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View Full Version : Chrysler using "lifetime" warranty to boost sales



RitcheyRch
07-27-2007, 04:16 PM
Never offered before in auto history. Should be good for sales.
http://www.reuters.com/article/businessNews/idUSN2620687220070726?feedType=RSS
Chrysler Group said on Thursday it would begin offering a "lifetime" powertrain warranty on almost all of its new vehicles to increase sales and address a longtime concern of dealers.
The warranty covers the engine, transmission and drive systems on Chrysler, Jeep and Dodge models for as long as a first-time owner drives the vehicle. It replaces the automaker's current three-year, 36,000-mile warranty.
The extended warranty, not transferable if a vehicle is sold, was being offered as of Thursday and supported by a TV and newspaper advertising campaign starting on Friday, the automaker said.
Chrysler and other U.S. automakers have said that improved quality has not been fully recognized by American consumers. It joins larger competitors in offering more generous warranties to raise consumer confidence.
Last September, General Motors Corp (GM.N: Quote, Profile, Research) announced a five-year, 100,000-mile warranty on its 2007 models and then extended the offer last February to its certified used cars.
In July 2006, Ford Motor Co (F.N: Quote, Profile, Research) increased its powertrain warranty on new vehicles to five years or 60,000 miles.
Chrysler's North American sales chief Steven Landry said the company's consumer research showed that a larger share of new car shoppers said they would consider buying one of its vehicles if offered the new warranty.
The extended warranty answers a call from Chrysler's dealers who pressed for more effective advertising and improved inventory management by the automaker after unsold vehicles piled up on lots last year, Landry said.
"We didn't want to just match what was out there in the market. We wanted to go beyond it," Landry said.
Chrysler's U.S. sales were down about 1 percent in the first half of this year as it relied on industry-leading incentives, including interest-free financing, to move an aging line-up of pickup trucks and minivans.
The new warranty comes as Cerberus Capital Management prepares to take Chrysler private in a $7.4 billion deal with DaimlerChrysler AG (DCXGn.DE: Quote, Profile, Research).
Landry said the warranty could allow Chrysler to reduce some of its incentive spending, although that was not its aim.
The Chrysler move drew immediate praise from the chief executive of AutoNation (AN.N: Quote, Profile, Research), the largest U.S. auto dealership group.
"When you have good quality, but you have a problem with perception ... you have to do something very dramatic on the warranty side," said AutoNation Chief Executive Mike Jackson. "It worked very well for GM, and I'm sure it will work well for Chrysler."
The new "lifetime" warranty excludes Chrysler's diesel-driven vehicles and its performance-oriented SRT line of vehicles, the company said.
(Reporting by Kevin Krolicki)

Rexone
07-27-2007, 05:01 PM
They would certainly lose their ass with me if I bought one. I drive shit forever. And then some. :D

HocusPocus
07-27-2007, 05:05 PM
They would certainly lose their ass with me if I bought one. I drive shit forever. And then some. :D
i do to.. the very first new truck i ever bought was an 1985 toyota p/u... and i still own it. :D

rvrtoy
07-27-2007, 09:01 PM
I'm sure all the Chrysler F & I guys are loving this one...:rolleyes:

RitcheyRch
07-27-2007, 09:19 PM
Same here.
They would certainly lose their ass with me if I bought one. I drive shit forever. And then some. :D

Trailer Park Casanova
07-28-2007, 06:03 AM
They would certainly lose their ass with me if I bought one. I drive shit forever. And then some. :D
Same here too.
200,000 miles is still new to us.

ratso
07-28-2007, 06:09 AM
Never offered before in auto history. Should be good for sales.
http://www.reuters.com/article/businessNews/idUSN2620687220070726?feedType=RSS
Chrysler Group said on Thursday it would begin offering a "lifetime" powertrain warranty on almost all of its new vehicles to increase sales and address a longtime concern of dealers.
The warranty covers the engine, transmission and drive systems on Chrysler, Jeep and Dodge models for as long as a first-time owner drives the vehicle. It replaces the automaker's current three-year, 36,000-mile warranty.
The extended warranty, not transferable if a vehicle is sold, was being offered as of Thursday and supported by a TV and newspaper advertising campaign starting on Friday, the automaker said.
Chrysler and other U.S. automakers have said that improved quality has not been fully recognized by American consumers. It joins larger competitors in offering more generous warranties to raise consumer confidence.
Last September, General Motors Corp (GM.N: Quote, Profile, Research) announced a five-year, 100,000-mile warranty on its 2007 models and then extended the offer last February to its certified used cars.
In July 2006, Ford Motor Co (F.N: Quote, Profile, Research) increased its powertrain warranty on new vehicles to five years or 60,000 miles.
Chrysler's North American sales chief Steven Landry said the company's consumer research showed that a larger share of new car shoppers said they would consider buying one of its vehicles if offered the new warranty.
The extended warranty answers a call from Chrysler's dealers who pressed for more effective advertising and improved inventory management by the automaker after unsold vehicles piled up on lots last year, Landry said.
"We didn't want to just match what was out there in the market. We wanted to go beyond it," Landry said.
Chrysler's U.S. sales were down about 1 percent in the first half of this year as it relied on industry-leading incentives, including interest-free financing, to move an aging line-up of pickup trucks and minivans.
The new warranty comes as Cerberus Capital Management prepares to take Chrysler private in a $7.4 billion deal with DaimlerChrysler AG (DCXGn.DE: Quote, Profile, Research).
Landry said the warranty could allow Chrysler to reduce some of its incentive spending, although that was not its aim.
The Chrysler move drew immediate praise from the chief executive of AutoNation (AN.N: Quote, Profile, Research), the largest U.S. auto dealership group.
"When you have good quality, but you have a problem with perception ... you have to do something very dramatic on the warranty side," said AutoNation Chief Executive Mike Jackson. "It worked very well for GM, and I'm sure it will work well for Chrysler."
The new "lifetime" warranty excludes Chrysler's diesel-driven vehicles and its performance-oriented SRT line of vehicles, the company said.
(Reporting by Kevin Krolicki)
http://www.***boat.com/ubb/graemlins/idea_2.gif

RitcheyRch
07-28-2007, 09:20 AM
Figures that they would leave the work horses out of the warranty.
http://www.***boat.com/ubb/graemlins/idea_2.gif

HavasuSelect
07-28-2007, 09:52 AM
I might have to consider a Dodge now. How can you not with a warranty like that?

Throttle
07-28-2007, 09:57 AM
they should lower prices on that new wrangler 4dr unlimited... $40k... holy shit, fock! it aint that nice. dealer in havasu thinks they have the market and were not willing to work down from msrp... bs, nobody pays msrp (i usually pay more).

Daytona100
07-28-2007, 10:04 AM
:eek: Wonder how long before they file for chapter 11 protection. Sounds like a losing deal.

OverKill
07-28-2007, 10:19 AM
Transmissons!! In Arizona. Dodge is going to loose there as with that one. People are just going to horse beat the S**T out of those cars/trucks. I know I would. With temps as high as 120 in the summer, I see alot of clutches being replaced.

HavasuSelect
07-28-2007, 11:14 AM
Does anyone know when this offer will commence or if this is just for a limited time?

Flyinbowtie
07-28-2007, 12:51 PM
Until they bring that new Challenger to the road, they just don't have anything that interests me other than the Cummins Trucks.
They know they'd have to replace everything around that Cummins and it would still be hammering away, so they won't play the game there.
They also know that people who drive in a spirited manner are going to "push the envelope", in their performance pieces, and apparently there ain't enough room in the "envelope" for much pushin'.:D
I do want to drive one of those Challengers with Mexi-Hemi and a six speed, tho.
A lifetime warranty on a minivan:rolleyes:
Does that mean if the fake wood on the side of those PT Cruisers fades out, they'll replace it?
Wow.

Tom Brown
07-28-2007, 01:14 PM
I wonder how many Chrysler products have been bought back because of the lemon law and how that number compares to the number of Toyota products that have been returned based on the same law. http://www.***boat.com/ubb/graemlins/idea_2.gif

Tom Brown
07-28-2007, 01:20 PM
Does that mean if the fake wood on the side of those PT Cruisers fades out, they'll replace it?
Powertrain does not include any of the shit that seems to always break on Chryslers. It also does not cover fixing a design problem that causes the A/C belt to come off when driving through a few inches of snow.
My group had a late 90s Caravan. I will say that it was infinitely better than the Aerostar we had before that (worst piece of junk on the road, from what I can tell) and we stacked 320000 Kms (about 200000 miles) on it before totalling it off but there were all kinds of problems. It was an expensive van to own and the warranty they touted as being so great didn't cover shit .... but it cost pennies on the dollar compared to any of our Aerostars.
How many 2000~2004 Caravans had to have their air conditioning system replaced? All of ours did. That's about 45 vans. If you complain loudly enough, they will even cover it with some sort of unwritten warranty.
I find it interesting that our country maintenance guys all drive company Caravans during the day and 6 of the 9 guys drive home at night in Toyota Previas and Siennas.