GM Warranty Increase: Their Goal
As a follow-up to Phil's post yesterday on the GM warranty increase, I'd like to add my thoughts from an industry analyst perspective.
Much like their reduction of the MSRP on all 2006MY vehicles earlier this year (remember those "Head to Head" ads?), increasing the powertrain warranty is another component of GM's long-term turnaround strategy. Their intention isn't necessarily to increase sales, but rather to close the gap between the perceived quality of their vehicles and the actual quality. By backing up all 2007s with a 100K warranty, they are making a definitive statement to consumers that their product is built to last, and they are willing to put their money where their mouth is...
It helps to build their brand reputation and gives their customers peace of mind and confidence in GM products.
Ultimately, they are reaching out to a wider range of consumers who previously would not consider a GM vehicle.
- Posted by
- September 7, 2006, 9:04 AM
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I like the fact that G.M is trying to price their vehicles realistically. I didn't move on buying my Tracker until G.M had a 7000.00 rebate. That rebate I felt lowered the price more in line with how I felt the vehicle was worth. A 100,000 mile powertrain warranty would of really sealed the deal. Will it make me reconsider my buying choice in the future? Maybe. The product still needs to be a good product.
Now all they have to do is stop putting Dexcool in their vehicles so maybe they won't have as many people defecting to Toyota and Honda when their engine goes to crap.