If Saturn Disappears, What Will Happen to My Warranty?
With the demise of Saturn nearly certain and the fate of Hummer, Saab and Pontiac hanging in the balance many consumers are wondering what will happen to their warrantees if these brands are sold or go into bankruptcy.
Saturn owners may face the biggest challenge since the Saturn sales and service experience is perhaps more popular than the cars themselves. Still, it is likely Saturn owners will be able to have repairs made under warranty, have routine service performed and continue to buy parts even if the Saturn brand is phased out by 2011 as proposed.
The recently announced plan to restructure GM and Chrysler, described in this Auto Observer article, has raised questions in consumer's minds about the long-term viability of owning one of these domestic cars. However, any plans automakers forge to return to stability (that means business as usual in the service bay) will certainly include plans to continue warranties and service.
Here is how it's likely to be handled:
What happens if the company which made my car goes into bankruptcy?
Although it doesn't happen often, a brand (such as Oldsmobile, for example) can go belly up. If this happens, both standard warranties and extended warranties (as long as they are manufacturer-backed extended warranties) are generally honored by "sister" brands (in this case, other General Motors brands). No automaker wants to leave its customers high and dry, so if you learn your brand will go out of business, contact your local dealer or the manufacturer to see what its plans are to protect its customers.
And while we're on the subject of warranties, here's an answer to a related question.
What happens if the company that sold my extended warranty goes out of business?
One of the reasons we urge consumers to buy manufacturer-backed extended warranties is because third-party companies can, and do, go out of business - leaving customers holding the bag. If you bought your third-party warranty directly from that company, you may be out of luck. But if your third-party warranty was sold to you through a dealer (which can happen because a third-party warranty may generate more dealer profit than a manufacturer-backed warranty), you may be able to appeal to the dealer where you bought it. Hopefully, the dealer will value your business and will somehow make good on the contract or offer a significant discount on a new warranty.
- Posted by
- Philip Reed February 17, 2009, 10:24 PM
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- Car Buying, Car Maintenance
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- GM, Hummer, Pontiac, Saab, Saturn, service and parts, warranty
As stated in the GM press release "Saturn will remain in operation for the next several years... and if Saturn retailers or other investors present a plan that would allow a spin-off or sale of the Saturn Distribution Corp., GM would be open to any such possibility." To read more about this option, and more details about the fact that your warranty is safe, click here: http://www.imsaturn.com/
Steve at Saturn Communications
Don't forget platform sharing, Phil. Saturn models may have other GM-branded counterparts that probably can be serviced in the same way. :o)