Good News and Bad for Chrysler and GM
So GM’s eBay program is a smashing un-success. Chrysler is discontinuing it’s lifetime powertrain warranty. GM is rumored to be considering a $4,000 car. Chrysler’s Deputy CEO is leaving.
Ahh, the week in auto news!
When GM launched its eBay program, we were quick to pan the idea as nothing new. I guess consumers agree, because according to this article, GM listed 16,228 vehicles and 45 have sold. Not forty-five hundred, but 45. Total. Nice.
Chrysler introduced a lifetime powertrain warranty in 2007 in an effort to lure consumers to the company’s lackluster product and one-up the likes of Hyundai, Kia, and Suzuki. Now the company is yanking that warranty off the table. There is some good news though: The replacement 5-year, 100,000-mile warranty will apply even to vehicles that weren’t covered by the lifetime warranty (including SRT models and the Dodge Viper).
You know the world has gone topsy-turvy when GM follows in the footsteps of Tata Motors. Just months after the official introduction of the world’s least expensive car, the Tata Nano, GM announced plans to pursue a sub-$4,000 car to compete in emerging markets. We Americans know from experience that GM is really good at producing cheap cars, and now one will finally have the price tag to match. Not in the U.S., though. Pity.
Finally, Chrysler’s Deputy CEO Jim Press will reportedly quit his job by the end of the year. Press began running Chrysler in 2007, but was demoted when Fiat’s Sergio Marchionne took over as the new CEO. This is good news, as removing Chrysler’s old blood can only result in better management and ultimately, better products.
Have a nice weekend, and drop us a comment if you see any other car news, good or bad, you think people should know.