GM Axes Chevy, GMC Extended Warranties

015 GMC Sierra Elevation Edition

General Motors is axing its extended warranties for Chevrolet and GMC vehicles. They were first rolled out in 2006 to promote GM quality and boost confidence among buyers, but the automaker says they’re no longer a strong selling point. In plain terms, GM feels that customers don’t really care about them when they’re choosing a vehicle.

So beginning with the 2016 model year, GM will chop Chevy and GMC powertrain warranties down 40,000 miles, to 60,000 miles from the current 100,000.

The automaker says it will also scale back free maintenance, since it’s determined customer’s don’t factor it too much into decision making, either. GM will also stop offering two years of free maintenance, including oil changes and tire rotations, on most new Chevy, GMC and Buick vehicles. Also, starting with 2016 models, owners will be offered two free service visits instead of four.

“We talked to our customers and learned that free scheduled maintenance and warranty coverage do not rank high as a reason to purchase a vehicle among buyers of non-luxury brands,” GM said in a statement. “We will reinvest the savings we will realize into other retail programs that our customers have told us they value more than these.”

The five-year/60,000-mile coverage that it will now offer will match that its largest competitors, including Ford, Toyota and Honda.

GM’s decision was first reported in Automotive News.  It says according to the memo sent to dealers, Buick and Cadillac will both keep current their six-year, 70,000-mile warranties in place.

Photo Credit: GMC


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