DETROIT: General Motors Co said it plans to cut its powertrain warranty on Chevrolet and GMC vehicles for the 2016 model year because the offer was not a strong enough selling point.
The five-year, 100,000-mile powertrain coverage, in place for nearly a decade, will be reduced to five years and 60,000 miles for the 2016 models, GM said on Thursday.
“We talked to our customers and learned that free scheduled maintenance and warranty coverage do not rank high as a reason to purchase a vehicle among buyers of non-luxury brands," GM said in a statement.
"We will reinvest the savings we will realise into other retail programs that our customers have told us they value more than these.”
A GM spokesman said the change will not result in a material financial impact.
Under a powertrain warranty, a carmaker will make repairs to the engine and transmission at no cost to the consumer.
The GM brands will continue to offer courtesy transportation and roadside assistance during the coverage period, the company said.
The Detroit automaker said it also will scale back its offer of two years of free maintenance, including oil changes and tire rotations, on most new Chevy, GMC and Buick vehicles. The brands will reduce the number of free service visits to two, from four, starting with 2016 models.
The change was initially reported by Automotive News.
