REPORT: Chrysler dropping lifetime powertrain warranty to five-year/100,000 miles
Back in 2007, Chrysler sent something of a shockwave through the industry by announcing a new lifetime powertrain warranty program for nearly all of its cars and trucks. At the time, we wrote "the only fly in the ointment is that the new warranty applies to the original owner and is not transferable." Once the vehicle had been sold, the warranty reverted to a standard three-year/36,000 mile affair. According to the automaker, that minor nitpick caused a load of confusion amongst its buyers.
But there's new word from the Pentastar faithful over at Allpar that Chrysler is dropping its lifetime powertrain coverage in favor of a more conventional five-year/100,000 mile plan that's fully transferable from one owner to the next. The new warranty will reportedly cover all Chrysler, Dodge (minus the Sprinter van) and Jeep models and extends to the high-performance SRT models, fleet sales and police cruisers as well – vehicles the old lifetime program didn't cover.
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[Source: Allpar]
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Reader Comments (Page 1 of 3)
skeptic 9:08AM (8/20/2009)
Does "New Chrysler" have to honor claims under the old warranty program?
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John 9:11AM (8/20/2009)
Yes. Anyone who purchased a car with a Lifetime Powertrain Warranty will still receive that warranty for as long as they own the vehicle. Further this new warranty starts with the 2010MY vehicles, and any current 2009MY vehicle left on dealer lots still carries the Lifetime Powertrain Warranty.
MemphisNET 9:13AM (8/20/2009)
They don't have to - but they do. Another good thing about this new warranty is that it is tied to the product, not the owner. So you could be the 3rd owner, and as long as that car is within its warranty timeframe/mileage, they can get service without even having to register the vehicle with Chrysler.
Next move for Chrysler : Get your dealers/service ppl to a competitive level with Toyota/BMW. I fortunately have a fantastic dealer, but there are many many many more that pass the buck and screw the customer when ever possible.
John 9:08AM (8/20/2009)
This is a good switch for Chrysler. It's a very competitive warranty that now covers their high performance branch and most police/fleet sales.
It also removes the headache down the road when someone forgets to do their "Every 5 year powertrain inspection" and is therefore no longer covered. Plus, this warranty requires A LOT LESS paperwork by the dealer.
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Quantumphysics 9:28AM (8/20/2009)
You're right. I own a Chrysler 300 and right now I have to buy a new warranty. 7 years/ 70,000 miles for $2200 (or $220 a month payments for one year)
Chrysler doesn't make horrible cars, but I'm sure anyone buying them wants to ensure they are covered for the life of the product.
Greg 10:24AM (8/20/2009)
The resale value of Chrysler products will be increased by this change as well. The transferable 5/100 has value to the 2nd or 3rd owner, the NON transferable lifetime plan did not.
Tool 12:00PM (8/20/2009)
It's also a good idea for the New New New Chrysler to get rid of the 'Lifetime Warranty' and go to a 5-year since Chrysler -- as we know it -- probably won't be in business in the coming years.
jpm100 9:14AM (8/20/2009)
The FIAT lawyers have probably determined that they may not be able to get out of those lifetime commitments when they dissolve what's left of Chrysler.
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Steve Lopez 9:48AM (8/20/2009)
Why?
That is an incentive to buy a Chrysler product.
Hyundai has a good warranty program, why not Chrysler.
Not sure about that idea.
Start over the 5 year, 50,000 program again.
Bring them into your showroom or they will go to the other guy.
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Epyx 1:03PM (8/20/2009)
Chrysler is basically mimicking the Hyundai warranty. The new plan is much better than the old - did you read the article or just the headline?
Raz 9:36AM (8/20/2009)
Nothing ever lasts a life time. Bearings, sheaves, everything wear out and are subjected to fatigue, it gets to the point Chrysler will have to replace the entire car for the owners. It is stupid of them to even give a warranty more than 10 years from a business and engineering point of view.
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Joseph 9:54AM (8/20/2009)
Well powertrain usually covers engine, transmission and axles. Modern engines from any make usually last at least 200,000, Chryslers transmission are not quite that horrid anymore, and its hard to screw up axles. Chrysler is banking on essentially the owner getting bored with the car/wanting a new one and/or the car falling apart around the engine and transmission.
The whole thing originally was a quick and dirty plan by cerebrus to try and get sales up.
Raz 10:11AM (8/20/2009)
Very true, not too many will keep the same car forever unless it holds a certain value to them. Well, if the owner drives across states often, its not too difficult to clock 200k to 300k in 4 to 5 years
Tony 8:08PM (8/20/2009)
The warranties on all vehicles apply to manufacturers defects ( ie the dealer and manufacturer agree the part should've lasted longer). Warranties do not cover normal wear and tear on any part, the dealer makes the determination if the failed part can be covered under your warranty. If your alternator goes after 10 years and 250,000 miles you can bet it would not be covered under your "Lifetime power train warranty"
tankd0g 8:52PM (8/20/2009)
Warranty is not for replacing worn out parts.
burninblubber 10:04AM (8/20/2009)
I was thinking of buying a Jeep just next year just because of the lifetime warranty. I guess if it's still possible to get a 2009 model next year I might get one.
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tomguptill 10:12AM (8/20/2009)
So for people like me who drive a bit less than 10,000 miles a year, what they're saying is "We'll stand behind our car...half as long as Kia will stand behind a Rio."
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Wobbly_ears 10:22AM (8/20/2009)
If Chrysler, GM & Ford's products are so good, why won't they have a longer warranty period? When Hyundai & Kia have drivetrain warranty for 100k & bumper-to-bumper for 60k/5yrs, why not the domestics?
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kal326 10:48AM (8/20/2009)
There is the small caveat that the 10yr/100k warranty is only for the original owner. Secondary owner or if you even gave the car to your kid or any other family member is only good for 5yr/60k.
Still not bad 5yr/60k bumper to bumper regardless of where in the chain of ownership you bought it.
http://www.hyundaiusa.com/global/warranty/warranty.aspx
BigWill 11:21AM (8/20/2009)
Exactly. If you think about it, the Hyundai warranty was crafted almost perfectly around how the average person buys and owns their car. Finance your car for five years, drive an average of 10-12K miles/year, and your car is covered bumper-to-bumper the whole time you're making payments. The average car on the road is 9.4 years old, which means the Hyundai powertrain warranty covers the life of the average car. It's what makes GM and Chrysler's neutering of the warranty to 5 years so significant; neither GM nor Chrysler seems to have figured out why people *still* consider the Hyundai warranty superior to theirs. Even worse, they're watching Hyundai prosper and its reputation heal because of that warranty and they don't get it.
This just highlights why it's clueless business as usual in Detroit.