM car/trucks already have bulletproof drivetrains. Upping the bumper-to-bumper coverage to 4yr/50K would be more useful.

190150[/snapback]

I have to say that I'm disappointed too that the Bumper-to-Bumper warranty wasn't extended. Since I lease at least one vehicle and usually for 36 months @ 15,000 miles per year, I add in the extended warranty to my lease payment to cover for those extra 9,000 miles (why should I have to pay out of pocket for a car I won't own?). And being that the vehicle lasts me between 30 & 36 months, the new powertrain warranty doesn't impress me at all (with leasing, that is). The problems I've experience have mostly not been powertrain-related, so I would have liked the extended Bumper-to-Bumper warranty instead (much like Caddy & Buick's 4 year/50,000 mile coverage).

-----------------------------------------------------------------------------------------------------------

On another point - since GM said it will be retroactivated to all 2007 model vehicles, am I assuming correctly that my 2007 Saturn SKY, purchased in April, will also benefit from this longer warranty??? If yes, then I'm happy with the longer powertrain warranty as I didn't get the extended warranty at all at the time of purchase

Edited September 7, 2006 by GMTruckGuy74

[GEESIXER]

Okay, so what about Suzuki's 7/100k fully transferrable warranty then? around 14k a year, much closer to that estimate. And if you drive more conservatively (As I've done with the 3/36k on my Sable), then you get two more years.

I'm not saying that GM's warranty is bad...I'm just contending their claim that it's the best, cause I don't like that Suzuki is "America's #1" and Hyundai is "America's Best". 100k miles is 100k miles no matter what, so wouldn't it make sense that having the option of 7 or 10 years to stretch it out would make the longer warranty 'better'?

190401[/snapback]

But, the thing is, Suzuki also does not offer road side asst. or courtesy transportation from the dealership either.

Plus, if you want the "bumper to bumper" extended, buy an EXTENDED WARRANTY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

GO GM GO!!!!!!!!

[I hope GMRULES again]

With our higher quality and lower warranty expense, this move is a positive marketing decision. Furthermore, any costs related to the decision will not come into play for some time and is therefore affordable even during these difficult times when our cash position is circumspect.

Buickman

190323[/snapback]

That's what I've always thought. They most probably will get increased sales because of it and it won't cost a penny for at least 3 years.

It may bring the price of an extended BTB warranty down since powertrain repairs won't be factored in.

[Matt276]

It would have been great to get a 4/50 BTB warranty. Too bad. I'm not sure it will increase sales.

[Drew Dowdell]

they already have banner ads out....

[SableStyle]

Okay, points taken.

But.

The TV spot is corny.

[Guest buickman]

Okay, points taken.

But.

The TV spot is corny.

190884[/snapback]

Remember the guy last Christmas in the red suit promoting "Red Toe Tag" sale? Most GM ads are "corny", just like the incompetent MBA's who approve them. Take Brent Dewar for example, the biggest nitwit I've ever met in a business suit.

Buickman

[blk95ta]

Interesting to see if this works. Avalanche/Tahoe rebates dropped from $3000 to a $1000 dealer incentive. Alot of people use rebates to help eat up negative equity as well as to get a better lease payment. I doubt the new warranties will help convince those that were looking at leasing or smart buy to make the purchase.

I have been looking at buying an avalanche and been watching the local dealership lot for the past 3 months. Not much movement on the Avalanche or the Tahoe.

[sciguy_0504]

Remember the guy last Christmas in the red suit promoting "Red Toe Tag" sale? Most GM ads are "corny", just like the incompetent MBA's who approve them. Take Brent Dewar for example, the biggest nitwit I've ever met in a business suit.

Buickman

190895[/snapback]

The one where people are jumping onto car carriers are very corny. Just as bad as Mr. Opportunity from Honda.

[Sixty8panther]

Very cool. Great news for us future Camaro owners.

[Guest buickman]

Lincoln is like your 94 year-old greatgrandpa who mumbles to himself and $h!s on the rug. - Flybrian

Thanks for proving my hypothysis...IMAGE IS EVERYTHING. GM ain't got it.

Buickman

the voice in the wilderness

[turbo200]

Incredible. Though it is slightly disappointing to hear this doesn't affect bumper to bumper coverage, and especially after reading most of the comments here, this is still a reflection of GM listening to the consumer and responding to marketplace changes. They are not the leaders and they understand they need to make great changes to change thier image. Yes, the image is totally lacking at GM. However, this will spur sales, interest, and consumer confidence even if those of us here know GM's powertrains are not what need the backing.

[nightwave]

Okay, points taken.

But.

The TV spot is corny.

190884[/snapback]

I actually think the TV spot is quite cool. Love the music for it.