[TrainTrax]

Some bad news for Chevy fans, GM is axing its 100,000-mile, five-year powertrain warranty for the Chevrolet and GMC brands.

The program is being pared down to a 60,000-mile, five year warranty beginning with 2016 models. Free visits for maintenance have been cut from 4 visits to two.

Company executives wrote to dealers, "Through research, we have determined that when purchasing a new vehicle, included maintenance and warranty rank low on the list of reasons why consumers consider a particular brand over another."

A spokesperson said without many details that savings will be reinvested into other retail programs that customers value more than the warranty program.

 

[James]

Although this will suck for some, i don't mind it at all since i almost always aim to get rid of vehicles before their warranty term is up.

 

[MaxTrax]

Is this just an nicer way of saying that we now make our vehicles out of cheaper materials so we had to drop the warranty? Otherwise we would take great loss. Seem degrading either way you put it. I was hoping for the other way around giving even greater warranty in the future.

 

[ChevyMgr]

And reduced the free oil changes from 4 to 2. 4 was too many for a lot of drivers maybe 3 would have been a better idea.

 

[TrainTrax]

They should have announced something that they were giving customers at the same time, that way it would seem like they were just allocating resources differently instead of being cheap.

 

[Kooper]

Everyone knows maintenance and service are the dealerships big money makers, instead of selling more cars, lets get them in our bays more often! SHHH...

 

[James]

Everyone knows maintenance and service are the dealerships big money makers, instead of selling more cars, lets get them in our bays more often! SHHH...

Yup, servicing isn't cheap and necessary.
Having worked on the service end, I've seen the dark side that leverages fear of owners not as well informed and knowledgeable about the vehicle they own.

 

[chevyfan]

And reduced the free oil changes from 4 to 2. 4 was too many for a lot of drivers maybe 3 would have been a better idea.

I figured that was the case.
Looks like something they should have better looked into with a survey sent to dealers on what their customers do

 

[J.G]

They should have announced something that they were giving customers at the same time, that way it would seem like they were just allocating resources differently instead of being cheap.

Where did you get that rhetoric from?

http://www.autonews.com/article/20150316/RETAIL05/303169957/as-gm-trims-warranties-will-buyers-even-notice

Dealer David Ferraez wasn't upset when he heard last week that GM would be doing away with its 5-year/100,000-mile powertrain warranty on Chevrolet and GMC vehicles.

Ferraez, who owns Buick-GMC and Chevrolet dealerships in northern New Jersey, says the long warranty -- in place since model year 2007 -- wasn't on many customers' radars. That was GM's official rationale for reducing it to 5 years/60,000 miles for its two highest-volume U.S. brands, starting with the 2016 model year.

"We tried to use it as a differentiator because the imports didn't offer it," says Ferraez, whose market is dominated by Asian and European brands, most of which offer 60,000-mile coverage. "It didn't really work."

 

[Kooper]

Where did you get that rhetoric from?

http://www.autonews.com/article/20150316/RETAIL05/303169957/as-gm-trims-warranties-will-buyers-even-notice

good link, this is interesting...

Whatever GM's rationale, Ferraez and other dealers smell an opportunity.

"Selfishly for me, the first thing I thought of was that will probably help me to sell more extended warranties," Ferraez says. "We'll be able to make money doing that instead of the factory."

 

[TrainTrax]

good link, this is interesting...

LOL, there is the real truth.

 

[MaxTrax]

Yeah. Great link! Explains the situation greater depth and understanding and gives reasoning to why changes were made.

 

[J.G]

well and we also have to consider that the majority of vehicle sales are leases. Why cover the car for the extra time if consumers are turning them over before it reaches expiry.

whats interesting is 100,000 did little for attracting cutomers, but will getting rid of it now bleed customers faster then it could of attracted them?

 

[TrainTrax]

well and we also have to consider that the majority of vehicle sales are leases. Why cover the car for the extra time if consumers are turning them over before it reaches expiry.

whats interesting is 100,000 did little for attracting cutomers, but will getting rid of it now bleed customers faster then it could of attracted them?

That is an interesting point. The warranty wasn't getting customers but taking it away might lose some. An odd predicament. I'm sure in the end it won't have a big impact on sales. If the recalls didn't, this won't.

 

[MaxTrax]

So the re-calls didn't have a big impact on sales? I thought that any re-calls that happen to car brands always had a significant lose in sales. That is, until it rebuilds a reputation with the new reevaluated model.

 

[J.G]

So the re-calls didn't have a big impact on sales? I thought that any re-calls that happen to car brands always had a significant lose in sales. That is, until it rebuilds a reputation with the new reevaluated model.

They usually do... but GM is a unique bread of monster. GM's response to the recalls was to pile even more cash on the hoods of their vehicles... Currently their behaviour is EXACLTY the same behavious that got them into trouble.

Too focused on volume, max incentives to move product that is usually uncompetitive on its own...

 

[Carroway]

Wow. Maintenance is actually one of the things that I look for when buying a vehicle actually. I ride my vehicles pretty roughly, and I can easily eat up 100k miles in a good while becuase I can afford to vacation once a year, and enjoy traveling across the United States. Plus, it's always nice knowing that if something happens to my vehicles, I can take it in and it'll be nicely taken care of as well because of the warranty under it. It's that sort of safety net that I like beneath me when it comes to potential payments in the future and all. If I have to worry about how I'm not as covered now, I might drive a little bit more carefully, but in the end why wouldn't I take it over a similar car that offers all that I had before?

 

[Trax2015]

I narrowed down my choice of new vehicle to the TRAX and Mitsubishi Outlander Sport. Mitsu offers a great warranty, like Hyundai and Kia, but in the end I bought the TRAX so maybe GM has a point.

I also do not log heavy mileage so 5yr/100,000 or 10/100,000 mile power train warranties are lost on me.

 

[Kooper]

Wow. Maintenance is actually one of the things that I look for when buying a vehicle actually. I ride my vehicles pretty roughly, and I can easily eat up 100k miles in a good while becuase I can afford to vacation once a year, and enjoy traveling across the United States. Plus, it's always nice knowing that if something happens to my vehicles, I can take it in and it'll be nicely taken care of as well because of the warranty under it. It's that sort of safety net that I like beneath me when it comes to potential payments in the future and all. If I have to worry about how I'm not as covered now, I might drive a little bit more carefully, but in the end why wouldn't I take it over a similar car that offers all that I had before?

ITs true, although realistically this is pretty much the industry norm. A few of them jumped to 100,000 post 08 when they thought it would help encourage customers to buy...