GM has announced plans to reduce its powertrain warranty on 2016 Chevrolet and GMC vehicles from 100,000 miles to 60,000 miles. According to the automaker, the decision was made because the offer wasn’t a strong enough selling point.
In a memo sent to dealers on Wednesday by Chevrolet vice president Brian Sweeney and GMC vice president Duncan Aldred, GM said the five-year/100,000-mile powertrain coverage will be reduced to five years/60,000 miles starting with the 2016 model year. This matches that of many of its largest competitors, including Ford, Toyota and Honda, with only Hyundai and Kia offering a 10-year/100,000-mile powertrain coverage.
GM also said it would scale back its offer of two years of free maintenance, including oil changes and tire rotations, on most new vehicles from the Chevrolet, GMC and Buick brands. The number of free service visits will be reduced to two, from four, starting with 2016 models.
Introduced from the 2007 model year, GM’s 100,000-mile powertrain warranty was seen at the time as a way to improve GM’s perception of quality compared to its Japanese competitors, as well as give customers more confidence in GM’s vehicles. The automaker also thought it would help boost certified pre-owned sales.
Apparently, customers weren’t impressed by the extended warranty. “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 dealer memo cited by Autonews.
The decision doesn’t affect Buick and Cadillac, which will keep their six-year/70,000-mile coverage, while the Chevrolet Volt plug-in hybrid will keep its 100,000-mile warranty on its battery pack and drive unit.
Note: 2015 GMC Sierra pictured
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