General Motors cuts length of US warranty on 2009 Saab models, says measure will cut costs

[cwerdna]

GM reduces length of 2009 Saab warranty: Financial News - Yahoo! Finance

"NEW YORK (AP) -- General Motors Corp.'s Saab unit is cutting the length of its warranty on its 2009 U.S. models to reduce costs while remaining competitive with other luxury brands, the company said Monday.

Saab will now offer a four-year powertrain warranty for up to 50,000 miles in place of the five-year, 100,000-mile warranty offered on other GM brands, Saab spokeswoman Joanne Krell said..."

[bac]

Originally Posted by cwerdna

GM reduces length of 2009 Saab warranty: Financial News - Yahoo! Finance

"NEW YORK (AP) -- General Motors Corp.'s Saab unit is cutting the length of its warranty on its 2009 U.S. models to reduce costs while remaining competitive with other luxury brands, the company said Monday.

Saab will now offer a four-year powertrain warranty for up to 50,000 miles in place of the five-year, 100,000-mile warranty offered on other GM brands, Saab spokeswoman Joanne Krell said..."

So instead of increasing the cost, they just wack your warranty time, eh? Either that, or they are REALLY taking a bath in terms of warranty work on those Saabs.

At the end of the day, it's still a GM to me.

... Brad

[ceric]

It all make sense to GM. Cut the warranty length so that more people will start to buy more Saabs...
Genius!

[mingoglia]

Originally Posted by ceric

It all make sense to GM. Cut the warranty length so that more people will start to buy more Saabs...
Genius!

[Godiva]

Uh, if they're saving money by cutting the length of the warranty, that tells me that the car is going to need work under what *used* to be the length of the warranty and that with the new shorter warranty *I* will not be paying for that work out of pocket.

And this is going to encourage me to buy a Saab because........?

[Jimmie84]

Meh, All those extended warranties are a sales pitch anyways. Much like Chryslers "lock in gas at $2.99 for 3 years".

If I buy a new vehicle I will only take the factory warranty. If it has tons of problems within that time frame I'll get rid of it. Goes for any vehicle in my opinion.

Although I do like Dodge's Lifetime drivetrain warranty. Covers all them expensive parts especially in a 4x4 truck that could cost thousands to repair if something breaks.

[jayman]

Originally Posted by Jimmie84

Although I do like Dodge's Lifetime drivetrain warranty. Covers all them expensive parts especially in a 4x4 truck that could cost thousands to repair if something breaks.

I wonder what the fine print is? I just can't see a "lifetime" whatever, there is usually enough wiggle room to allow them to wiggle out of a claim

Ok checked it out. You're supposed to see the dealer for details. They probably have a book the size of War ANd Peace you have to wade through

[KayakerNC]

Originally Posted by jayman

I wonder what the fine print is? I just can't see a "lifetime" whatever, there is usually enough wiggle room to allow them to wiggle out of a claim
Ok checked it out. You're supposed to see the dealer for details. They probably have a book the size of War ANd Peace you have to wade through

That would be Chrysler's lifetime, which at this point is not looking that great.

[bac]

Originally Posted by jayman

I wonder what the fine print is? I just can't see a "lifetime" whatever, there is usually enough wiggle room to allow them to wiggle out of a claim

As you know, the devil is in the details. Many, many lawyers spent many many hours drafting a document that takes all the "lifetime" out of this warranty. Good luck with that, Chrysler.

... Brad

[JimN]

1. Cutting the warranty reduces the reserve for warranty work. This is a non-cash expense. Instant improvement to the bottom line without having to do anything.

2. How large is the actual warranty expense for the later years? What fails after the 3/36 warranty?

Since this is GM I have my suspicions. Cutting the warranty infers the product is now lower quality. Way to go to improve consumer confidence. Note to every auto manufacturer: If you don't believe in the quality of your product why should I?