• Sep 6th 2006 at 1:46PM
  • 65
Billed as the best warranty of any full-lined automaker (sorry Hyundai/Kia), the new coverage for all General Motors vehicles is now a fully transferable five-year, 100,000 mile powertrain warranty with no deductible. The new warranty will cover all 2007 model and beyond cars and light-duty trucks sold in the U.S. and Canada, and any 2007 model already sold will receive the new warranty retroactively. In addition, GM has expanded its roadside assistance and courtesy transportation programs to five years, as well. A website has been set up to provide further details to customers and GM will officially introduce the new warranty on NBC tomorrow night during the NFL season opener between the Steelers and Dolphins.
This a shrewd move on GM's part that has been years in the making. The automaker's quality levels have only recently improved to the point where a warranty extension wouldn't saddle the company with overwhelming warranty repair costs. At this point, however, many GM brands have risen to the top half of J.D. Power and Associates quality and dependability studies, and the company reports that warranty repairs are down 40 percent over the last five years.

Hyundai has used its industry leading warranty to great effect in changing public perception of its vehicles, and we see GM starting down that path with this new warranty. It's all fine and good that GM has begun producing better quality vehicles, but backing it up with a robust warranty is how the company will convert those quality gains into more sales.

Read what Bob Lutz has to say about the new warranty on the GM FastLane Blog.

(GM's full press release can be found after the jump)

[Source: GM]

Press release:

GM Announces Best Warranty of Any Full-Line Automaker

GM to Provide 100,000-Mile/Five-Year Powertrain Warranty, Roadside Assistance and Courtesy Transportation on 2007 Cars and Trucks

Comprehensive Coverage Validates Dramatic Improvements in GM Quality, Durability

DETROIT – General Motors today announced the best warranty of any full-line automaker, with coverage up to 100,000 miles or five years across its entire 2007 car and light-duty truck lineup in the United States and Canada, reflecting its success in dramatically improving the quality and durability of its vehicles.

GM's new 100,000 Mile Warranty coverage is a fully transferable five-year, 100,000-mile powertrain limited warranty with no deductible. GM also has decided to expand its roadside assistance and courtesy transportation programs to match the powertrain warranty term. Altogether, it's the best coverage in the auto industry.

"We've been telling everyone how strong GM's cars and trucks are in terms of value, design, quality and durability. Now we're going to back it up," Chairman and CEO Rick Wagoner said. "This new warranty, combined with GM's outstanding quality, competitive pricing, relevant technologies and a strong new lineup of cars and trucks, provides motorists with an unprecedented level of value and peace of mind.

"This latest step in our North America turnaround plan reflects the confidence we have in the quality of our cars and trucks. It's the result of years of hard work by our employees, suppliers and dealers. It's something that motorists want and deserve. For those who haven't driven a GM car or truck in a while, this is our way of saying, 'Come on back and see what we've done.'

"The bottom line is GM now has the best coverage in the industry," Wagoner said. "It includes the best warranty of any full-line automaker, equally compelling roadside assistance and courtesy transportation programs, unique safety and security technologies like OnStar and StabiliTrak, and the nation's largest network of outstanding dealers, with well-trained GM Goodwrench technicians who service GM cars and trucks better than anybody else."

The no-deductible, fully transferable limited powertrain warranty covers more than 900 components related to the engine, transmission, transfer case (if applicable) and final drive assemblies on all 2007 model-year Chevrolet, Pontiac, Buick, GMC, Hummer, Saturn, Saab and Cadillac cars and light-duty trucks sold in the United States and Canada. GM will extend the existing roadside assistance plan to 100,000 miles or five years, and will provide courtesy transportation for a covered warranty repair.

The new warranty will apply retroactively to 2007 GM cars and trucks already sold.

For non-powertrain components, GM's Bumper-to-Bumper New Vehicle Limited Warranty remains in effect: four years or 50,000 miles for Buicks, Cadillacs, Hummers and Saabs, and three years or 36,000 miles for Chevrolets, GMCs, Pontiacs and Saturns.

The new package is an important part of GM's sales and marketing strategy, which is focusing consumers on the inherent value of its cars and trucks. Higher quality vehicles, reduced incentives and lower daily rental fleet sales are helping increase the residual value of GM cars and trucks. In addition, GM transaction prices have been rising, well above the industry average.

Wagoner said today's moves were the result of GM's successful decade-long effort to dramatically improve the quality of its cars and trucks. "From the men and women who design, engineer and build our vehicles, to our union partners, suppliers and dealers, the GM team's commitment to quality has enabled us to deliver this consumer confidence package."

GM tracks vehicle quality several ways, including analyzing warranty visits and the results of 10 million customer surveys each year, and studying the quality surveys of several independent organizations. GM has made significant progress on all fronts:
  • Warranty repairs at dealers have decreased 40 percent during the past five years.
  • Two GM brands, Buick and Cadillac, placed in the top five in the J.D. Power and Associates Vehicle Dependability Study released last month.
  • GM swept the large pickup segment, placed 11 models in the top three of their segments and had two models top their segments in the J.D. Power and Associates Initial Quality Study released earlier this year.
  • In the Strategic Vision 2006 Total Quality Index Study, five GM models topped their segments – more wins than any other manufacturer for the second consecutive year.
  • GM dealers also rank among the leaders in the most recent J.D. Power and Associates Consumer Service Index study, which measures customer satisfaction among new vehicle owners with the dealer service department during the first three years of vehicle ownership.
  • GM's Buick brand ranked second in the American Customer Satisfaction Index study released last month, administered by the University of Michigan's National Quality Research Center .
GM will begin promoting the new initiative during Thursday night's NBC-televised NFL season opener between the world champion Pittsburgh Steelers and the Miami Dolphins. In addition, a dedicated web site (www.gm.com/warranty) provides consumers with additional details about

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    • 1 Second Ago
      • 7 Years Ago
      feb. 07 I bought an 06 pontiac g6 with 33k. I thought it was a fantastic car untill last week when the transmission wouldnt shift, the dealer told me that it would be $580.00 just for the teardown not to fix it or put it back together. What a warranty !!!
      • 9 Years Ago
      It's a good step in the right direction. GM is putting the focus on the quality of their products rather then then "the deal". While it's no panacea, it will help.
      • 9 Years Ago
      They're going for the magic 100,000; it's essentially a 5 year / unlimited miles powertrain warranty. Not as good as a 6/100 or even a 6/75 for most people. But better than the 5/60 nearly everyone else is now offering for people who drive a lot.

      Hyundai's 10/100 is not trasnferable. The second owner gets 5/60. So for second owners, GM has a better powertrain warranty. Of course, Hyundai's 5/60 is BtB.

      They could have done this years ago. Total warranty costs have dropped recently, but I suspect that their POWERTRAIN warranty costs have been among the lowest in the industry for some time. Their core engines and four-speed automatics rarely require service.

      Of course, now they have new six-speeds coming out. Let's hope these don't have teething problems. Otherwise, they might have extended warranty just as repair rates are about to jump.
      • 9 Years Ago
      Hyundai still has the better warranty if you expect to keep the car for more then 5 years, but it's good to see GM backing their cars longer.

      • 9 Years Ago
      "Their core engines and four-speed automatics rarely require service."

      While this may be true, I guess I was one of the unlucky ones. I had to replace a transmission in a '97 Grand Prix GTP at 88,000 km's to the tune of $3k (Canadian GM warranty is a pathetic 3/60k km's)

      Warranty coverage of the tranny would have totally changed my view of my ownership of that vehicle (from "I don't think I can stand to buy a GM again" to "well, everything that went wrong was covered at least").

      I mean, yes, it could happen to any vehicle...but let's just suppose I bought another GM and it happened again, I'd feel extremely stupid. If it happens to my current ride ('02 Nissan Maxima) at least I can't feel like I was too dumb to learn a lesson.
      • 9 Years Ago
      Actually, JDpower intital quality IQS has GM powertrains #1, and JDPower 5 year powertrain durability has GM #2, with the fastest gains of any automaker. Since powertrain failures are so rare, the new warranty will cost GM only $40 on average. This move is genius as it continues to shake the market and disabuse foreign car customers from their outdated perceptions about GM quality.
      • 9 Years Ago
      Independent garage mechanics like me will suffer because people will try the dealer first to see if it is a freebie repair. By the time the car is there, the dealer will most likely get the job, whether it is covered or not. Even if they are not covered, issues like additional wrecker fees or more time without their wheels will ultimately give the dealer almost ALL of the repair money. They win and smell like a rose at the same time and we independents have been expecting this for a little while now.
      • 9 Years Ago
      Let's see if the Germans put some balls behind their warranty. If the average American spent the money maintaining their vehicle as recommended by the specififactions of BMW or Mercedes. They would not need a 100,000 mile warranty because they would not have any problems. Most Domestic Buyers want to change the oil and consider it a major maintenance. The cost of the recommended maintenance of most high line imports will cost more than any repairs on a GM Car or Truck over 100,000 miles. I have owned Domestic and Import Vehicles both, without any problems. Maintenance is the Key to Happy Motoring.
      • 9 Years Ago
      Boy, they better double the size of their service bays at the dealers. The Goodwrench Mechanic is now the most secure job in North America!
      • 9 Years Ago
      "I made it up because I have nothing better to do....right! Feel free to go rent a 33,000 mile Malibu rental and an 20,000 mile Altima back-to-back and see for yourself. Enterprise in Pa. has plenty of Malibu and Altima rentals. Or are you not subjective enough to make a clear judgment? That's my bet as you are so suspicious of my comments."

      Amen. Where I work, we use GM for the fleet cars. Every Malibu is pretty much junk by 20k and scrapheap material by 50k. The Cavaliers are even worse - we have one with 90k and it is pretty much ready to fall apart - the drivetrain coughs more than Seabiscut.

      Good luck GM, you're going to need it - your cars (even the 05/06's) are pretty much done by 50k.
      • 9 Years Ago
      " all mechcanical things break even Toyotas"

      Not mine. 122,000k and not a single problem. Still drives like brand new.

      • 9 Years Ago
      " toyotas offer these best warranty, a car that doesnt need a long warranty and one that retains its value."

      -If it does not NEED a long warranty why not go a step above Hyundai to at least shup them up?

      -If it does not need a long warranty, why not offer it?
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