Would you rather have a long warranty on your car or have a car that features more technology?
General Motors says it knows your answer to that question and is reducing the length of its warranty in favor of building cars with higher levels of connectivity.
GM started offering a 100,000-mile limited powertrain warranty in 2007 as a way to keep up with the likes of Hyundai and Kia and to help build a better perception of its cars.
The only problem is that customers didn’t notice.
Rather than building a marketing campaign around the long warranty, GM has decided to reduce it and use the cost savings on things it believes its customers truly care about.
GM said in a statement,
We talked to our customers and learned that free scheduled maintenance and warranty coverage do not rank high as a reason to purchase a vehicle among buyers of non-luxury brands.
The coverage on GMC and Chevrolet vehicles will drop from a 5-year/100,000-mile warranty to a 5-year/60,000-mile warranty. It will also cut its 4-year free maintenance program to 2 years. The changes will take effect for the 2016 model year.
GM also said it will invest the money it saves from the cuts in features it believes its customers value, such as advanced connected-vehicle technology.
The problem for General Motors is that long warranties and free service cost a lot of money, and if they don’t translate to higher sales, it only makes sense to scale back.
People are getting all worked up in the comment sections across the blog-o-sphere, saying this is a bad move by GM and they won’t consider a vehicle without a 100,000-mile powertrain warranty. If that’s the case, they also rule out Ford, Honda, Toyota, Porsche, and many more companies with some of the best cars on the planet.
The truth is, any car you buy today will likely last well over 100,000 miles. If a defect in the engine is going to happen, it’ll happen far before the 60,000 mark and be covered.
I don’t think this move will hurt GM at all. In fact, I have a feeling the majority of consumers won’t even notice.
Unless, of course, an engine happens to implode at 60,001 miles.
Will GM’s shorter warranty impact your decision whether to buy a Chevrolet or GMC vehicle?