US: GM decides to reduce powertrain warranty for Chevrolet and GMC brands image

The largest US automaker and the third biggest in the world, General Motors, has announced it would cut the powertrain warranty of Chevy and GMC vehicles on model year 2016 after the past offer proved a feeble selling point.

The company announced that its almost decade old offer for powertrain coverage – which stands today at five years and 100,000 miles – would be reduced to five years and just 60,000 miles for the upcoming 2016 models. “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,” commented GM in a statement. “We will reinvest the savings we will realize into other retail programs.” According to a GM spokesperson the change will have no immediate material impact on the finances. The powertrain warranty covers free of charge repairs to the automobile’s engine and transmission ensemble.

The company added that during the time that vehicles are in service for repairs related to the powertrain warranty it would continue to offer its services of courtesy transportation and roadside assistance for the entire coverage period. Additionally, starting with 2016 model year cars and light trucks the company would also move to reduce its ongoing offer of two years of free maintenance, including oil changes and tire rotations, on the majority of new Chevy, GMC and Buick autos. The affected models will have instead of four free visits to the authorized services just two, across all the aforementioned brands.

Via Reuters