Chevrolet, GMC to Cut Pickup Truck Powertrain Warranty

Chevy 23 II

GM is reducing the mileage limits on its powertrain warranty from 100,000 miles to 60,000 miles after internal studies revealed new-vehicle customers weren't interested in what kind of warranty was available. The revised warranty offerings on Chevrolet and GMC vehicles will remain at five years in length.

GM rolled out the extended warranty plan in 2006 to counteract poor-quality perceptions of American products when compared to their Asian and European counterparts. The cost savings in warranty repairs, a GM spokesman said, will be reinvested into buyer programs that customers hold as a stronger priority when deciding what truck to purchase. Ford has a five-year/60,000-mile powertrain warranty, and Ram has a five-year/100,000-mile offering.

According to Cars.com News, the plan will begin with the 2016-model-year vehicles.

Cars.com photo by Evan Sears

 

Comments

Wow ... this move is surprising.

The warranty, no matter how long it is, is only as good as the company servicing it.

I say this not to bash but my experience with a Dodge Ram a few years ago while under warranty for a stalling issue showed me that even though I had a documented concern and an active warranty, no fix is guaranteed.

Perception of quality and real life experiences are two different things. I know of many FORD and GM people that have had few warranty issues but both manufacturers stepped up and resolved the issues. I also know of numerous people that have had negative experiences with other manufacturers that could not get resolution.

The fact that one truck has a longer warranty than the other never swayed my decision of purchase. I knew based on experience what to look at and what to stay away from.

In my opinion the warranty that a manufacturer supplies with their product is directly related to the life expectancy + the number of problem expected under said warranty. If GM is shortening their warranty it isn't because customers don't want it, it is because the think they are losing money offering that 100k mile warranty. If for was smart they would now start offering a 100k warranty and see how GM looks for cutting theirs.

Perception? I would disagree, it's more like reality. Foreign makes are better quality than domestics.

Whenever a company relies on bean counters this is the result.

Any company should claim that their product is a gold standard not otherwise - it is unfortunate our national automobile company is lowering it standards - not good.

I don't buy my vehicles based on warranty. GM is doing what other are. Not a big deal. The diehard GM buyers are still going to buy them. If you look at all full size trucks and compare them apples to apples the differences are really minimul. Everyone should buy the vehicle that they think will fit their needs and wants. It's news from GM which is what it is but it doesn't matter.

Actually, there is a direct cost of creating warranty guarantees for any product--it increases the retail cost of the item, or it demands that stockholders in that firm accept a smaller return on investment.

GM made the decision that its customers wanted those dollars invested in something other than warranty coverage. They might even be right.

We'll see if they were right within a few years.

The reason why they offered so much warranty was due to inconfidence in their products. FORD does and never had the need to offer the 5yr/100,000 miles on their product to sway buyers. Seriously, why do you need so much warranty? Are you buying a guaranteed POS?

@Diesel

That would be great marketing if Ford went ahead and upped their warranty to 100K. The only thing is now might not be the right time for Ford with the new model coming out. Upping the warranty could send a mixed message that maybe they've already seen issues with the AL body tucks. (Btw, I'm a GM guy and the new F150 looks great!)

This news started surfacing on other vehicle sites 4 days ago.
........................................................................................

GM can put what ever spin they want on this but the truth is profits. GM had an increase in warranty costs of a billion dollars in one year. That wasn't just pickups and it was documented in their financial statement.
Here are a few interesting tidbits:

" It looks like this is purely a cost cutting move as GM increased their warranty reserves YoY at the end of 2014 by 34%.This indicates they see the wave of repairs continuing to rise in the near future."

"According to the company’s 10-k, warranty expenses went up about a billion dollars last year, roughly 30%. See note 13."

"Just Checked Ford’s 10-k. They report warranty visits are down 66% since 2005. Their report came out last May."

Yep, it's a pure money play. GM originally increased the warranty to increased sales/market share but they also need to build good product to back up a longer warranty. It'll cost GM some sales, they'll adjust by putting more cash on the hood.

GM realized that Ford can sell pickups with less warranty so why not join in and make more money for us share owners.

The extended warranties are used when people lack faith in buying a product over reliability concerns. Look who else used the 100k warranty, KIA and Hyundai when their products were viewed as cheap and unreliable. However those had 10 years as well. The 5 year/100k warranties are pretty much eyewash anyhow. It looks good on a window sticker until you sit back and think. The years are the same as Ford and many others, the only difference is the mileage.The only way it works out better is if you drive 20k miles a year or more.

What GM did was give the high mileage drivers a bonus. Apparently their product start showing warranty issues in less than 5 years and under 100k miles and they were taking a beating with claims though.

I guess they were losing too much money in warranty repair costs. My experience is the GM engines don't make it to 100,000 miles without significant problems, unlike the other brands I've also owned. Smart move, GM!

Leaving the 5yr thing in place doesn't really mean much. GM knows 99.99% of truck owners will burn through 60K miles well before 5yr.

Yep, it's a pure money play. GM originally increased the warranty to increased sales/market share...

@Ken

Money...what was your first clue, Ken?

Do you ever actually read these things before you hit the Post button?

@Lou, Flashback to tyler/greg/Michiganbob/sandman and other GM fanbois:

"It looks as unreliable as the 2014 150. I wonder if Ford will match GM's warranty with the new pickup, but I doubt it because of the poor reliability record for Ford."

"I like many others will NOT buy another vehicle without coverage till at least 100K!!! if the manufacture will not stand behind their product, how can they expect a buy too!" - sandman

"Until ford comes out with a 100k warranty they aren't even an option in my new truck search."

"GM did 460 out of a 6.2 with a 100k warranty.
How does that apple taste???"

Considering many customers opt to purchase optional, more inclusive warranties anyway, this is not a catastrophe for consumers. As for "Uh Huh" and others who claim the imports build better vehicles, you might want to check the latest JD Powers three year reliability study that shows all 4 GM brands within the top ten, with Buick just behind Lexus !
Ford? below average, Dodge including Ram? near the bottom only to be second worst to Land Rover, an import brand!

That does not surprise me. It just another nail in their coffin!

bat - Have you ever looked up what makes up the ratings on those surveys?? It is a whole bunch of stuff that has nothing to do with actual reliability. If someone can't figure out how to use the stereo or navigation, and reports it, they count that as negative reliability.

JD Power should change their name to BlueTooth Reliability. Most of the JD Powers issues have to do with stupid people and their cell phones. If their phone is difficult to pair, the vehicle gets blamed:

"J.D. Power says that being able to connect a phone to a car via Bluetooth and then having it recognize the driver's commands were the most often-repeated issues raised in its Vehicle Dependability Study. Some 55% of owners said they couldn't pair their phone with their vehicle's system."

"The top two problems reported by owners in the study are Bluetooth pairing and connectivity, and built-in voice recognition systems misinterpreting the driver's commands. These were the same two problems most frequently reported by owners in last year's Vehicle Dependability Study (VDS)."

@bat -
JD Power Dependability is based on 3 year old trucks. The 2015 results are based on 2012 trucks.
Traditionally we see an upswing in dependability as a truck appraoches the end of its production run and a drop with a new model.
I'll confine my comments to the 1/2 ton segment:
- Ford peaked in 2010 and has seen a drop with the new drivelines and technology in the 2011 and newer trucks. Statistically we have seen improvements in durability over the past 4 years.
- GM 1/2 tons in this survey were the GMT900's which were introduced in 2009. It is an old platform even in 2012. Durability may of been fine but fit and finish sucked. Drum brakes tend to be more durable and cheap compared to disc.
- Ram er Dodge. The current product was released in 2009 with a mid-cycle refresh. The Ram 1500 finally made top 3 in JD Power.
- Interestingly enough Toyota Tundra has dropped from the top 3. This isn't due to poor quality but and improvement in ratings for the so called "American" badges. The Tundra surfaced in 2007 and went basically unchanged until 2013. 2014 for all intents and purposes is just a body and interior refresh.

Looks like the GM of old. You can only count on 60k before major issues. Drop the warranty at the same time as introducing a new 8 speed and a new diesel engine? No thanks. I was wanting to buy new next year, now might as well save and buy lightly used with an added warranty.

By that logic, can we conclude Ram and Ford owners are less educated for having below average reliability ratings due to difficulty operating electronics? Or can we assume other manufacturers build better systems or automobiles with less complaints resulting in above average reliability ratings?

I am in shock reading these comments as well as this article. Unless you are the village idiot you should care about warranty, on expensive issues like the powertrain. Any idiot that writes: no ones cares about the warranty is exactly that an idiot. This just shows me GM has no confidence in its products and is trying to save money due to high warranty costs.

Flashee - it is a combination. People tend to take the easy way out and not bother to read a system's operational manual or guides. That means that a company needs to make a system that is intuitive to use. Almost everyone has panned the Ford/Microsoft system for that fact. Ford is changing over to a BlackBerry system which is supposed to be one of the best in the world.

How many people pair their phone with their truck? I don't want to do that even if I could. I don't need my truck to be a phone and I don't need it downloading my address book. I'm sure it matters to a lot of people but not to me. I don't want this feature at all......

All I can say is, what study was this and who did they ask? I do care about a 100,000 mile powertrain warranty.

I don't think anybody here truly understands a vehicle warranty.
I have a lot of past experiences on warranties but to make it simple to understand the warranty is controlled by the dealer more than the maker of said vehicle.

It's really hilarious reading the past posts where you guys have NO idea how warranty really works.
ha ha ha !
you have no idea !

Do explain Tom#3 ...

Do you mean for example when you take said vehicle in and the dealer confirms that it is stalling yet the manufacturer says that is a characteristic of the vehicle design ..the dealer then says "I'm sorry, I wont be reimbursed for any work performed by the manufacturer" is this a dealer issue ?

This was my experience...funny thing is now its a national problem.


http://www.usatoday.com/story/money/cars/2014/08/22/chrysler-nhtsa-stalling-dangerous-investigations-complaints/14462289/

@Tom#3 You have never answered any of my questions.........

What kind of rear diff is in your 2013?
What model , option group and configuration?
How does it behave in mud and snow?
How does traction/stability control work in mud/snow?
What tires are on your truck?
How many miles on your truck?

Warranties are consumer protection.

I don't really think many companies like warranties. They just have to live with it.

The smarter companies have been using warranties as marketing instruments to improve image and sales.

With the upswing in vehicle sales in the US GM probably considers now a good time to reduce the length of warranties.

The lost sales will be outweighed by the improved vehicle market.

Tom#3, since you claim to have much experience with warranties and it's quite clear you are a FCA fan this leads me to believe that your clear inclination towards Chrysler products is quite a poor decision especially with all of those warranty claims.

I had a Jeep, a Chrysler product and I had to get rid of it after 15 months due to the problems I encountered.

After reading how you drive your 2013 F-150 with the 32 year old rear suspension and axle I do understand how you destroy vehicles. How's your Mustang? Have you burnt any more of them;)

I understand you experience with Chrysler warranties, you do get well versed in managing warranties with a Chrysler product.

C'mon guys. this is not complicated.

A warranty is a promise by the manufacturer to do something nice in the future.

"...If you buy my product today, I'll fix it next year if it breaks"

Dealers love the warranty because they win either way. The dealer gets to repair your broken truck, and the manufacturer pays. Customer wins, dealer's service dept gets some business and the other guy (Ford, GM, FCA, etc) pays for it.

What's not to like?

By the way a warranty is NOT a guarantee. A real guarantee is something you could take to court. A warranty, not so much.

I personally feel this is a bad move by GM.
Some of us do consider warranty coverage, product design, dependability, and value.
If GM doesn't have confidence in their trucks reaching 100K without problems, why should we?
People living in the West need to drive long distances and this will provide a major cost increase to them. I was under the impression that Texas was a major truck market for GM. I would think this would not set well with any truck driver that puts on more than 10,000 miles per year.
With truck prices and service cost rising at an unprecedented rate, GM is shooting the GOLDEN GOOSE. Trucks already have the largest profit margins of their product line.
Perhaps enough is enough!!!

So GM's warranty will now match Ford... Big deal... The way the media is covering this is very negative, but to match the warranty of the best selling line.... Must be the wrong answer. It does seem to be interesting timing, but when they extended the warranty out, there was the same negative outlooks... It is what it is.

"All I can say is, what study was this and who did they ask? I do care about a 100,000 mile powertrain warranty."


A few years ago GM ran an ad with Howie Long asking if you'd rather have a F-150 with a "man step" or a Silverado that backs you with a 100k warranty. Fastforward to 2014, GM added a girly-man step and is cutting the 100k warranty in 2015.

LOL.

https://www.youtube.com/watch?v=f235GEKWwBE

Isn't that right, Bob?

Jeez, guys. There's another thing happening here. Dealers sell extended warranties.

They make a colossal profit selling extended warranties--not a huge amount of money but it's sweet profit and the finance department at the dealership makes it happen.

Dealer finance personnel are often members of the owner's family, too, so they can keep the exact amount of commissions paid a nice little secret among themselves.

What's not to like.

I think this is a cost reduction move to do G.M.'s high legal problems and makes it harder for the future people with problems to recover their money. Does the warranty matter to me. Your dam right it does and especially with an all new platform I.E, Ford F series. So again looks like Chrysler will be getting my money again.

https://autos.yahoo.com/news/cover-allegations-against-gm-192800527.html;_ylt=A0SO8yuYuwhVWvoAo9pXNyoA;_ylu=X3oDMTEyZ3NuOHN2BGNvbG8DZ3ExBHBvcwM0BHZ0aWQDUTFNMDFfMQRzZWMDc3I-

2012 Ford F-150 fires still unexplained?

http://www.clickorlando.com/news/2012-ford-f150-fires-still-unexplained/29462000

2015 Ford Mustang Recalled for Fire Risk!

http://www.mustangheaven.com/2015/2015-mustang-gt-catches-fire-and-burns/

This is not about now - it is about the future...and here's why...

Without having to warrantee their product, GM is free to value engineer everything in their powertrain. The savings they will harness will allow them to compete on price and maintain their operating margins.

The consumer will be left in the cold - heavy duty trucks with diesels that aren't so heavy duty. All kinds of fuel saving technologies that reduce reliability to appease the EPA but leave the consumer short changed.

I guarantee you that ford and ram fall in line on this and start revisiting their warrantees too.

A damn shame. The Duramax is the most reliable diesel available to us - and I see a bleak future of value engineering at the expense of legendary diesel durability.

We need Toyota to introduce a one ton chassis...

Since the bailouts, 100k warranty seem to have become the norm for the big 3. Obviously it was supposed to be a "proof" that the brands were improving in quality. I think that quality has improve all across the board without a doubt. So maybe these longer warranty are not as necessary as they used to be, but nonetheless, they have become and expectation.

When I am buying any vehicle, I will always take into account what kind of warranty it has. I think this is especially important for vehicles that you might pay a premium for such as a pickup truck.

They way I see it, people are now taking out 72 month or longer term loans to be able to afford their cars. With trucks having sticker prices of $50k or more, this comes as no surprise. The last position that I would want to ever be in would be to owe money on a vehicle that is out of warranty. That is not a good position to be in.

With the typical 5 year/100k warranties that are available right now, that means that you could do a 4 year loan and have a paid off vehicle that is still under warranty. That is great, because in the past, there were no 100k mile warranties. It's an excellent position to be in as a buyer. GM can do whatever they want, but I think that people need to realize if they're going to buy a vehicle with a 60k mile warranty, they better have it paid off by the time they get there. With the prices of trucks these days, you don't want to still owe $20k on a truck and have it out of warranty and then have the unexpected happen, such as needing an engine replacement.

@ Keith CT... you hit the nail on the head.
Years ago articles were written about why would some car mfgs have 100k warranties when these all started happening. Back when car mfg's like a Hyundai, Kia, even Chrysler were all having major quality problems, as they worked thru issue, it was felt the one way to try to win people back over was to offer this "great new extended warranty". Well for many people & car mfg's like Ford & GM, it became a perception that if a mfg had to offer extended warranties, it's because they had so many issues. So at the time Ford & GM resisted doing it. At some point GM might have had some issues and gave in. Fast forward to the present, some mfg's have really improved quality so they can afford to still offer extended warranties. You be the judge. Like I said you can research this topic, don't have to believe me. So it was done for different reasons.

ram might want to do this. Especially with the new ecodiesel and its expensive parts. Edmunds just had their long term ram ecodiesel fuel system replaced under warranty. Over $11,000 just for the parts.

GM has been deriding other trucks and other truck owners for years only to reverse course on most of their talking points.

In addition to warranty coverage, V6 mpg, heated steering wheels and man steps, aluminum is another talking point GM had to back peddle on. Aluminum was looked at, but GM never followed through.

Before the 2015 F-150 debut GM attack Ford saying GM didn't need aluminum Silverado because they had the Colorado coming. But a month after the Detroit Auto Show GM, leaked that they will build an aluminum Silverado for 2018.

I think Lou said it best, "if one lives in a glass house, don't throw stones".

To those of you who are putting so much weight on the 100 mile warranty, you know that it is only the drivetrain correct?? It has been my experience that if you are going to have defects in the driveline, they will tend to appear well before 60k miles. Remember, the time frame is still 5 years, same as the 60k warranties. If it is a design flaw, you wiill hear about the failures and at that point even if you buy the truck with a big warranty you would be crazy. It is like buying an electronics warranty at Best Buy. If there is an issue with an electronic item, it usually appears pretty quickly, not after 2-3 years.

Apparently GM's quality was what was perceived seeing as they said the extended warranties were costing money.

@HEMI,

Wow! Sounds like an unreliable POS.

JD Powers 3 year reliability is not the same as "initial quality" which as many have pointed out, tends to lambaste manufacturers for difficult-to-use electronics. The 3 year reliability study is a different animal and while none of these reports can be 100% accurate, they are nonetheless, the best means we have of trends in the automotive world. You might also be interested to know that GM trucks have once again earned the title of longest lasting, most durable and least expensive to maintain trucks ( 1988-april 2013 based on pickup registrations in the US and Canada). One more thing, the change in warranty applies to vehicles sold in the US, in Canada the current warranty will remain in place for 2016. Don't shoot me, I'm just the messenger!

"JD Powers 3 year reliability is not the same as "initial quality" which as many have pointed out, tends to lambaste manufacturers for difficult-to-use electronics. The 3 year reliability study is a different animal...Don't shoot me, I'm just the messenger!"

@Blat,

Yes, J.D. Powers Initality Quality and Reliability after 3 years are different studies, but they both blast electronics. The reliability study after 3 years is blasting and favoring blue tooth pairing problems to cell phones like many people here have stated! Is that "reliability" or should there be a separate category for Bluetooth guys? You make the call.

"Many brands' reliability ratings were doomed by troublesome electronics.

J.D. Power says that being able to connect a phone to a car via Bluetooth and then having it recognize the driver's commands were the most often-repeated issues raised in its Vehicle Dependability Study. Some 55% of owners said they couldn't pair their phone with their vehicle's system."

- USA Today on the J.D. Power Reliability study after 3 years


http://www.usatoday.com/story/money/2015/02/25/jd-power-vds-reliability/23982237/

Warranties... For some the Sun rises and falls by them. For others they don't care at all. Iv tried it both ways. Iv found its a bad move to set your watch by them and it can also be a bad move to not have one. So it lies somewhere in between. Honestly a good company will stand behind its product and a good product shouldn't need a warranty. Then there is the automotive industry made up of big complicated expensive sometimes well sometimes poorly made/designed/engineered?assembled/damaged products going to all sorts of different environments to face all manner of owners/uses/misusses... a 100K warrenty sounds good then you attach the 5 year term to it... suddenly its not much better than a 5year 60K. O im sure im about to hear from all the guys that drive over 20K a year (and I have been one at times) but the bottom line is most people drive closer to 15ish K a year. So odds are most of those 100K warranties died around 70K at the 5 year mark. Which is practically a 5/60K which is what most do anyway... For me what a warranty is good for is to make sure my car wasn't made on a holiday Friday or hung over Monday. To correct some issue in assembly/build or minor design issue that needs a year or 2 to manifest itself. If you vehicle is very poorly designed its not gonna save you. You know in the first year or 2 if you got a good vehicle or not.

@Rcih and others-the JD Powers 3 year study breaks their categories down so that connectivity issues are separate from powertrain, exterior build and interior build. If you look at the study results you will find that GM brands fared equal to or better than most imports and far better than Ford Dodge/Ram. Fiat in those categories which most of us really worry about-powertrain and transmissions, exterior and interior build.



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