GM cuts 100,000-mile warranty on Chevrolet, GMC vehicles

NEW FIVE-YEAR/60,000-MILE WARRANTY WILL TAKE OVER FOR MOST GM VEHICLES

General Motors will cutting its 100,000-mile powertrain warranty on Chevrolet and GMC vehicles down to five years/60,000 miles, citing a lack of interest from buyers for the warranty, Automotive News reports. The 100,000-mile warranty has been offered by GM for almost a decade, though it apparently has not proven to be a strong-enough selling point to justify its continued existence.

General Motors will also cut back on its offer of two years of free maintenance for most new Buick, Chevrolet, and GMC vehicles. The maintenance offer has included free tire rotations and oil changes, and GM now plans to reduce that offer from a maximum of four visits to two, starting with the 2016 model year cars.

GM's new five-year/60,000-mile warranty was announced in a memo sent to dealers this week, though it will roughly match those offered by Honda, Toyota, and Ford. Hyundai and Kia's warranties, however, remain at 100,000 miles. GM will still offer roadside assistance and courtesy transportation during its coverage period.

"Through research, we have determined that when purchasing a new vehicle, included maintenance and warranty rank low on the list of reasons why consumers consider a particular brand over another," reads the memo sent by Chevrolet vice president Brian Sweeney and GMC vice president Duncan Aldred. "As a result, we have benchmarked our competitors, reviewed our current offerings and have concluded the following modifications to align closely with our customers’ needs and expectations."

However, the memo pointed out that Cadillac and Buick will keep their six-year/70,000-mile coverage, with the Chevrolet Voltmaintaining its 100,000-mile warranty on its battery and drive unit.

The 100,000-mile powertrain warranty was instituted in 2007 by former GM CEO Rick Wagoner as an effort to improve GM's image when it came to perception of quality (or lack thereof) compared to its competitors. The warranty was instituted to give new buyers more confidence in GM's new vehicles, while also giving pre-owned sales a boost.