General Motors is increasing the powertrain warranty to 5 years or 100,000 miles, Rick Wagoner, Chairman & Chief Executive Officer, General Motors, said today. This will apply to all it’s 2007 model vehicles, including already sold 2007 vehicles.
According to Mike Jackson, General Manager, North America Vice President Marketing and Advertising, “we dont see this as an incentive. General Motors has been intensly dedicated to quality for the last five years. We are reducing our dependence on incentives. This is a value story versus a product story.”
In the press conference, Rick Wagoner said that many, were surprised when GM turned a profit for the first time since 2004 of $54 billion. He also said that GM is now on track to cut $9 billion by the end of this year. GM has increased capital spending and yielded results, Wagoner said. Residual values have gone up, cars by 7 points and trucks by 3 points on average.
Jackson said the added value applies to all 2007 Buicks, Cadillacs, Chevrolets, GMCs, HUMMERs, Pontiacs, Saturns, Saabs. It will apply to all models, is fully transferable and there is no deduction. The campaign also includes 24 hour roadside assistance and free transportation service. This new warranty supersedes the old 3 year or 36,000 mile warranty.
The advertising campaign starts September 7 and will be shown at the start of the NFL game. For further details go to http://www.gm.com/warranty/