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F&I Management | Finance & Insurance News
March 20, 2015

GM Announces Modifications to Powertrain Warranty, Maintenance Program

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F&I Management | Finance & Insurance News
March 20, 2015

GM Announces Modifications to Powertrain Warranty, Maintenance Program

GM Announces Modifications to Powertrain Warranty, Maintenance Program, from F&I Showroom.

DETROIT — In a memo issued to dealers on Wednesday, General Motors announced it is rolling back coverage on its Chevrolet and GMC powertrain limited warranty and is reducing the number of visits under its free maintenance program for Chevrolet, Buick and GMC vehicles. The modifications, which will take effect on 2016 model-year vehicles, could be a boon for F&I product penetrations, according to one F&I product executive.

The memo stated that GM will reduce the Chevrolet and GMC extended powertrain warranty, which covers the engine, transmission and transaxle, transfer case, drive systems and emissions control systems, from five years or 100,000 miles to five years or 60,000 miles. The two offerings will continue to include roadside assistance.

GM will also reduce the number of service visits under its two-year, 24,000-mile Chevrolet Complete Care, GMC Pro Grade Protection and Experience Buick Protection maintenance programs from four to two.

According to a company spokesperson, the move was based on consumer research that showed free maintenance and warranty coverage weren’t major purchase considerations. The spokesperson added that internal company data showed a significant drop off in consumer usage of the maintenance program after the first visit.

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