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GM Extends Warranty to Five Years, 100,000 Miles

Automaker Hopes to Improve Image, Sell Quality

By Joe Benton
ConsumerAffairs.com

September 6, 2006

• GM Aims High-Mileage Cruze At U.S. Market • GM Offers Employee Prices to Spur Slow Sales • U.S. Consumers Favor Japanese and German Automakers • Automakers Report Huge Drop in Sales • GM Cuts Prices for February • Toyota Sales for 2007 May Surpass GM • New GM Sale May Challenge Bargain Hunters • GM Hangs on as World's No. 1 Automaker • Saturn Outlook Gets High Marks from Consumer Reports • Summer Car Sales Start to Sizzle • Consumer Reports Lists Best New Car Deals • Chrysler Dumps Remaining 2006 Inventory on Used Car Market --- • More about Auto Sales ...

General Motors is increasing the powertrain warranty on all of its 2007 passenger vehicles to five years and 100,000 miles.

"At GM today, we believe in our cars and trucks," GM CEO Rick Wagoner Wagoner said. "We're putting our money where our mouth is."

The increase, from the previous warranty of three years and 36,000 miles begins immediately and covers 900 engine, transmission and driveline components.

"This isn't going to be cheap, but we think it's going to be more effective for where we are today," GM CEO Rick Wagoner said at a press conference. "We think it's manageable within the cost conditions we've laid out."

GM sales continue to struggle as the company fights an image of poor vehicle quality aas well as the customer perception that many import brands, particularly from Japan, are better built. The automaker is counting on the expanded warranty to help ease that perceived quality gap between GM vehicles and those of its rivals.

GM will also expand its roadside assistance and courtesy vehicle programs and the new warranties carry deductibles and can be transferred.

The powertrain warranty will be in addition to the current three-year, 36,000 mile bumper-to-bumper guarantees. Buick, Cadillac, Hummer and Saab currently carry four-year, 50,000 mile bumper-to-bumper coverage.

In July, Ford Motor Co. extended its powertrain warranties by up to two years on 2007 Ford, Lincoln and Mercury models.

GM currently offers a 36-month, 36,000 mile warranty on most of its vehicles.

Some Korean automakers such as Hyundai, which has also faced consumer perception problems, offers a 5-year, 60,000 warranty on just about all parts of its vehicles, along with a 10-year, 100,000 mile warranty on its powertrain.

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