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Old 03-19-2015, 03:59 PM   #1
XDCX
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Default 2016 Chevrolet and GMC vehicles to drop 100,000 Mile Powertrain Warranty

USA Today reported that GM will be dropping the Powertrain Warranty Coverage on their 2016 Chevrolet and GMC vehicles from 5/100 to 5/60. GM indicated they were making this cut and a cut to their Free Maintenance Plan because their research indicated customers largely didn't care. For the full report from USA Today - click here

When I read the USA Today report I thought it was interesting that they had the wrong warranty information for Chrysler/FCA.

Is GM correct and customers really don't care, or are they walking away from what used to be a competitive advantage?
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Old 03-19-2015, 04:44 PM   #2
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USA TODAY correct and incorrect on FCA's warranties it just was never broken down, that paper went with FIAT's program...Might be sign of whats to come.

Chrysler Dodge Jeep Ram 3/36K (Basic) and 5/100K (Powertrain)

FIAT & ALFA vehicles are 4/50K (Basic and Powertrain)
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Old 03-19-2015, 05:46 PM   #3
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Originally Posted by ohiobuckeyes View Post
USA TODAY correct and incorrect on FCA's warranties it just was never broken down, that paper went with FIAT's program...Might be sign of whats to come.

Chrysler Dodge Jeep Ram 3/36K (Basic) and 5/100K (Powertrain)

FIAT & ALFA vehicles are 4/50K (Basic and Powertrain)
Thanks for the correction - you're 100% right.

I wasn't aware (or perhaps I'd forgotten) that the Fiat warranty was only 4/50,000. Dear Lord, how does Marchionne expect his Fiat Dealers to sell those things when they're already trailing brands like Hyundai and KIA?

Concerning Chrysler's future warranty coverage plans, I think in the old days Ford and Chrysler used to pay close attention to GM and follow their lead but I don't think that will be the case in this situation.

That said, if Chevrolet and Ford both have a 3/36 and 5/60 FCA could decide to follow suit in an effort to save some money. I'd bet against it, but I've been wrong before.
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Old 03-19-2015, 07:10 PM   #4
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I think CDJR and, for that matter, Fiat and Alfa, need the longest powertrain warranty possible.

I see the rationale for Fiat and Alfa having a 4 year/50,000 mile warranty on the basis that Fiat and Alfa are playing in the 'premium space,' but seriously -- let's not kid anyone -- the five CDJRF brands are struggling in initial quality, customer perception, and in many other ways after the sale.

Were it not for Jeep and Ram, the entire success of CDF are predicated on easy credit, long terms, falsely high residuals for leases and lots of incentive spending. When I was visiting my family in Detroit, there are Fiat stores advertising 25-35% 2014 Fiat 500L models... these aren't down demos, retired loaners, or anything... just left over cars that are $5-7k off after EP and what I'm imagining to be copious rebates.

If Fiat qualifies for the current $2,000 lease pull ahead and $1,000 returning lessee program, you could probably score an even bigger discount... even though the pull ahead is not compatible with EP, it's probably better to get yourself an FP number and take the additional $2,000... not sure... but I'd have to imagine that Fiat has returning lessee.
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Old 03-20-2015, 06:30 AM   #5
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Originally Posted by XDCX View Post
Thanks for the correction - you're 100% right.

I wasn't aware (or perhaps I'd forgotten) that the Fiat warranty was only 4/50,000. Dear Lord, how does Marchionne expect his Fiat Dealers to sell those things when they're already trailing brands like Hyundai and KIA?
What I think many customers do not know is if you purchase a Pre-Owned Kia/Hyundai your Basic / Powertrain Warranty is cut to 5 Years / 60,000 miles.

The 10 Year/100,000 mile PT is only for the Original Owner Only just like our Lifetime Powertrain Warranty, but yet I don't see anything about annual PT inspections.
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Old 03-20-2015, 12:35 PM   #6
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Quote:
Originally Posted by mryan55 View Post
I think CDJR and, for that matter, Fiat and Alfa, need the longest powertrain warranty possible.

I see the rationale for Fiat and Alfa having a 4 year/50,000 mile warranty on the basis that Fiat and Alfa are playing in the 'premium space,' but seriously -- let's not kid anyone -- the five CDJRF brands are struggling in initial quality, customer perception, and in many other ways after the sale.
I totally agree. Fiat is definitely not playing in the "premium space" arena and they need all the help they can get in terms of giving prospective customers confidence in the brand. In my opinion one of the cheapest ways an OEM can instill confidence is to provide a 100,000 mile warranty.
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Were it not for Jeep and Ram, the entire success of CDF are predicated on easy credit, long terms, falsely high residuals for leases and lots of incentive spending.
Quote of the week material...

When Marchionne first took the helms at Chrysler he boasted that he was going to drive down incentive costs because incentives were a sign of weakness. He put Chrysler in a "Hibernation" mode that killed off many of the NEWCO dealers that were trying to survive the recession.

It was old school Chrysler sales tactics that got Chrysler back on its feet - lots of money on the hood and stair-step Dealer Cash programs that force dealers to push units at the expense of gross profit.

I've said it in other posts, in my opinion the pure genius behind Marchionne is his ability to change course without ever acknowledging he was wrong. Apple's Steve Jobs was also touted as having this ability.
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Old 03-20-2015, 12:41 PM   #7
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Originally Posted by ohiobuckeyes View Post
What I think many customers do not know is if you purchase a Pre-Owned Kia/Hyundai your Basic / Powertrain Warranty is cut to 5 Years / 60,000 miles.

The 10 Year/100,000 mile PT is only for the Original Owner Only just like our Lifetime Powertrain Warranty, but yet I don't see anything about annual PT inspections.
I agree that most customers probably don't know the Hyundai/KIA 100,000 warranty is only available for the first owner. Ultimately Hyundai/KIA gets the image enhancement of offering a 10/100,000 PT warranty even though only a small percentage of their vehicles will be retained by the first owner for a period that long.

I think a 10/100,000 that reverts to a 5/60,000 for subsequent owners is brilliant - especially if Hyundai/KIA dealers are able to extend coverage to 10/100,000 for customers who choose to purchase added coverage in F&I.
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Old 03-26-2015, 02:50 PM   #8
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Yes, You are correct about the powertrain warranty for the Kia. I can add the 10 year powertrain back to a pre-owned car for a cost of $450 and it will run 10 years or 100,000 miles from the in service date. Very inexpensive coverage.
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