General Motors Corp. has increased the powertrain warranty on all of its 2007 passenger vehicles to five years or 100,000 miles (160,900 kilometers), in a move that the automaker hopes will boost its reputation for quality versus its main Japanese rivals.
The increase, from the previous warranty of three years or 36,000 miles (58,000 kilometers), is effective Wednesday and covers 900 engine, transmission and driveline components, said Mark LaNeve, GM's North America group vice president.
The warranty is part of the company's overall strategy to sell the value of its products versus a deal laden with cash incentives, LaNeve said. The automaker also is hoping that it will erase what it says is a perceived quality gap between its vehicles and those of its main Japanese rivals.
LaNeve said that by both internal and external measures, such as studies by J.D. Power & Associates, the company has closed the quality gap.
"Because of deficits 20 years ago, we're living with a perceptual gap. Perception hasn't caught up to reality," LaNeve said.
The warranties have no deductibles and are transferrable, the company said. They also are accompanied by GM's roadside assistance and courtesy car programs, reports AP.
GM said the powertrain warranties are better than any "full-line manufacturer" in the industry, and will be in addition to the current bumper-to-bumper guarantees of three years or 36,000 miles, whichever comes first. Buicks, Cadillacs, Hummers and Saabs currently have four-year, 50,000 mile (80,400 kilometers) bumper-to-bumper coverage.
Korean automaker Hyundai offers 10-year, 100,000 mile powertrain guarantees.
In July, Ford Motor Co. extended its powertrain warranties by up to two years on its 2007 Ford, Lincoln and Mercury models.