GM to offer extended warraties...

[No Boss]

... yeah, that'll solve everything.

GM could extend warranties on many of its vehicles as part of a wide-ranging campaign to win back US customers lost in recent times.

The car giant is set to announce a major consumer-focused initiative later on Wednesday, thought likely to include the offer of longer warranties.

The struggling car giant wants to move away from expensive discounts on new models and customer rebates.

Tough competition has led to a slump in sales in its domestic market.

Marketing tools

Currently, most GM warranties are valid for three years or about 35,000 miles.

Some carmakers have used extended warranties as a marketing tool to give them an advantage in a fiercely competitive market.

Korean firm Hyundai has offered 10-year warranties since the late 1990s and has enjoyed a strong uplift in sales as a result.

Experts believe that as well as attracting new buyers, GM wants to send a signal about the quality of its vehicles at a time when many people are opting to buy foreign-made cars.

GM has gradually moved away from cash-based incentives this year.

Instead, it has offered deals on credit and fuel among other things.

Alliance advice

Separately, Renault has confirmed that it will hire two investment banks to advise on a potential tie-up with GM.

Renault has held exploratory talks with GM about the US giant joining its existing alliance with Nissan.

Talks about worldwide co-operation began in July and Carlos Ghosn, the chief executive of both Renault and Nissan, has said that a preliminary decision should be made next month.

I'm surprised that this report didn't end with "who'da thunk it?"

[BlaRo]

No Boss, your article sucks!

Here's a better one from Autoblog:

Billed as the best warranty of any full-lined automaker (sorry Hyundai/Kia), the new coverage for all General Motors vehicles is now a fully transferable five-year, 100,000 mile powertrain warranty with no deductible. The new warranty will cover all 2007 model and beyond cars and light-duty trucks sold in the U.S. and Canada, and any 2007 model already sold will receive the new warranty retroactively. In addition, GM has expanded its roadside assistance and courtesy transportation programs to five years, as well. A website has been set up to provide further details to customers and GM will officially introduce the new warranty on NBC tomorrow night during the NFL season opener between the Steelers and Dolphins.

This a shrewd move on GM's part that has been years in the making. The automaker's quality levels have only recently improved to the point where a warranty extension wouldn't saddle the company with overwhelming warranty repair costs. At this point, however, many GM brands have risen to the top half of J.D. Power and Associates quality and dependability studies, and the company reports that warranty repairs are down 40 percent over the last five years.

Hyundai has used its industry leading warranty to great effect in changing public perception of its vehicles, and we see GM starting down that path with this new warranty. It's all fine and good that GM has begun producing better quality vehicles, but backing it up with a robust warranty is how the company will convert those quality gains into more sales.

They're also offering free courtesy vehicles (hey, an Aveo is better than...walking?) for all 2007 cars. Why? "Because we can." Good thinking on their part, a small step in the right direction.

[Momentum57]

This is to help bring back the respectability of dealerships but I have to say it’s a long time coming. My fathers ford when I broke down he was out of luck, Ford had it in for a week. My 96 VW broke down and the dealer gave me, a 17 year old moron at the time, an A4. Now yes they are franchises, but I believe that the company literature goes a long way to instill the behavior and culture of the brand.

[Mischief007]

Good for GM. This is exactly what they need now. The longer warranty to tell you that the cars they produce are and have always been reliable.

[No Boss]

Originally Posted by Mischief007

Good for GM. This is exactly what they need now. The longer warranty to tell you that the cars they produce are .

I agree, I just always thought that GM had extended warranties. They were probably just an option you had to pay extra for like most of them

Originally Posted by Mischief007

...and have always been reliable.

Eh, practically all the GMs that my parents have owned (about 5) since I can remember have had problems. But, there are always exceptions.

[un-dee]

Originally Posted by Momentum57

My 96 VW broke down and the dealer gave me, a 17 year old moron at the time, an A4. Now yes they are franchises, but I believe that the company literature goes a long way to instill the behavior and culture of the brand.

Wow thats nice, if your A8 breaks down here they give you a Golf or Polo TDI. ^^