The Rumormill: GM to extend warranties
The rumored move is another step in winning the hearts, minds and cash of owners that have purchased competing brands, due to a perceived quality gap. Bloomberg cites Hyundai and Toyota as the biggest culprits of the General's market share, due to the formers lower pricing, coupled with a 10-year, 100,000 mile warranty and the latter's lower overall cost of ownership.
General Motors has already afforded Buick a one-year and 14,000-mile increase on GM's standard three-year, 36,000-mile warranty, which helped to bring the entry-luxury mark up to the standards of its Japanese rivals.
If such warranty extensions come to fruition, it will echo what Vice-Chair Lutz and others within GM have maintained for the past few years: they're confident that GM's products will hold up over the long-term. Hopefully the public will buy it, literally.
[Thanks for the tip, Invicta.]
[Source: Bloomberg News]
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